Merck & Co. Inc., current enterprise value calculation

Current share price (P)	$120.29
No. shares of common stock outstanding	2,472,392,003
US$ in millions
Common equity (market value)¹	297,404)
Add: Noncontrolling interests (per books)	56)
Total equity	297,460)
Add: Loans payable and current portion of long-term debt (per books)	2,589)
Add: Long-term debt, excluding current portion (per books)	46,750)
Total equity and debt	346,799)
Less: Cash and cash equivalents	14,565)
Less: Short-term investments	—)
Enterprise value (EV)	332,234)

Based on: 10-K (reporting date: 2025-12-31).

¹ Common equity (market value) = Share price × No. shares of common stock outstanding
= 120.29 × 2,472,392,003

Merck & Co. Inc., EV calculation

	Dec 31, 2025	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
Share price^1, 2	$123.93	$91.43	$128.84	$109.89	$76.32
No. shares of common stock outstanding¹	2,472,392,003	2,526,036,240	2,532,643,872	2,538,592,467	2,527,733,606
US$ in millions
Common equity (market value)³	306,404)	230,955)	326,306)	278,966)	192,917)
Add: Noncontrolling interests (book value)	56)	59)	54)	67)	73)
Total equity	306,460)	231,014)	326,360)	279,033)	192,990)
Add: Loans payable and current portion of long-term debt (book value)	2,589)	2,649)	1,372)	1,946)	2,412)
Add: Long-term debt, excluding current portion (book value)	46,750)	34,462)	33,683)	28,745)	30,690)
Total equity and debt	355,799)	268,125)	361,415)	309,724)	226,092)
Less: Cash and cash equivalents	14,565)	13,242)	6,841)	12,694)	8,096)
Less: Short-term investments	—)	447)	252)	498)	—)
Enterprise value (EV)	341,234)	254,436)	354,322)	296,532)	217,996)

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).

¹ Data adjusted for splits and stock dividends.

² Closing price as at the filing date of Merck & Co. Inc. Annual Report.

³ 2025 Calculation
Common equity (market value) = Share price × No. shares of common stock outstanding
= 123.93 × 2,472,392,003

The enterprise value exhibited a generally increasing trend from 2021 to 2023, followed by a decrease in 2024 and a subsequent increase in 2025. A closer examination of the underlying components reveals further insights into these fluctuations.

Enterprise Value Trend: Enterprise value increased from US$217,996 million in 2021 to US$354,322 million in 2023, representing a substantial growth of approximately 62.6%. This growth was interrupted in 2024, with a decrease to US$254,436 million. However, the value recovered somewhat in 2025, rising to US$341,234 million.
Relationship between Market Capitalization and Enterprise Value: Common equity (market value) and enterprise value moved in a similar pattern over the period. Both experienced growth from 2021 to 2023, a decline in 2024, and a recovery in 2025. However, enterprise value consistently exceeded market capitalization throughout the observed timeframe, indicating the significant role of debt in the company’s capital structure.
Total Equity and Debt: Total equity and debt increased steadily from US$226,092 million in 2021 to US$361,415 million in 2023. Similar to enterprise value, this metric decreased in 2024 to US$268,125 million before increasing again to US$355,799 million in 2025. The consistent growth in total equity and debt suggests an expansion of the company’s financing base.
Equity Component: Total equity closely mirrored the trend of common equity (market value), with both values remaining nearly identical across all reported years. This suggests that other equity components, such as preferred stock or additional paid-in capital, remained relatively stable during the period.

The fluctuations in enterprise value appear to be influenced by changes in both equity markets and debt levels. The decrease observed in 2024 warrants further investigation to determine the specific factors contributing to this decline, such as changes in debt financing, market conditions, or company performance. The subsequent recovery in 2025 suggests a potential stabilization or positive shift in these factors.

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Merck & Co. Inc. (NYSE:MRK)

Enterprise Value (EV)

Current Enterprise Value (EV)

Historical Enterprise Value (EV)