Merck KGaAXSWX:MER 82 5-Year Yield-on-Cost % is 2.77 as of Jul. 06, 2026, which is 19% above its 10-year median of 2.32. GuruFocus rates XSWX:MER with a GF Score™ of 82/100 and a GF Value™ of CHF128.27. The stock has 9 warning signs investors should review. Among 518 Drug Manufacturers companies, Merck KGaA ranks better than 54.25% on this metric.
Merck KGaA's yield on cost for the quarter that ended in Mar. 2026 was 2.77.
The historical rank and industry rank for Merck KGaA's 5-Year Yield-on-Cost % or its related term are showing as below:
XSWX:MER'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 1.12 Med: 2.32 Max: 3.82
Current: 2.77
During the past 13 years, Merck KGaA's highest Yield on Cost was 3.82. The lowest was 1.12. And the median was 2.32.
XSWX:MER's 5-Year Yield-on-Cost % is ranked better than 54.25% of 518
companies
in the Drug Manufacturers industry
Industry Median: 2.265
vs XSWX:MER: 2.77
Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.
Merck KGaA 5-Year Yield-on-Cost % Related Terms
XSWX:MER vs ZTS, UTHR, VTRS: 5-Year Yield-on-Cost % Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Merck KGaA's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Merck KGaA 5-Year Yield-on-Cost % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Merck KGaA's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where Merck KGaA's 5-Year Yield-on-Cost % falls into.
Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.
Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.
Therefore, Yield-on-Cost of Merck KGaA is calculated as
Merck KGaA (XSWX:MER) has a 5-Year Yield-on-Cost % of 2.77 as of Jul. 06, 2026. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Merck KGaA and its competitors. This is 19% above median its historical median of 2.32. Over the past decade, Merck KGaA's 5-Year Yield-on-Cost % has ranged from 1.12 to 3.82. According to the industry distribution chart, Merck KGaA ranks #237 out of 518 companies in the Drug Manufacturers industry, placing it in the top 45.8%.
Is Merck KGaA's 5-Year Yield-on-Cost % too high?
Merck KGaA's current 5-Year Yield-on-Cost % of 2.77 is 19% above median its 10-year median of 2.32. Over the past 10 years, this metric has ranged from a low of 1.12 to a high of 3.82. The Drug Manufacturers industry median 5-Year Yield-on-Cost % is 2.27. Merck KGaA's value of 2.77 is 22.3% above this industry median. Based on the distribution chart, Merck KGaA ranks #237 out of 518 companies in the Drug Manufacturers industry, which is above the industry midpoint. Overall, Merck KGaA has a GF Score™ of 82/100, reflecting its overall financial health beyond just this single metric.
How does Merck KGaA's 5-Year Yield-on-Cost % compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Merck KGaA ranks #237 out of 518 companies for 5-Year Yield-on-Cost %. This puts Merck KGaA in the upper half of its industry. The industry median 5-Year Yield-on-Cost % is 2.27. Merck KGaA's value of 2.77 is 22.3% above this benchmark. Historically, Merck KGaA's own 5-Year Yield-on-Cost % has ranged from 1.12 to 3.82 over the past decade. While the company's 10-year median is 2.32 vs. the industry median of 2.27, Merck KGaA has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 5-Year Yield-on-Cost % for a Drug Manufacturers company?
The median 5-Year Yield-on-Cost % among Drug Manufacturers companies is 2.27, based on 518 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year Yield-on-Cost % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year Yield-on-Cost % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Merck KGaA's current 5-Year Yield-on-Cost % of 2.77 is 22.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 5-Year Yield-on-Cost % mean?
A high 5-Year Yield-on-Cost % can signal that a stock is expensive relative to its fundamentals. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Merck KGaA and its competitors. For the Drug Manufacturers industry, the median 5-Year Yield-on-Cost % is 2.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Merck KGaA's current 5-Year Yield-on-Cost % is 2.77, which is 19% above median its own 10-year median of 2.32. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Merck KGaA stock overvalued right now?
Merck KGaA (XSWX:MER) has a current 5-Year Yield-on-Cost % of 2.77. The stock's GF Value™ is CHF128.27, compared to a current price of CHF132.80 — trading 3.5% above its estimated fair value. The current 5-Year Yield-on-Cost % is 2.77, which is 19% above median its 10-year median of 2.32 and 22.3% above the Drug Manufacturers industry median of 2.27. Merck KGaA's overall GF Score™ is 82/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 5-Year Yield-on-Cost % calculated?
5-Year Yield-on-Cost % is calculated from a company's financial statements. For Merck KGaA (XSWX:MER), the current 5-Year Yield-on-Cost % is 2.77 as of Jul. 06, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Merck KGaA (XSWX:MER) Overvalued in 2026?
Based on GuruFocus' analysis, Merck KGaA stock appears to be overvalued.
The current stock price of CHF132.80 is trading 3.5% above its estimated GF Value™ of CHF128.27.
Key valuation signals for XSWX:MER:
5-Year Yield-on-Cost %: 2.77 (19% above median its 10-year median of 2.32)
GF Value™: CHF128.27 vs. price of CHF132.80 (3.5% above fair value)
Industry Position: 22.3% above the Drug Manufacturers median (#237 of 518)
No single metric tells the full story. See the XSWX:MER stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Merck KGaA operates in three main segments: Life Science, Electronics, and Healthcare. The Life Science segment provides laboratory consumables and instruments to researchers in academia and applied fields, including the biopharmaceutical industry. The Electronics segment offers specialty materials to manufacture a variety of products, such as semiconductors and flat-screen televisions. In the healthcare segment, Merck develops, manufactures, and sells branded pharmaceuticals with significant therapeutic concentrations in oncology, multiple sclerosis, and fertility. In 1995, the E. Merck KG family publicly sold part of the company, resulting in the current 30% public ownership of the firm.
82GF Score
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