Merck KGaA (MRK.DE) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-38.6%

€91.73

vs €149.50 price

Levered DCF

€71.51

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

3.17

Safe zone

Rating

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	20.43×	21.89×	22.17×	23.65×	32.29×	30.71×	34.65×	34.76×
P/B	1.86×	2.03×	2.35×	3.03×	4.63×	3.6×	2.56×	2.28×
P/S	2.53×	2.88×	2.98×	3.54×	5.01×	3.48×	2.84×	2.65×
EV / EBITDA	11.47×	12.42×	12.79×	13.96×	18.19×	14.66×	14.8×	12.88×
Gross margin	56.4%	56.5%	55.6%	57.8%	58.9%	56.9%	56.7%	56.7%
Operating margin	19.3%	20.6%	19.3%	22.5%	21.8%	18.0%	12.4%	11.8%
Net margin	12.4%	13.1%	13.5%	15.0%	15.5%	11.3%	8.2%	7.6%
Current ratio	1.46×	1.19×	1.42×	1.28×	1.05×	1.01×	0.76×	1.08×
Debt / equity	0.42×	0.34×	0.37×	0.4×	0.5×	0.71×	0.73×	0.51×
Interest coverage	15.52×	20.7×	15.85×	25.75×	17.55×	8.14×	4.2×	6.9×
Dividend yield	1.9%	0.5%	1.8%	1.2%	0.8%	1.1%	1.5%	1.9%
Payout ratio	39.8%	10.2%	40.8%	28.7%	24.5%	34.2%	51.3%	66.8%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	9.1%	9.3%	10.6%	12.8%	14.3%	11.7%	7.4%	6.6%
Return on invested capital	7.3%	7.9%	8.1%	9.7%	8.9%	6.8%	4.1%	4.3%
Return on assets	5.0%	5.4%	5.8%	6.9%	6.7%	4.8%	3.0%	3.1%
Free cash flow yield	4.4%	3.9%	2.8%	3.1%	3.2%	3.1%	4.0%	3.1%
Earnings yield	4.9%	4.6%	4.5%	4.2%	3.1%	3.3%	2.9%	2.9%
Enterprise value	€62.5B	€68.9B	€70.6B	€87.7B	€107.9B	€72B	€58.4B	€45.9B
Net debt / EBITDA	1.69×	1.46×	1.44×	1.43×	1.56×	2.23×	3.19×	1.86×
Cash conversion cycle (days)	207	189	181	186	175	173	142	130