Merck & Co. Inc., current enterprise value calculation

Current share price (P)	$80.90
No. shares of common stock outstanding	2,511,031,253
US$ in millions
Common equity (market value)¹	203,142)
Add: Noncontrolling interests (per books)	59)
Total equity	203,201)
Add: Loans payable and current portion of long-term debt (per books)	2,649)
Add: Long-term debt, excluding current portion (per books)	34,462)
Total equity and debt	240,312)
Less: Cash and cash equivalents	13,242)
Less: Short-term investments	447)
Enterprise value (EV)	226,623)

¹ Common equity (market value) = Share price × No. shares of common stock outstanding
= 80.90 × 2,511,031,253

Merck & Co. Inc., EV calculation

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Share price^1, 2	$91.43	$128.84	$109.89	$76.32	$74.62
No. shares of common stock outstanding¹	2,526,036,240	2,532,643,872	2,538,592,467	2,527,733,606	2,530,315,668
US$ in millions
Common equity (market value)³	230,955)	326,306)	278,966)	192,917)	188,812)
Add: Noncontrolling interests (book value)	59)	54)	67)	73)	87)
Total equity	231,014)	326,360)	279,033)	192,990)	188,899)
Add: Loans payable and current portion of long-term debt (book value)	2,649)	1,372)	1,946)	2,412)	6,431)
Add: Long-term debt, excluding current portion (book value)	34,462)	33,683)	28,745)	30,690)	25,360)
Total equity and debt	268,125)	361,415)	309,724)	226,092)	220,690)
Less: Cash and cash equivalents	13,242)	6,841)	12,694)	8,096)	8,062)
Less: Short-term investments	447)	252)	498)	—)	—)
Enterprise value (EV)	254,436)	354,322)	296,532)	217,996)	212,628)

¹ Data adjusted for splits and stock dividends.

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

³ 2024 Calculation
Common equity (market value) = Share price × No. shares of common stock outstanding
= 91.43 × 2,526,036,240

Common equity (market value): The common equity shows an upward trend from 2020 through 2023, increasing from approximately 188.8 billion US dollars to 326.3 billion US dollars. However, in 2024, there is a noticeable decline to 231.0 billion US dollars, indicating a reversal after a period of growth.
Total equity: Total equity closely mirrors the trend of common equity, rising steadily from 188.9 billion US dollars in 2020 to 326.4 billion US dollars in 2023. Similarly, this figure decreases significantly to 231.0 billion US dollars in 2024, suggesting a possible contraction in shareholder equity or adjustments in equity components.
Total equity and debt: There is a consistent upward movement in total equity and debt from 220.7 billion US dollars in 2020 to a peak of 361.4 billion US dollars in 2023. The figure then declines substantially to 268.1 billion US dollars in 2024. This pattern indicates the total capitalization expanded over the first four years and contracted in the last year, which may point to changes in leverage or asset valuation.
Enterprise value (EV): The enterprise value follows a similar trajectory as total equity and debt, increasing steadily from 212.6 billion US dollars in 2020 to 354.3 billion US dollars in 2023. In 2024, the EV decreases notably to 254.4 billion US dollars, suggesting a reduction in overall firm valuation that could be linked to market conditions or operational factors affecting investor perceptions.

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Merck & Co. Inc. (NYSE:MRK)

Enterprise Value (EV)