According to Merck's latest financial reports and stock price the company's current price-to-earnings ratio (TTM) is 43.2238. At the end of 2022 the company had a P/E ratio of 19.4.
Year | P/E ratio | Change |
---|---|---|
2022 | 19.4 | 30.52% |
2021 | 14.8 | -46.83% |
2020 | 27.9 | 23.54% |
2019 | 22.6 | -27.17% |
2018 | 31.0 | -45.92% |
2017 | 57.4 | 110.42% |
2016 | 27.3 | -14.4% |
2015 | 31.8 | 144.67% |
2014 | 13.0 | -59.55% |
2013 | 32.2 | 79.31% |
2012 | 17.9 | 1.85% |
2011 | 17.6 | -85.61% |
2010 | 122 | 1892.66% |
2009 | 6.14 | -23.13% |
2008 | 7.99 | -114.99% |
2007 | -53.3 | -361.43% |
2006 | 20.4 | 41.77% |
2005 | 14.4 | 23.83% |
2004 | 11.6 | -22% |
2003 | 14.9 | -12.32% |
2002 | 17.0 | -3.72% |
2001 | 17.6 |
The Price/Earnings ratio measures the relationship between a company's stock price and its earnings per share. A low but positive P/E ratio stands for a company that is generating high earnings compared to its current valuation and might be undervalued. A company with a high negative (near 0) P/E ratio stands for a company that is generating heavy losses compared to its current valuation.
Companies with a P/E ratio over 30 or a negative one are generaly seen as "growth stocks" meaning that investors typically expect the company to grow or to become profitable in the future.
Companies with a positive P/E ratio bellow 10 are generally seen as "value stocks" meaning that the company is already very profitable and unlikely to strong growth in the future.