Question 1

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

Accepted Answer

Merck & Co. (MRK) P/E ratio is 35.3× as of July 22, 2026. The ratio is calculated by dividing market capitalisation by trailing twelve-month earnings (net income), using USD-normalised financials (IAS 21 exchange-rate translation for non-USD reporters).

Question 2

How is the P/E ratio calculated?

Accepted Answer

P/E = Share Price ÷ Trailing Twelve-Month (TTM) Diluted EPS, or equivalently Market Capitalisation ÷ TTM Net Income. 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/E ratio?

Accepted Answer

The price-to-earnings (P/E) ratio, also called the earnings multiple, measures how much investors pay per dollar of a company's trailing twelve-month (TTM) earnings. It is calculated as share price ÷ TTM diluted EPS (equivalent to market capitalisation ÷ TTM net income). A higher P/E implies the market is pricing in stronger future earnings growth or lower risk; a lower P/E can signal slower expected growth, higher risk, or potential undervaluation.

Question 4

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

Accepted Answer

There is no universal "good" P/E. As a rule of thumb, the S&P 500 has historically averaged a P/E in the mid-to-high teens; mature, slow-growth businesses commonly trade in the 10–18× range, while high-growth or asset-light companies often trade at 25–50×+. What matters is the comparison to sector peers and to the company's own historical range. For Merck & Co. specifically, the relevant sector benchmark is the current sector median of 24.2×.

Question 5

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

Accepted Answer

Merck & Co.'s P/E ratio of 35.3× is below its own 5-year average of 68.1× and above the sector median of 24.2×. That places the current reading at the 77th 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/E ratio range?

Accepted Answer

In the available daily series, Merck & Co. (MRK) P/E ratio has ranged from a low of 5.7× in 2009 to a high of 923.3× in 2024. The 5-year average is 68.1× and the 5-year median is 20.1×.

Question 7

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

Accepted Answer

Merck & Co. (MRK) P/E ratio at the end of 2025 was 14.3×. Annual values reflect the multiple on the last trading day of each calendar year, using the trailing twelve-month earnings figure available at that date.

Question 8

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

Accepted Answer

Valuation multiples move with two inputs: the numerator (market capitalisation, which tracks the share price) and the denominator (earnings). 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	$18.3B	14.3×	-0.5×	Dec 31, 2025
2024	$253B	$17.1B	14.8×	-748.1×	Dec 31, 2024
2023	$278B	$365M	762.9×	+743.5×	Dec 31, 2023
2022	$281B	$14.5B	19.4×	+4.5×	Dec 31, 2022
2021	$194B	$13B	14.8×	-13.1×	Dec 31, 2021
2020	$197B	$7.07B	27.9×	+5.6×	Dec 31, 2020
2019	$220B	$9.84B	22.4×	-8.0×	Dec 31, 2019
2018	$189B	$6.22B	30.4×	-30.0×	Dec 31, 2018
2017	$145B	$2.4B	60.4×	+21.0×	Dec 31, 2017
2016	$154B	$3.92B	39.4×	+7.8×	Dec 31, 2016
2015	$140B	$4.44B	31.5×	+18.6×	Dec 31, 2015
2014	$154B	$11.9B	12.9×	-18.8×	Dec 31, 2014
2013	$140B	$4.4B	31.7×	+12.6×	Dec 31, 2013
2012	$118B	$6.17B	19.2×	+1.7×	Dec 31, 2012
2011	$109B	$6.27B	17.4×	-105.5×	Dec 31, 2011
2010	$106B	$861M	122.9×	+117.2×	Dec 31, 2010
2009	$73.5B	$12.9B	5.7×	-2.1×	Dec 31, 2009
2008	$61.2B	$7.81B	7.8×	-28.9×	Dec 31, 2008
2007	$120B	$3.28B	36.7×	+16.4×	Dec 31, 2007
2006	$90.2B	$4.43B	20.3×	+6.0×	Dec 31, 2006
2005	$66.3B	$4.63B	14.3×	+2.6×	Dec 31, 2005
2004	$67.9B	$5.81B	11.7×	-2.7×	Dec 31, 2004
2003	$98B	$6.83B	14.3×	-2.6×	Dec 31, 2003
2002	$121B	$7.15B	17.0×	—	Dec 31, 2002


Medtronic (MDT)	22.2×
McKesson (MCK)	22.2×
Illumina (ILMN)	21.7×
ResMed (RMD)	21.6×
GE HealthCare (GEHC)	21.6×
Pfizer (PFE)	21.1×
Quest Diagnostics (DGX)	21.1×
Henry Schein (HSIC)	21.0×
AptarGroup (ATR)	20.9×
IQVIA (IQV)	20.7×
Biogen (BIIB)	19.7×
Zoetis (ZTS)	18.9×
Gilead Sciences (GILD)	18.8×
Humana (HUM)	18.5×
Regeneron Pharmaceuticals (REGN)	18.2×
Bristol-Myers Squibb (BMY)	17.0×
Elevance Health (ELV)	17.0×
HCA Healthcare (HCA)	15.8×
AstraZeneca (AZN)	14.7×
DaVita (DVA)	13.3×
Incyte (INCY)	13.1×
Cigna (CI)	11.1×
Novo Nordisk (NVO)	8.6×
Solventum (SOLV)	7.9×
Universal Health Services (UHS)	7.2×

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

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

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

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

Merck & Co. P/E Ratio by Year

Merck & Co. P/E Ratio 2025: 14.3×

Merck & Co. P/E Ratio 2024: 14.8×

Merck & Co. P/E Ratio 2023: 762.9×

Merck & Co. P/E Ratio 2022: 19.4×

Merck & Co. P/E Ratio 2021: 14.8×

Sector peers by P/E Ratio — chart

Sector peers by P/E Ratio — table

Frequently asked questions

Merck & Co. (MRK) Key Financials