Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Merck & Co. Inc. (NYSE:MRK)

Common Stock Valuation Ratios (Price Multiples)
Quarterly Data

Beginner level

Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).

Historical Valuation Ratios (Summary)

Merck & Co. Inc., historical price multiples (quarterly data)

Microsoft Excel LibreOffice Calc
Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015
Price to earnings (P/E) 19.70 19.18 20.60 22.67 23.07 23.97 33.46 56.97 132.14 96.71 61.63 53.20 33.41 39.83 46.14 30.16 33.87 32.46 31.64 — — —
Price to operating profit (P/OP) 17.23 15.88 17.47 17.97 18.21 19.17 25.08 25.60 34.95 27.63 22.58 38.37 25.21 30.01 33.62 21.16 24.34 20.90 20.29 — — —
Price to sales (P/S) 4.38 4.05 4.33 4.59 4.87 4.67 4.92 4.57 4.29 3.75 3.68 3.80 4.25 4.34 4.54 4.15 4.41 3.80 3.56 — — —
Price to book value (P/BV) 7.47 7.43 7.83 7.87 7.82 7.31 7.79 5.88 5.44 4.54 4.30 3.96 4.31 4.35 4.51 3.78 4.01 3.42 3.15 3.37 3.54 3.57

Based on: 10-Q (filing date: 2020-08-05), 10-Q (filing date: 2020-05-06), 10-K (filing date: 2020-02-26), 10-Q (filing date: 2019-11-05), 10-Q (filing date: 2019-08-06), 10-Q (filing date: 2019-05-08), 10-K (filing date: 2019-02-27), 10-Q (filing date: 2018-11-06), 10-Q (filing date: 2018-08-07), 10-Q (filing date: 2018-05-08), 10-K (filing date: 2018-02-27), 10-Q (filing date: 2017-11-07), 10-Q (filing date: 2017-08-08), 10-Q (filing date: 2017-05-09), 10-K (filing date: 2017-02-28), 10-Q (filing date: 2016-11-07), 10-Q (filing date: 2016-08-08), 10-Q (filing date: 2016-05-09), 10-K (filing date: 2016-02-26), 10-Q (filing date: 2015-11-05), 10-Q (filing date: 2015-08-06), 10-Q (filing date: 2015-05-07).

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. Merck & Co. Inc.’s P/E ratio decreased from Q4 2019 to Q1 2020 but then slightly increased from Q1 2020 to Q2 2020.
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. Merck & Co. Inc.’s P/OP ratio decreased from Q4 2019 to Q1 2020 but then increased from Q1 2020 to Q2 2020 not reaching Q4 2019 level.
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. Merck & Co. Inc.’s P/S ratio decreased from Q4 2019 to Q1 2020 but then increased from Q1 2020 to Q2 2020 exceeding Q4 2019 level.
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company’s required rate of return and its actual rate of return. Merck & Co. Inc.’s P/BV ratio decreased from Q4 2019 to Q1 2020 but then slightly increased from Q1 2020 to Q2 2020.

Price to Earnings (P/E)

Merck & Co. Inc., historical P/E calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015
No. shares of common stock outstanding1 2,529,241,070 2,524,101,191 2,536,268,760 2,545,984,142 2,560,374,643 2,574,644,410 2,581,220,308 2,600,376,500 2,659,525,311 2,690,303,898 2,696,190,502 2,724,436,835 2,727,354,340 2,735,164,510 2,745,571,067 2,757,137,517 2,765,208,203 2,768,025,348 2,775,258,591 2,793,543,137 2,816,635,020 2,825,221,749
Selected Financial Data (US$)
Net income (loss) attributable to Merck & Co., Inc. (in millions) 3,002  3,219  2,357  1,901  2,670  2,915  1,827  1,950  1,707  736  (1,047) (56) 1,946  1,551  (594) 2,184  1,205  1,125  976  1,826  687  953 
Earnings per share (EPS)2 4.14 4.02 3.88 3.66 3.66 3.26 2.41 1.29 0.50 0.59 0.89 1.04 1.87 1.59 1.43 1.99 1.86 1.67 1.60 0.00 0.00 0.00
Share price1, 3 81.64 77.12 79.94 82.92 84.35 78.18 80.62 73.31 66.58 56.76 54.72 55.59 62.32 63.29 65.87 60.05 62.86 54.10 50.64 55.05 58.43 60.30
Valuation Ratio
P/E ratio4 19.70 19.18 20.60 22.67 23.07 23.97 33.46 56.97 132.14 96.71 61.63 53.20 33.41 39.83 46.14 30.16 33.87 32.46 31.64 — — —
Benchmarks
P/E Ratio, Competitors5
Abbott Laboratories 58.36 45.61 41.83 44.92 53.17 52.98 56.47 136.66 122.73 213.07 220.29 45.00 73.04 50.48 55.16 41.28 29.01 22.87 12.83 — — —
AbbVie Inc. 23.92 14.70 17.82 37.29 23.42 21.71 20.60 17.29 22.09 24.91 35.47 22.56 17.16 16.90 16.54 15.75 18.94 18.46 17.01 — — —
Amgen Inc. 19.97 17.70 17.07 15.53 14.06 13.30 14.01 55.79 52.69 52.13 64.06 15.67 15.70 15.16 16.03 14.24 17.32 16.55 15.95 — — —
Biogen Inc. 7.50 8.11 9.97 9.43 8.40 9.32 14.79 19.99 25.30 18.66 28.83 19.16 18.17 17.49 15.41 16.60 16.21 16.57 16.67 — — —
Bristol-Myers Squibb Co. — 144.77 41.99 16.53 11.97 14.51 16.81 56.09 251.38 92.56 103.55 23.59 19.40 18.96 20.56 25.80 43.47 76.64 64.22 — — —
Eli Lilly & Co. 25.59 26.56 16.19 13.31 13.84 18.38 39.13 249.24 — 79.88 — 41.51 37.39 41.29 32.39 33.66 37.12 35.95 33.35 — — —
Gilead Sciences Inc. — 19.58 16.45 30.72 13.61 14.26 15.26 57.34 45.72 24.66 22.75 8.24 7.85 6.92 6.83 6.47 6.49 6.50 6.75 — — —
Illumina Inc. 74.93 47.73 43.43 43.91 46.92 54.25 52.00 62.22 73.58 59.94 44.63 38.26 38.75 36.92 52.01 45.62 56.56 50.34 50.07 — — —
Johnson & Johnson 25.68 23.06 25.99 24.03 21.50 25.68 23.74 243.48 256.64 271.47 268.10 23.75 21.91 20.12 20.08 19.64 22.55 20.29 18.80 — — —
Pfizer Inc. 15.01 13.00 11.63 12.60 16.12 19.69 21.58 10.64 10.66 9.43 9.99 21.39 23.88 27.02 28.10 32.43 30.28 26.41 26.37 — — —
Regeneron Pharmaceuticals Inc. 22.27 28.35 19.86 17.03 15.94 14.56 18.17 21.53 26.96 22.09 28.99 34.90 43.35 47.93 42.64 45.15 61.42 53.53 60.50 — — —
Vertex Pharmaceuticals Inc. 34.05 43.74 52.90 23.44 20.80 20.51 22.59 65.41 108.21 175.96 155.08 193.19 149.56 166.15 — — — — — — — —
Zoetis Inc. 47.41 37.05 45.89 39.46 42.08 35.57 28.68 38.90 39.51 39.53 44.09 35.00 33.42 33.79 31.63 35.08 39.58 62.14 62.14 — — —

Based on: 10-Q (filing date: 2020-08-05), 10-Q (filing date: 2020-05-06), 10-K (filing date: 2020-02-26), 10-Q (filing date: 2019-11-05), 10-Q (filing date: 2019-08-06), 10-Q (filing date: 2019-05-08), 10-K (filing date: 2019-02-27), 10-Q (filing date: 2018-11-06), 10-Q (filing date: 2018-08-07), 10-Q (filing date: 2018-05-08), 10-K (filing date: 2018-02-27), 10-Q (filing date: 2017-11-07), 10-Q (filing date: 2017-08-08), 10-Q (filing date: 2017-05-09), 10-K (filing date: 2017-02-28), 10-Q (filing date: 2016-11-07), 10-Q (filing date: 2016-08-08), 10-Q (filing date: 2016-05-09), 10-K (filing date: 2016-02-26), 10-Q (filing date: 2015-11-05), 10-Q (filing date: 2015-08-06), 10-Q (filing date: 2015-05-07).

1 Data adjusted for splits and stock dividends.

2 Q2 2020 Calculation
EPS = (Net income (loss) attributable to Merck & Co., Inc.Q2 2020 + Net income (loss) attributable to Merck & Co., Inc.Q1 2020 + Net income (loss) attributable to Merck & Co., Inc.Q4 2019 + Net income (loss) attributable to Merck & Co., Inc.Q3 2019) ÷ No. shares of common stock outstanding
= (3,002,000,000 + 3,219,000,000 + 2,357,000,000 + 1,901,000,000) ÷ 2,529,241,070 = 4.14

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

4 Q2 2020 Calculation
P/E ratio = Share price ÷ EPS
= 81.64 ÷ 4.14 = 19.70

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. Merck & Co. Inc.’s P/E ratio decreased from Q4 2019 to Q1 2020 but then slightly increased from Q1 2020 to Q2 2020.

Price to Operating Profit (P/OP)

Merck & Co. Inc., historical P/OP calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015
No. shares of common stock outstanding1 2,529,241,070 2,524,101,191 2,536,268,760 2,545,984,142 2,560,374,643 2,574,644,410 2,581,220,308 2,600,376,500 2,659,525,311 2,690,303,898 2,696,190,502 2,724,436,835 2,727,354,340 2,735,164,510 2,745,571,067 2,757,137,517 2,765,208,203 2,768,025,348 2,775,258,591 2,793,543,137 2,816,635,020 2,825,221,749
Selected Financial Data (US$)
Operating income (in millions) 3,129  3,909  2,567  2,382  3,399  3,255  2,714  2,493  2,038  1,054  1,861  114  2,497  2,061  (725) 2,909  1,523  1,672  1,719  2,227  1,546  1,436 
Operating profit per share2 4.74 4.86 4.57 4.62 4.63 4.08 3.22 2.86 1.91 2.05 2.42 1.45 2.47 2.11 1.96 2.84 2.58 2.59 2.50 0.00 0.00 0.00
Share price1, 3 81.64 77.12 79.94 82.92 84.35 78.18 80.62 73.31 66.58 56.76 54.72 55.59 62.32 63.29 65.87 60.05 62.86 54.10 50.64 55.05 58.43 60.30
Valuation Ratio
P/OP ratio4 17.23 15.88 17.47 17.97 18.21 19.17 25.08 25.60 34.95 27.63 22.58 38.37 25.21 30.01 33.62 21.16 24.34 20.90 20.29 — — —
Benchmarks
P/OP Ratio, Competitors5
Abbott Laboratories 45.19 35.87 34.03 34.32 37.50 36.74 36.64 38.12 38.00 39.99 60.88 47.72 41.32 30.85 24.25 18.51 23.04 20.13 19.80 — — —
AbbVie Inc. 15.23 9.13 10.82 18.43 13.53 17.93 18.35 12.32 14.01 15.78 19.63 14.77 11.57 11.19 10.49 10.48 12.51 12.44 11.61 — — —
Amgen Inc. 15.84 14.22 13.84 12.52 11.35 10.73 11.46 12.13 12.16 11.45 12.71 12.55 12.46 11.99 12.64 11.56 14.06 13.50 13.07 — — —
Biogen Inc. 6.03 6.48 8.34 7.58 6.74 7.43 11.13 10.78 12.80 9.45 13.70 14.01 13.19 12.69 11.08 11.87 11.51 11.89 12.09 — — —
Bristol-Myers Squibb Co. 33.99 27.33 24.42 13.50 10.89 13.68 16.16 19.56 27.48 23.10 28.87 24.60 20.23 19.09 19.79 24.47 43.34 64.30 53.18 — — —
Eli Lilly & Co. 25.58 24.82 27.08 23.37 23.99 38.43 33.99 37.45 47.62 25.86 39.61 33.07 29.23 32.37 25.63 27.59 30.51 28.95 29.86 — — —
Gilead Sciences Inc. — 21.83 20.66 19.07 9.61 10.14 10.15 9.74 9.58 6.83 7.45 6.02 5.82 5.22 5.23 5.08 5.20 5.25 5.50 — — —
Illumina Inc. 60.31 46.36 44.17 46.74 51.96 53.12 48.64 46.46 55.70 44.02 53.47 57.62 58.10 52.79 40.99 34.40 43.07 37.39 37.71 — — —
Johnson & Johnson 19.66 18.67 19.83 17.23 19.08 20.36 18.34 20.42 18.93 18.18 18.94 18.71 17.29 15.95 16.09 16.59 18.63 17.98 16.50 — — —
Pfizer Inc. 18.20 15.97 14.36 14.64 13.82 15.62 17.19 18.14 17.36 15.05 15.62 16.20 16.11 16.34 16.88 16.63 16.98 15.88 15.52 — — —
Regeneron Pharmaceuticals Inc. 23.98 26.60 19.01 16.21 15.41 14.44 17.53 16.43 18.75 14.23 16.71 23.63 29.60 32.24 28.70 29.64 36.67 30.59 30.74 — — —
Vertex Pharmaceuticals Inc. 33.91 40.27 51.98 64.96 52.36 56.45 74.57 66.84 442.93 — 331.55 1,018.05 112.83 99.84 2,143.58 — — — — — — —
Zoetis Inc. 36.24 28.78 35.00 30.23 32.11 27.78 22.59 23.98 23.28 21.51 22.33 21.75 20.64 20.42 18.65 18.87 20.90 28.06 28.09 — — —

Based on: 10-Q (filing date: 2020-08-05), 10-Q (filing date: 2020-05-06), 10-K (filing date: 2020-02-26), 10-Q (filing date: 2019-11-05), 10-Q (filing date: 2019-08-06), 10-Q (filing date: 2019-05-08), 10-K (filing date: 2019-02-27), 10-Q (filing date: 2018-11-06), 10-Q (filing date: 2018-08-07), 10-Q (filing date: 2018-05-08), 10-K (filing date: 2018-02-27), 10-Q (filing date: 2017-11-07), 10-Q (filing date: 2017-08-08), 10-Q (filing date: 2017-05-09), 10-K (filing date: 2017-02-28), 10-Q (filing date: 2016-11-07), 10-Q (filing date: 2016-08-08), 10-Q (filing date: 2016-05-09), 10-K (filing date: 2016-02-26), 10-Q (filing date: 2015-11-05), 10-Q (filing date: 2015-08-06), 10-Q (filing date: 2015-05-07).

1 Data adjusted for splits and stock dividends.

2 Q2 2020 Calculation
Operating profit per share = (Operating incomeQ2 2020 + Operating incomeQ1 2020 + Operating incomeQ4 2019 + Operating incomeQ3 2019) ÷ No. shares of common stock outstanding
= (3,129,000,000 + 3,909,000,000 + 2,567,000,000 + 2,382,000,000) ÷ 2,529,241,070 = 4.74

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

4 Q2 2020 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 81.64 ÷ 4.74 = 17.23

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. Merck & Co. Inc.’s P/OP ratio decreased from Q4 2019 to Q1 2020 but then increased from Q1 2020 to Q2 2020 not reaching Q4 2019 level.

Price to Sales (P/S)

Merck & Co. Inc., historical P/S calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015
No. shares of common stock outstanding1 2,529,241,070 2,524,101,191 2,536,268,760 2,545,984,142 2,560,374,643 2,574,644,410 2,581,220,308 2,600,376,500 2,659,525,311 2,690,303,898 2,696,190,502 2,724,436,835 2,727,354,340 2,735,164,510 2,745,571,067 2,757,137,517 2,765,208,203 2,768,025,348 2,775,258,591 2,793,543,137 2,816,635,020 2,825,221,749
Selected Financial Data (US$)
Sales (in millions) 10,872  12,057  11,867  12,397  11,760  10,816  10,998  10,794  10,465  10,037  10,433  10,325  9,930  9,434  10,115  10,536  9,844  9,312  10,215  10,073  9,785  9,425 
Sales per share2 18.66 19.05 18.47 18.06 17.33 16.73 16.39 16.05 15.51 15.14 14.88 14.61 14.67 14.60 14.50 14.47 14.26 14.23 14.23 0.00 0.00 0.00
Share price1, 3 81.64 77.12 79.94 82.92 84.35 78.18 80.62 73.31 66.58 56.76 54.72 55.59 62.32 63.29 65.87 60.05 62.86 54.10 50.64 55.05 58.43 60.30
Valuation Ratio
P/S ratio4 4.38 4.05 4.33 4.59 4.87 4.67 4.92 4.57 4.29 3.75 3.68 3.80 4.25 4.34 4.54 4.15 4.41 3.80 3.56 — — —
Benchmarks
P/S Ratio, Competitors5
Abbott Laboratories 5.77 5.09 4.83 4.72 4.98 4.52 4.37 3.98 3.84 3.57 3.84 3.77 3.62 3.40 3.70 2.73 3.21 2.74 2.78 — — —
AbbVie Inc. 4.59 3.64 4.22 3.69 2.96 3.56 3.58 4.06 4.60 5.37 6.67 5.50 4.25 4.07 3.84 3.79 4.38 4.25 3.83 — — —
Amgen Inc. 6.30 5.96 6.03 5.61 5.00 4.78 5.22 5.56 5.65 5.27 5.82 5.85 5.85 5.48 5.65 5.01 5.97 5.60 5.28 — — —
Biogen Inc. 3.07 3.31 4.08 3.57 3.16 3.15 4.87 4.81 5.83 4.39 5.96 5.64 5.11 5.28 4.98 5.65 5.51 5.60 5.49 — — —
Bristol-Myers Squibb Co. 3.97 4.45 5.52 3.87 3.11 3.21 3.67 3.64 4.38 4.04 5.02 4.85 4.40 4.59 4.72 4.70 7.08 7.13 6.07 — — —
Eli Lilly & Co. 6.26 6.36 6.03 4.67 4.67 4.80 5.15 4.62 4.34 3.85 3.71 4.11 4.16 4.18 4.18 3.95 4.44 4.13 4.02 — — —
Gilead Sciences Inc. 3.95 4.34 4.00 3.76 3.69 3.84 3.84 4.17 4.43 3.52 4.10 3.54 3.42 3.05 3.08 3.13 3.32 3.48 3.80 — — —
Illumina Inc. 15.50 12.64 12.28 12.35 12.92 13.59 12.89 13.12 15.36 11.58 11.77 11.53 11.65 11.27 10.03 8.53 10.58 9.26 10.41 — — —
Johnson & Johnson 4.84 4.78 4.79 4.16 4.32 4.62 4.45 4.61 4.36 4.29 4.56 5.06 4.93 4.60 4.62 4.37 4.78 4.49 4.13 — — —
Pfizer Inc. 4.32 4.05 3.66 3.85 3.80 4.20 4.49 4.75 4.51 3.89 4.05 4.00 3.80 3.75 3.84 3.82 4.08 3.95 3.76 — — —
Regeneron Pharmaceuticals Inc. 8.31 8.10 5.34 4.79 4.56 5.11 6.62 6.08 6.92 5.20 5.92 8.09 9.56 9.27 7.86 7.61 9.82 8.95 9.38 — — —
Vertex Pharmaceuticals Inc. 13.11 13.71 14.95 13.89 13.34 13.54 15.54 14.96 17.14 16.47 16.42 16.47 18.23 14.60 12.51 11.33 15.62 15.73 20.38 — — —
Zoetis Inc. 12.09 9.42 11.00 9.37 9.57 8.35 7.03 7.92 7.88 7.10 7.18 6.40 5.85 5.83 5.31 4.95 5.21 4.87 4.42 — — —

Based on: 10-Q (filing date: 2020-08-05), 10-Q (filing date: 2020-05-06), 10-K (filing date: 2020-02-26), 10-Q (filing date: 2019-11-05), 10-Q (filing date: 2019-08-06), 10-Q (filing date: 2019-05-08), 10-K (filing date: 2019-02-27), 10-Q (filing date: 2018-11-06), 10-Q (filing date: 2018-08-07), 10-Q (filing date: 2018-05-08), 10-K (filing date: 2018-02-27), 10-Q (filing date: 2017-11-07), 10-Q (filing date: 2017-08-08), 10-Q (filing date: 2017-05-09), 10-K (filing date: 2017-02-28), 10-Q (filing date: 2016-11-07), 10-Q (filing date: 2016-08-08), 10-Q (filing date: 2016-05-09), 10-K (filing date: 2016-02-26), 10-Q (filing date: 2015-11-05), 10-Q (filing date: 2015-08-06), 10-Q (filing date: 2015-05-07).

1 Data adjusted for splits and stock dividends.

2 Q2 2020 Calculation
Sales per share = (SalesQ2 2020 + SalesQ1 2020 + SalesQ4 2019 + SalesQ3 2019) ÷ No. shares of common stock outstanding
= (10,872,000,000 + 12,057,000,000 + 11,867,000,000 + 12,397,000,000) ÷ 2,529,241,070 = 18.66

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

4 Q2 2020 Calculation
P/S ratio = Share price ÷ Sales per share
= 81.64 ÷ 18.66 = 4.38

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. Merck & Co. Inc.’s P/S ratio decreased from Q4 2019 to Q1 2020 but then increased from Q1 2020 to Q2 2020 exceeding Q4 2019 level.

Price to Book Value (P/BV)

Merck & Co. Inc., historical P/BV calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015
No. shares of common stock outstanding1 2,529,241,070 2,524,101,191 2,536,268,760 2,545,984,142 2,560,374,643 2,574,644,410 2,581,220,308 2,600,376,500 2,659,525,311 2,690,303,898 2,696,190,502 2,724,436,835 2,727,354,340 2,735,164,510 2,745,571,067 2,757,137,517 2,765,208,203 2,768,025,348 2,775,258,591 2,793,543,137 2,816,635,020 2,825,221,749
Selected Financial Data (US$)
Total Merck & Co., Inc. stockholders’ equity (in millions) 27,642  26,205  25,907  26,838  27,635  27,539  26,701  32,422  32,529  33,668  34,336  38,248  39,463  39,837  40,088  43,744  43,357  43,806  44,676  45,587  46,448  47,765 
Book value per share (BVPS)2 10.93 10.38 10.21 10.54 10.79 10.70 10.34 12.47 12.23 12.51 12.74 14.04 14.47 14.56 14.60 15.87 15.68 15.83 16.10 16.32 16.49 16.91
Share price1, 3 81.64 77.12 79.94 82.92 84.35 78.18 80.62 73.31 66.58 56.76 54.72 55.59 62.32 63.29 65.87 60.05 62.86 54.10 50.64 55.05 58.43 60.30
Valuation Ratio
P/BV ratio4 7.47 7.43 7.83 7.87 7.82 7.31 7.79 5.88 5.44 4.54 4.30 3.96 4.31 4.35 4.51 3.78 4.01 3.42 3.15 3.37 3.54 3.57
Benchmarks
P/BV Ratio, Competitors5
Abbott Laboratories 5.94 5.40 4.96 4.65 4.86 4.49 4.38 3.94 3.72 3.23 3.40 2.95 2.71 2.42 3.76 2.72 3.20 2.70 2.68 3.19 3.27 3.17
AbbVie Inc. 11.31 — — — — — — — — 44.74 36.95 22.43 18.89 21.33 21.24 14.80 19.21 21.77 22.17 21.56 20.64 75.48
Amgen Inc. 13.67 14.33 13.84 11.47 10.37 9.92 9.41 8.56 8.35 7.41 5.02 3.98 4.05 3.91 4.14 3.51 4.27 4.16 3.94 4.38 4.87 4.66
Biogen Inc. 3.93 3.80 4.40 3.63 3.44 3.15 5.03 4.63 6.13 3.94 5.80 5.19 5.16 5.30 4.70 5.32 5.43 5.93 6.31 5.83 5.61 8.10
Bristol-Myers Squibb Co. 2.82 2.77 2.80 5.30 4.63 4.91 5.89 5.89 7.67 6.65 8.88 6.75 6.05 6.36 5.66 5.56 8.36 8.38 7.04 7.39 7.52 6.92
Eli Lilly & Co. 35.12 47.73 51.67 31.28 39.03 46.37 12.87 8.58 8.96 6.18 7.33 6.20 6.49 6.43 6.33 5.28 6.25 5.55 5.51 5.94 6.39 5.35
Gilead Sciences Inc. 4.79 4.40 3.93 4.02 3.58 3.83 3.89 3.98 4.66 4.15 5.15 3.85 4.23 4.28 4.88 5.78 6.83 8.42 6.59 9.02 10.69 8.88
Illumina Inc. 11.38 9.70 9.43 9.62 10.16 11.58 11.43 12.15 14.64 11.30 11.79 10.48 10.67 10.71 10.95 9.03 11.90 10.48 12.50 11.25 17.69 16.98
Johnson & Johnson 6.19 6.46 6.61 5.84 5.78 6.39 6.08 5.81 5.60 5.34 5.79 5.08 4.98 4.72 4.72 4.30 4.68 4.34 4.07 3.91 3.90 4.09
Pfizer Inc. 3.31 3.16 3.00 3.14 3.42 3.84 3.80 3.55 3.44 2.80 2.98 3.45 3.41 3.37 3.40 3.21 3.40 3.19 2.84 3.15 3.24 3.07
Regeneron Pharmaceuticals Inc. 7.34 5.33 3.79 3.48 3.38 3.74 5.07 4.92 5.97 4.80 5.66 7.37 9.07 9.49 8.58 8.02 11.19 10.54 10.53 17.80 18.04 16.29
Vertex Pharmaceuticals Inc. 9.42 10.23 10.23 9.57 9.09 9.36 10.68 14.56 16.73 16.56 20.14 21.11 23.25 19.64 18.42 18.42 24.79 21.23 22.38 33.24 38.35 31.53
Zoetis Inc. 25.71 21.68 25.42 21.53 24.00 21.31 18.74 21.38 22.36 19.72 21.52 16.49 17.11 17.96 17.46 15.25 18.64 20.16 19.72 18.42 20.48 17.82

Based on: 10-Q (filing date: 2020-08-05), 10-Q (filing date: 2020-05-06), 10-K (filing date: 2020-02-26), 10-Q (filing date: 2019-11-05), 10-Q (filing date: 2019-08-06), 10-Q (filing date: 2019-05-08), 10-K (filing date: 2019-02-27), 10-Q (filing date: 2018-11-06), 10-Q (filing date: 2018-08-07), 10-Q (filing date: 2018-05-08), 10-K (filing date: 2018-02-27), 10-Q (filing date: 2017-11-07), 10-Q (filing date: 2017-08-08), 10-Q (filing date: 2017-05-09), 10-K (filing date: 2017-02-28), 10-Q (filing date: 2016-11-07), 10-Q (filing date: 2016-08-08), 10-Q (filing date: 2016-05-09), 10-K (filing date: 2016-02-26), 10-Q (filing date: 2015-11-05), 10-Q (filing date: 2015-08-06), 10-Q (filing date: 2015-05-07).

1 Data adjusted for splits and stock dividends.

2 Q2 2020 Calculation
BVPS = Total Merck & Co., Inc. stockholders’ equity ÷ No. shares of common stock outstanding
= 27,642,000,000 ÷ 2,529,241,070 = 10.93

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

4 Q2 2020 Calculation
P/BV ratio = Share price ÷ BVPS
= 81.64 ÷ 10.93 = 7.47

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company’s required rate of return and its actual rate of return. Merck & Co. Inc.’s P/BV ratio decreased from Q4 2019 to Q1 2020 but then slightly increased from Q1 2020 to Q2 2020.