Stock Analysis on Net

Merck & Co. Inc. (NYSE:MRK)

$24.99

Price to Book Value (P/BV)
since 2005

Microsoft Excel

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Calculation

Merck & Co. Inc., P/BV, long-term trends, calculation

Microsoft Excel

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).

1 US$

2 Data adjusted for splits and stock dividends.

3 Closing price as at the filing date of Merck & Co. Inc. Annual Report.


Share Price
The share price exhibits considerable volatility over the observed period. From 2006 to 2009, there was a noticeable decline, reaching a low point in 2009. Following this, the price generally recovered and experienced an upward trend, peaking significantly in 2023. However, 2024 and 2025 show a decline from the peak, indicating fluctuations in market valuation.
Book Value Per Share (BVPS)
The book value per share presented a steady increase from 2006 through 2010, with a notable jump in 2010 followed by a decline until 2019. After 2019, there is an upward trend again, reaching a high in 2022, then a slight decline in 2023, followed by an increase in 2025. This pattern suggests periods of growth in equity value interspersed with occasional decreases.
Price-to-Book Value Ratio (P/BV)
The P/BV ratio has shown significant fluctuation throughout the years. Initially, it decreased sharply between 2006 and 2009, reaching a low around 2009. Post-2009, there was a recovery and a general increasing trend, with peaks in 2019 and 2024. The ratio’s spikes represent times when market prices increased disproportionately relative to book value, indicating high investor confidence or overvaluation. Conversely, the declines reflect more conservative market valuations relative to book equity.
Overall Trends and Insights
There is a clear cyclical pattern in both market valuation and book value metrics. The early period was characterized by decreasing share prices and P/BV ratios, possibly reflecting external market pressures. The post-2009 recovery suggests improved market sentiment or company performance. The divergence in 2019 and 2023, with high P/BV ratios despite fluctuations in BVPS, could imply market optimism or speculative influences. The volatility in share price compared to more moderate changes in book value indicates that market perception and external factors significantly impact the company's valuation.

Comparison to Competitors

Merck & Co. Inc., P/BV, long-term trends, comparison to competitors

Microsoft Excel

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).


Comparison to Sector (Pharmaceuticals, Biotechnology & Life Sciences)

Merck & Co. Inc., P/BV, long-term trends, comparison to sector (pharmaceuticals, biotechnology & life sciences)

Microsoft Excel

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).


Comparison to Industry (Health Care)