Question 1

What is Merck & Co.'s P/FCF ratio?

Accepted Answer

Merck & Co. (MRK) P/FCF ratio is 22.3× as of July 22, 2026. The ratio is calculated by dividing market capitalisation by trailing twelve-month free cash flow, using USD-normalised financials (IAS 21 exchange-rate translation for non-USD reporters).

Question 2

How is the P/FCF ratio calculated?

Accepted Answer

P/FCF = Market Capitalisation ÷ Trailing Twelve-Month (TTM) Free Cash Flow, where Free Cash Flow = Operating Cash Flow − Capital Expenditures. All inputs are sourced from audited GAAP/IFRS filings and translated to USD using period-end exchange rates so the multiple is comparable across companies and currencies.

Question 3

What is the P/FCF ratio?

Accepted Answer

The price-to-free-cash-flow (P/FCF) ratio compares a company's market capitalisation to its trailing twelve-month (TTM) free cash flow. It is calculated as market cap ÷ TTM free cash flow, where free cash flow = operating cash flow − capital expenditures. Because FCF cannot be inflated by non-cash accounting items, P/FCF is often considered a cleaner measure of "earnings-power valuation" than P/E — especially for capital-intensive businesses where depreciation diverges from real cash outflows.

Question 4

What is a good P/FCF ratio for Merck & Co.?

Accepted Answer

Mature companies that consistently convert profit into cash often trade at 15–25× P/FCF; capital-intensive businesses with lumpy capex typically trade lower. Compare against sector peers and against the company's own multi-year average — single-year P/FCF can be distorted by working-capital swings. For Merck & Co. specifically, the relevant sector benchmark is the current sector median of 19.1×.

Question 5

Is Merck & Co.'s P/FCF ratio high or low?

Accepted Answer

Merck & Co.'s P/FCF ratio of 22.3× is above its own 5-year average of 20.9× and above the sector median of 19.1×. That places the current reading at the 59th percentile of its 10-year history. A higher multiple usually reflects stronger expected growth, lower perceived risk, or higher returns on capital; a lower multiple reflects the opposite.

Question 6

What is Merck & Co.'s historical P/FCF ratio range?

Accepted Answer

In the available daily series, Merck & Co. (MRK) P/FCF ratio has ranged from a low of 8.1× in 2008 to a high of 72.9× in 2009. The 5-year average is 20.9× and the 5-year median is 19.9×.

Question 7

What was Merck & Co.'s P/FCF ratio in 2025?

Accepted Answer

Merck & Co. (MRK) P/FCF ratio at the end of 2025 was 21.1×. Annual values reflect the multiple on the last trading day of each calendar year, using the trailing twelve-month free cash flow figure available at that date.

Question 8

Why does Merck & Co.'s P/FCF ratio change over time?

Accepted Answer

Valuation multiples move with two inputs: the numerator (market capitalisation, which tracks the share price) and the denominator (free cash flow). Share-price changes — driven by interest rates, earnings expectations, risk appetite, and broader market sentiment — typically dominate short-term moves, while changes in the underlying fundamental drive the longer-term trend. As a result, the ratio can rise during stock-price rallies even if the business itself has not become more valuable, and fall during sell-offs even when fundamentals are improving.


2025	$260B	$12.4B	21.1×	+7.1×	Dec 31, 2025
2024	$253B	$18.1B	14.0×	-16.5×	Dec 31, 2024
2023	$278B	$9.14B	30.5×	+11.3×	Dec 31, 2023
2022	$281B	$14.7B	19.1×	-0.8×	Dec 31, 2022
2021	$194B	$9.71B	19.9×	-13.9×	Dec 31, 2021
2020	$197B	$5.82B	33.9×	+11.8×	Dec 31, 2020
2019	$220B	$9.97B	22.1×	-0.6×	Dec 31, 2019
2018	$189B	$8.31B	22.7×	-9.0×	Dec 31, 2018
2017	$145B	$4.56B	31.7×	+14.1×	Dec 31, 2017
2016	$154B	$8.76B	17.6×	+5.0×	Dec 31, 2016
2015	$140B	$11.1B	12.6×	-15.1×	Dec 31, 2015
2014	$154B	$5.54B	27.7×	+13.9×	Dec 31, 2014
2013	$140B	$10.1B	13.8×	-0.8×	Dec 31, 2013
2012	$118B	$8.07B	14.6×	+4.4×	Dec 31, 2012
2011	$109B	$10.7B	10.3×	-1.3×	Dec 31, 2011
2010	$106B	$9.14B	11.6×	-26.5×	Dec 31, 2010
2009	$73.5B	$1.93B	38.0×	+26.4×	Dec 31, 2009
2008	$61.2B	$5.27B	11.6×	-8.5×	Dec 31, 2008
2007	$120B	$5.99B	20.1×	+4.5×	Dec 31, 2007
2006	$90.2B	$5.79B	15.6×	+4.9×	Dec 31, 2006
2005	$66.3B	$6.21B	10.7×	+1.1×	Dec 31, 2005
2004	$67.9B	$7.07B	9.6×	-2.7×	Dec 31, 2004
2003	$98B	$7.95B	12.3×	-4.6×	Dec 31, 2003
2002	$121B	$7.16B	16.9×	—	Dec 31, 2002


McKesson (MCK)	17.8×
Gilead Sciences (GILD)	16.9×
DexCom (DXCM)	16.9×
Pfizer (PFE)	16.7×
Humana (HUM)	16.4×
Quest Diagnostics (DGX)	16.3×
UnitedHealth Group (UNH)	15.9×
Labcorp Holdings (LH)	15.9×
Becton, Dickinson and (BDX)	14.0×
HCA Healthcare (HCA)	13.5×
Elevance Health (ELV)	13.4×
Incyte (INCY)	12.9×
CVS Health (CVS)	12.4×
Universal Health Services (UHS)	12.2×
Baxter International (BAX)	12.1×
Cardinal Health (CAH)	11.3×
IQVIA (IQV)	11.3×
Bristol-Myers Squibb (BMY)	10.4×
Biogen (BIIB)	10.3×
Zimmer Biomet Holdings (ZBH)	9.6×
Cigna (CI)	9.1×
Viatris (VTRS)	9.1×
DaVita (DVA)	6.9×
Teladoc Health (TDOC)	3.9×
Centene (CNC)	2.5×

P/FCF Ratio for Merck & Co. (MRK) 2002-2026

P/FCF Ratio daily chart for Merck & Co. (MRK)

Historical P/FCF Ratio for Merck & Co. (MRK) from 2002 to 2025

About P/FCF Ratio at Merck & Co. (MRK)

Merck & Co. P/FCF Ratio by Year

Merck & Co. P/FCF Ratio 2025: 21.1×

Merck & Co. P/FCF Ratio 2024: 14.0×

Merck & Co. P/FCF Ratio 2023: 30.5×

Merck & Co. P/FCF Ratio 2022: 19.1×

Merck & Co. P/FCF Ratio 2021: 19.9×

Sector peers by P/FCF Ratio — chart

Sector peers by P/FCF Ratio — table

Frequently asked questions

Merck & Co. (MRK) Key Financials