Merck & Co., Inc. (MRK) Stock

Merck & Co., Inc. (MRK) is a Healthcare stock trading at $127.50 (as of 2026-07-17), with a market capitalization of $314.90B and a trailing P/E of 35.2. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

Merck & Co., Inc. is a global healthcare company organized into the Pharmaceutical and Animal Health segments. It develops and markets human pharmaceutical products and vaccines, and veterinary medicines, vaccines, and health management and identification/traceability offerings, serving wholesalers and retailers, healthcare providers and institutions, and veterinarians and animal producers.

Understand Merck & Co., Inc.: how it makes money

Merck sells healthcare products, including human pharmaceuticals across areas like oncology and vaccines, and veterinary pharmaceuticals and related health management solutions.

Keytruda is the core profit driver because it is the largest single revenue stream (Keytruda revenue is 8.1B out of 16.3B total revenue), making performance across its oncology portfolio structurally important to results.

Revenue by segment (latest quarter)
Pharma$16.3B
AnimalHealth$0.0B

Business quality (Weak): Strong visibility into Keytruda and several product revenues, but limited segment detail is provided (Animal Health sales are shown as 0.0B in the data supplied), so segment-level interpretation is constrained.

Valuation: At 32× earnings, MRK trades 90% above the Pharmaceutical Products average (17×). Note: one-time items can distort reported P/E.

Bull case

  • Oncology concentration in a major product: Keytruda revenue is 8.1B and the Keytruda family totals about 8.0B in the provided figures, supporting a large, identifiable sales engine within the Pharmaceutical segment.
  • Portfolio breadth across multiple treatment areas: The Pharmaceutical segment covers oncology and multiple other areas (including hospital acute care, immunology, neuroscience, virology, cardiovascular, diabetes, and vaccines), which can reduce reliance on a single clinical area.

Bear case

  • Profitability is currently negative at the operating level: Operating margin is -21.7% in the latest period, indicating that operating expenses exceed gross profit.
  • Earnings sensitivity to Keytruda outcomes: Because Keytruda is the largest single revenue line (8.1B), any step-change in Keytruda-related sales would have an outsized impact on company results.
Valuation — source: SEC EDGAR (first-party)
Price$127.50
Market Cap$314.90B
P/E Ratio35.2
EV / EBITDA24.3
Price / Book6.86
Price / Sales4.79
FCF Yield4.5%
DCF Value (model)$63.47
DCF Upside vs Price-50.2%
Profitability & Growth — source: SEC EDGAR
Revenue (TTM)$65.01B
Net Margin28.1%
Revenue Growth (YoY)4.9%
EPS Growth (YoY)-185.6%
FCF Growth (YoY)149.7%
Financial Health — source: SEC EDGAR
Altman Z-Score4.11 (safe)
Piotroski F-Score4/9 (moderate)
Valuation vs Sector & Industry
Stock P/E35.2
Sector P/E (Healthcare)21.4
Industry P/E (Pharmaceutical Products)17.0
vs Sector64.4%
vs Industry107.7%
Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Insider Sells (12mo)11
Top Institutional HolderBlackRock, Inc. ($27.18B)
Institutional Holders Tracked10
Congressional Trades (recent)10
Company
SectorHealthcare
IndustryPharmaceutical Products
CEORobert Davis
Employees73,000
CountryUS
IPO Date1978-01-13

Related Companies (Business model: Big Pharma / Branded Drugs; 8 closest by market cap; US-domiciled)

  • Eli Lilly and Company (LLY)
  • Johnson & Johnson (JNJ)
  • AbbVie Inc. (ABBV)
  • Abbott Laboratories (ABT)
  • Pfizer Inc. (PFE)
  • Bristol-Myers Squibb Company (BMY)
  • Vertex Pharmaceuticals Incorporated (VRTX)
  • Regeneron Pharmaceuticals, Inc. (REGN)
MRK earnings history · MRK institutional & insider holders · MRK KPIs & operating metrics · Congress trades · Insider trades · Short interest · Stock screener

Data as of 2026-07-17.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.