P/E ratio for Merck (MRK)
P/E ratio as of March 2023 (TTM): 17.5
According to Merck's latest financial reports and stock price the company's current price-to-earnings ratio (TTM) is 17.5025. 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 |
|---|---|---|
| 2021 | 14.8 | -49.27% |
| 2020 | 29.2 | 29.47% |
| 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 |
P/E ratio for similar companies or competitors
| Company | P/E ratio | P/E ratio differencediff. | Country |
|---|---|---|---|
 Johnson & Johnson JNJ | 21.1 | 20.63% | 🇺🇸 USA |
 Novartis NVS | 8.55 | -51.17% | 🇨🇭 Switzerland |
 Pfizer PFE | 7.66 | -56.25% | 🇺🇸 USA |
 Abbott Laboratories ABT | 22.9 | 30.83% | 🇺🇸 USA |
 Eli Lilly LLY | 49.3 | 181.86% | 🇺🇸 USA |
 Amgen AMGN | 18.6 | 6.14% | 🇺🇸 USA |
 Sanofi SNY | 14.7 | -15.85% | 🇫🇷 France |
 Bristol-Myers Squibb BMY | 21.6 | 23.56% | 🇺🇸 USA |
 GlaxoSmithKline GSK | 4.22 | -75.87% | 🇬🇧 UK |
 Teva Pharmaceutical Industries TEVA | -7.59 | -143.34% | 🇮🇱 Israel |
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.