Merck & Co Inc PEG Ratio

Data as of August 04, 2026

How It's Calculated

What This Means

Merck & Co Inc's PEG ratio of 2.73 is above 2, suggesting the stock may be overvalued relative to its growth rate. Investors are paying a premium for each unit of earnings growth.

About Merck & Co Inc

Merck & Co Inc (MRK) operates in the Pharmaceuticals sector, specifically in Pharmaceuticals. With a market capitalization of about $321.57B, it ranks as a mega-cap stock — one of the largest publicly traded companies.

Shares recently traded near $127.77, within a 52-week range of $77.53 to $135.05 (-5.4% from the high, +64.8% from the low). Beta of 0.21 indicates relatively lower volatility versus the market.

Trailing profit margin is about 13.6%, signaling a solid profit margin for its industry.

Understanding This Metric

The PEG ratio adjusts the PE multiple for expected earnings growth, helping compare fast-growing and slow-growing names on a more equal footing. For Merck & Co Inc, a PEG near 1 is often described as fairly valued relative to growth, though the growth estimate itself can change quickly with guidance revisions.

Sector Comparison

Among Pharmaceuticals names on our S&P 100 coverage, Merck & Co Inc's PEG ratio of 2.73 can be compared with peers such as LLY (1.03), JNJ (2.37), PFE (-2.72). Sector context helps interpretation, but each company's growth profile and balance sheet differ — use multiple metrics before drawing conclusions. View all Pharmaceuticals stocks.

Key Takeaways

• MRK is grouped in the Pharmaceuticals sector for peer comparisons.
• Recent beta of 0.21 suggests lower-than-market price sensitivity.
• Trailing profit margin of 13.6% provides context for how much earnings support the headline multiple.

Related Tools & Guides

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