Price to Earnings (P/E)
since 2005
Calculation
Merck & Co. Inc., P/E, long-term trends, calculation
| P/E | = | Share price1, 2, 3 | ÷ | Earnings per share1 (EPS) | EPS1 | = | Net income available to common shareholders1 (in millions) | ÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 24, 2026 | 16.79 | = | 123.93 | ÷ | 7.38 | 7.38 | = | 18,254 | ÷ | 2,472,392,003 | |
| Feb 25, 2025 | 13.49 | = | 91.43 | ÷ | 6.78 | 6.78 | = | 17,117 | ÷ | 2,526,036,240 | |
| Feb 26, 2024 | 893.99 | = | 128.84 | ÷ | 0.14 | 0.14 | = | 365 | ÷ | 2,532,643,872 | |
| Feb 24, 2023 | 19.21 | = | 109.89 | ÷ | 5.72 | 5.72 | = | 14,519 | ÷ | 2,538,592,467 | |
| Feb 25, 2022 | 14.78 | = | 76.32 | ÷ | 5.16 | 5.16 | = | 13,049 | ÷ | 2,527,733,606 | |
| Feb 25, 2021 | 26.72 | = | 74.62 | ÷ | 2.79 | 2.79 | = | 7,067 | ÷ | 2,530,315,668 | |
| Feb 26, 2020 | 20.60 | = | 79.94 | ÷ | 3.88 | 3.88 | = | 9,843 | ÷ | 2,536,268,760 | |
| Feb 27, 2019 | 33.46 | = | 80.62 | ÷ | 2.41 | 2.41 | = | 6,220 | ÷ | 2,581,220,308 | |
| Feb 27, 2018 | 61.63 | = | 54.72 | ÷ | 0.89 | 0.89 | = | 2,394 | ÷ | 2,696,190,502 | |
| Feb 28, 2017 | 46.14 | = | 65.87 | ÷ | 1.43 | 1.43 | = | 3,920 | ÷ | 2,745,571,067 | |
| Feb 26, 2016 | 31.64 | = | 50.64 | ÷ | 1.60 | 1.60 | = | 4,442 | ÷ | 2,775,258,591 | |
| Feb 27, 2015 | 13.94 | = | 58.54 | ÷ | 4.20 | 4.20 | = | 11,920 | ÷ | 2,838,192,933 | |
| Feb 27, 2014 | 37.83 | = | 56.66 | ÷ | 1.50 | 1.50 | = | 4,404 | ÷ | 2,940,622,461 | |
| Feb 28, 2013 | 20.94 | = | 42.73 | ÷ | 2.04 | 2.04 | = | 6,168 | ÷ | 3,022,367,538 | |
| Feb 28, 2012 | 18.63 | = | 38.38 | ÷ | 2.06 | 2.06 | = | 6,272 | ÷ | 3,044,008,396 | |
| Feb 28, 2011 | 116.63 | = | 32.57 | ÷ | 0.28 | 0.28 | = | 861 | ÷ | 3,083,080,697 | |
| Mar 1, 2010 | 9.00 | = | 37.27 | ÷ | 4.14 | 4.14 | = | 12,899 | ÷ | 3,115,317,260 | |
| Feb 27, 2009 | 6.53 | = | 24.20 | ÷ | 3.70 | 3.70 | = | 7,808 | ÷ | 2,107,712,364 | |
| Feb 28, 2008 | 29.88 | = | 45.20 | ÷ | 1.51 | 1.51 | = | 3,275 | ÷ | 2,165,289,746 | |
| Feb 28, 2007 | 21.57 | = | 44.15 | ÷ | 2.05 | 2.05 | = | 4,434 | ÷ | 2,166,483,163 | |
| Mar 13, 2006 | 16.62 | = | 35.20 | ÷ | 2.12 | 2.12 | = | 4,631 | ÷ | 2,187,042,320 |
Based on: 10-K (reporting date: 2025-12-31), 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.
The price-to-earnings (P/E) ratio exhibits considerable fluctuation over the observed period. Initial values indicate a moderate P/E ratio, followed by a period of volatility and then a return to more moderate levels before a significant outlier in the most recent year.
- Initial Period (2006-2008)
- From 2006 to 2008, the P/E ratio generally increased, moving from 16.62 to 29.88. This suggests increasing investor confidence or expectations of future earnings growth during this timeframe. The increase was not linear, with a slight deceleration in the rate of increase between 2007 and 2008.
- Financial Crisis & Recovery (2009-2012)
- A substantial decline in the P/E ratio occurred in 2009, reaching a low of 6.53. This likely reflects the impact of the financial crisis on investor sentiment and earnings. The ratio then experienced a dramatic spike in 2011 to 116.63, followed by a decrease to 18.63 in 2012. The 2011 spike is particularly noteworthy and warrants further investigation, potentially linked to a temporary surge in share price or a significant drop in earnings per share (EPS).
- Moderate Fluctuations (2013-2019)
- Between 2013 and 2019, the P/E ratio demonstrated more moderate fluctuations, ranging from approximately 13.94 to 61.63. There is no clear, consistent trend during this period, indicating a relatively stable, yet variable, market valuation. The ratio peaked in 2018 at 61.63, then decreased in 2019.
- Recent Years (2020-2024)
- From 2020 to 2023, the P/E ratio remained relatively contained, fluctuating between 14.78 and 19.21. However, a dramatic increase to 893.99 is observed in 2024. This extreme value is likely attributable to a substantial decrease in earnings per share, as the share price did not experience a comparable increase. The ratio then decreased significantly to 13.49 in 2025, and continued to 16.79 in 2026.
Overall, the P/E ratio has been subject to significant volatility, particularly in 2011 and 2024. These fluctuations suggest that the company’s valuation has been sensitive to changes in both market conditions and company-specific performance. The recent outlier in 2024 requires careful consideration and further analysis of the underlying earnings data.
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Comparison to Competitors
Merck & Co. Inc., P/E, long-term trends, comparison to competitors
| Merck & Co. Inc. | AbbVie Inc. | Amgen Inc. | Bristol-Myers Squibb Co. | Danaher Corp. | Eli Lilly & Co. | Gilead Sciences Inc. | Johnson & Johnson | Pfizer Inc. | Regeneron Pharmaceuticals Inc. | Thermo Fisher Scientific Inc. | Vertex Pharmaceuticals Inc. | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 24, 2026 | 16.79 | 94.06 | 25.81 | 17.30 | 40.93 | 47.45 | 21.54 | 21.66 | 19.83 | 18.19 | 28.82 | 31.58 |
| Feb 25, 2025 | 13.49 | 79.59 | 38.24 | — | 38.12 | 77.63 | 296.57 | 26.92 | 18.42 | 17.76 | 32.03 | — |
| Feb 26, 2024 | 893.99 | 63.84 | 23.14 | 12.27 | 39.09 | 135.24 | 16.17 | 10.73 | 73.42 | 25.99 | 35.65 | 30.42 |
| Feb 24, 2023 | 19.21 | 22.62 | 19.56 | 23.97 | 25.65 | 50.08 | 22.68 | 22.97 | 7.58 | 19.68 | 30.55 | 23.02 |
| Feb 25, 2022 | 14.78 | 22.07 | 21.05 | 20.92 | 29.94 | 40.66 | 12.36 | 20.93 | 11.76 | 8.37 | 27.35 | 26.55 |
| Feb 25, 2021 | 26.72 | 40.17 | 18.82 | — | 44.49 | 31.95 | 641.48 | 28.92 | 19.62 | 15.09 | 27.89 | 20.18 |
| Feb 26, 2020 | 20.60 | 17.82 | 17.07 | 41.99 | 38.34 | 16.19 | 16.45 | 25.99 | 11.63 | 19.86 | 33.36 | 52.90 |
| Feb 27, 2019 | 33.46 | 20.60 | 14.01 | 16.81 | 29.77 | 39.13 | 15.26 | 23.74 | 21.58 | 18.17 | 35.19 | 22.59 |
| Feb 27, 2018 | 61.63 | 35.47 | 64.06 | 103.55 | 27.25 | — | 22.75 | 268.10 | 9.99 | 28.99 | 37.66 | 155.08 |
| Feb 28, 2017 | 46.14 | 16.54 | 16.03 | 20.56 | 23.02 | 32.39 | 6.83 | 20.08 | 28.10 | 42.64 | 30.45 | — |
| Feb 26, 2016 | 31.64 | 17.01 | 15.95 | 64.22 | 17.85 | 33.35 | 6.75 | 18.80 | 26.37 | 60.50 | 26.19 | — |
| Feb 27, 2015 | 13.94 | 55.08 | 22.96 | 49.80 | 23.69 | 33.06 | 12.85 | 17.15 | 23.03 | 118.44 | 27.26 | — |
| Feb 27, 2014 | 37.83 | 19.64 | 18.69 | 35.01 | 19.74 | 13.88 | 42.00 | 18.72 | 9.32 | 77.00 | 38.43 | — |
| Feb 28, 2013 | 20.94 | 11.51 | 15.68 | 30.56 | 17.73 | 14.99 | 25.20 | 19.64 | 13.51 | 21.42 | 22.54 | — |
| Feb 28, 2012 | 18.63 | — | 14.61 | 15.07 | 16.92 | 10.42 | 12.20 | 18.48 | 15.99 | — | 15.58 | 267.42 |
| Feb 28, 2011 | 116.63 | — | 10.53 | 13.99 | 18.29 | 7.86 | 10.68 | 12.23 | 18.63 | — | 20.87 | — |
| Mar 1, 2010 | 9.00 | — | 12.10 | 4.03 | 20.93 | 9.18 | 16.29 | 14.22 | 16.41 | — | 23.49 | — |
| Feb 27, 2009 | 6.53 | — | 12.06 | 7.68 | 12.56 | — | 20.29 | 11.67 | 10.25 | — | 15.25 | — |
| Feb 28, 2008 | 29.88 | — | 15.64 | 20.60 | 17.35 | 19.26 | 25.19 | 17.07 | 18.51 | — | 30.76 | — |
| Feb 28, 2007 | 21.57 | — | 25.43 | 34.64 | 19.65 | 22.40 | — | 17.02 | 9.18 | — | 113.28 | — |
| Mar 13, 2006 | 16.62 | — | 23.70 | 14.96 | 21.38 | 31.90 | 34.15 | 16.95 | 23.92 | — | 25.36 | — |
Based on: 10-K (reporting date: 2025-12-31), 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/E, long-term trends, comparison to sector (pharmaceuticals, biotechnology & life sciences)
| Merck & Co. Inc. | Pharmaceuticals, Biotechnology & Life Sciences | |
|---|---|---|
| Feb 24, 2026 | 16.79 | 28.98 |
| Feb 25, 2025 | 13.49 | 45.15 |
| Feb 26, 2024 | 893.99 | 32.80 |
| Feb 24, 2023 | 19.21 | 20.23 |
| Feb 25, 2022 | 14.78 | 19.27 |
| Feb 25, 2021 | 26.72 | 34.89 |
| Feb 26, 2020 | 20.60 | 21.03 |
| Feb 27, 2019 | 33.46 | 22.89 |
| Feb 27, 2018 | 61.63 | 35.21 |
| Feb 28, 2017 | 46.14 | 20.62 |
| Feb 26, 2016 | 31.64 | 19.37 |
| Feb 27, 2015 | 13.94 | 21.40 |
| Feb 27, 2014 | 37.83 | 19.54 |
| Feb 28, 2013 | 20.94 | 17.56 |
| Feb 28, 2012 | 18.63 | 16.42 |
| Feb 28, 2011 | 116.63 | 16.11 |
| Mar 1, 2010 | 9.00 | 11.66 |
| Feb 27, 2009 | 6.53 | 12.21 |
| Feb 28, 2008 | 29.88 | 20.04 |
| Feb 28, 2007 | 21.57 | 17.46 |
| Mar 13, 2006 | 16.62 | 20.94 |
Based on: 10-K (reporting date: 2025-12-31), 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)
Merck & Co. Inc., P/E, long-term trends, comparison to industry (health care)
| Merck & Co. Inc. | Health Care | |
|---|---|---|
| Feb 24, 2026 | 16.79 | 28.31 |
| Feb 25, 2025 | 13.49 | 38.03 |
| Feb 26, 2024 | 893.99 | 30.62 |
| Feb 24, 2023 | 19.21 | 351,256.81 |
| Feb 25, 2022 | 14.78 | 21.55 |
| Feb 25, 2021 | 26.72 | 32.22 |
| Feb 26, 2020 | 20.60 | 22.09 |
| Feb 27, 2019 | 33.46 | 24.32 |
| Feb 27, 2018 | 61.63 | 33.04 |
| Feb 28, 2017 | 46.14 | 21.90 |
| Feb 26, 2016 | 31.64 | 19.53 |
| Feb 27, 2015 | 13.94 | 21.38 |
| Feb 27, 2014 | 37.83 | 18.67 |
| Feb 28, 2013 | 20.94 | 15.77 |
| Feb 28, 2012 | 18.63 | 15.79 |
| Feb 28, 2011 | 116.63 | 15.12 |
| Mar 1, 2010 | 9.00 | 11.71 |
| Feb 27, 2009 | 6.53 | 13.07 |
| Feb 28, 2008 | 29.88 | 19.29 |
| Feb 28, 2007 | 21.57 | 18.61 |
| Mar 13, 2006 | 16.62 | 21.71 |
Based on: 10-K (reporting date: 2025-12-31), 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).