Merck (MRK): analysis in plain words
Is Merck cheap or expensive? How it makes money, whether it grows and its risks, explained in plain words and with its official accounts.
Merck (MRK) is listed on the NYSE and we classify it in healthcare and pharma. Below are its key dated figures, how it makes money, how it compares with its sector, what works for and against Merck according to those figures, and the questions people ask most about the stock. No buy or sell tips.
Merck (MRK) key figures as of November 4, 2026
| Figure | Value | What it measures |
|---|---|---|
| Share price | $150.36 | Last price on November 4, 2026 |
| P/E ratio (TTM) | 151.9x | Price over earnings per share |
| Revenue growth | +4.7% | Latest quarter vs the same quarter a year earlier |
| Net margin (TTM) | 3.6% | Profit for every 100 of sales |
| Net debt / EBITDA | 2.9x | Years of operating profit to repay debt |
| Dividend yield | 2.35% | Annual dividend over price |
| Market cap | $371.0 billion | What the stock market values it at |
The Merck figures come from Yahoo Finance, the same source the Fintols analysis uses, retrieved on November 4, 2026. Any MRK figure that is not available shows as N/A: we do not estimate it.
How Merck makes money
Merck & Co. reports two segments. Pharmaceutical, by far the larger, sells Keytruda, its top cancer immunotherapy, the HPV vaccine Gardasil, Winrevair, Bridion and diabetes drugs like Januvia. Animal Health sells medicines and vaccines for pets and livestock, including the Bravecto flea and tick treatment.
Over the last 12 months, Merck brought in revenue of $67.4 billion. For every 100 it sells, Merck keeps 76.9 after the direct cost of what it sells (gross margin) and 41.2 after all operating costs (operating margin). With 73,000 full-time employees, that is about $923,000 of revenue per employee.
Merck against its sector
To know whether a Merck figure is high or low you have to put it next to similar companies. This table compares Merck with the median of the 30 healthcare and pharma companies Fintols covers, with data as of November 4, 2026.
| Figure | Merck | healthcare and pharma median |
|---|---|---|
| P/E | 151.9x | 31.3x (30) |
| Revenue growth | +4.7% | +8.3% (33) |
| Net margin | 3.6% | 14.9% (33) |
| Dividend yield | 2.35% | 1.52% (33) |
| Net debt / EBITDA | 2.9x | 1.6x (31) |
In short, against the typical healthcare and pharma company, Merck trades on a higher P/E, grows more slowly and earns a thinner margin. By size, Merck ranks number 4 of 28 healthcare and pharma companies quoted in USD on Fintols.
The bull case for Merck
What works in favour of Merck, according to its figures as of November 4, 2026:
- Analysts expect Merck earnings to rise: its P/E on the next 12 months of estimated earnings is 16.7x, below the current 151.9x.
The main risk for Merck
The price already assumes a lot: Merck trades at 151.9x its last 12 months of earnings, against 31.3x for the healthcare and pharma median. If growth disappoints, the multiple can shrink and the share price with it.
On top of that: merck runs on a thin net margin (3.6%, against a healthcare and pharma median of 14.9%): a rise in costs can easily wipe out profit.
And, like the rest of healthcare and pharma, Merck is exposed to a key drug losing patent protection or a clinical trial failing, plus government pressure on prices.
Frequently asked questions about Merck
Is it a good time to buy Merck stock?
Fintols does not tell you whether to buy or sell Merck, and nobody knows what the price will do tomorrow. What we can show you is where it stands today. As of November 4, 2026, Merck stock trades at $150.36, 4% below its 52-week high ($156.92) and 81% above its low ($82.91). Its P/E is 151.9x against a healthcare and pharma median of 31.3x, and 16.7x on the earnings analysts expect over the next 12 months. With Merck, as with any stock, timing matters less than understanding the business, investing for the long run and not betting everything on a single company.
Does Merck pay a dividend?
Yes. As of November 4, 2026, Merck pays $3.40 per share a year, which at today's price is a yield of 2.35%. It uses 267% of its profit to pay it, more than it earns, which cannot last forever. Its average dividend yield over the last five years is 2.87%. The healthcare and pharma median on Fintols is 1.52%.
Is Merck stock expensive?
It depends on what you compare it with. On P/E, Merck trades at 151.9x its last 12 months of earnings: more expensive than the healthcare and pharma median (31.3x). Including its debt, Merck is valued at 25.3x its EBITDA (EV/EBITDA). A high P/E alone does not make Merck expensive: it can be justified if earnings grow fast, and a low one can reflect a business in trouble.
Who are Merck's competitors?
On Fintols we compare Merck with Intuitive Surgical, Johnson & Johnson and Medtronic, which are also in healthcare and pharma. As of November 4, 2026, Intuitive Surgical is worth $170.3 billion and trades on a P/E of 58.3; Johnson & Johnson is worth $665.2 billion and trades on a P/E of 41.9; Medtronic is worth $134.3 billion and trades on a P/E of 25.8. Each has a side-by-side comparison with Merck below.
Merck competitors
- Intuitive Surgical (ISRG) analysis · Merck vs Intuitive Surgical comparison
- Johnson & Johnson (JNJ) analysis · Merck vs Johnson & Johnson comparison
- Medtronic (MDT) analysis · Merck vs Medtronic comparison
To understand Merck better
- DCF and WACC Explained: A Practical Valuation Guide
- P/E Ratio and EPS Explained: How to Read Them Without Traps
More companies like Merck: healthcare and pharma stocks, S&P 500 companies and S&P 100 companies. Open the full MRK analysis with its valuation and scenarios. Educational content about Merck, not investment advice.