Merck
MRK
#33
Rank
$223.61 B
Marketcap
$88.27
Share price
0.95%
Change (1 day)
9.43%
Change (1 year)

P/E ratio for Merck (MRK)

P/E ratio as of October 2022 (TTM): 13.3

According to Merck's latest financial reports and stock price the company's current price-to-earnings ratio (TTM) is 13.3293. At the end of 2021 the company had a P/E ratio of 14.8.

P/E ratio history for Merck from 2001 to 2022

PE ratio at the end of each year

Year P/E ratio Change
202114.8-46.83%
202027.923.54%
201922.6-27.17%
201831.0-45.92%
201757.4110.42%
201627.3-14.4%
201531.8144.67%
201413.0-59.55%
201332.279.31%
201217.91.85%
201117.6

How to read a P/E ratio?

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.