Merck & Co Inc PEG Ratio
Data as of September 29, 2026
PEG Ratio
2.90
PE Ratio (TTM)
115.70
EPS (TTM)
$1.25
Sector
Pharmaceuticals
How It's Calculated
2.90 = 115.70 ÷ Growth Rate
What This Means
Merck & Co Inc's PEG ratio of 2.90 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 $366.61B, it ranks as a mega-cap stock — one of the largest publicly traded companies.
Shares recently traded near $148.69, within a 52-week range of $77.58 to $156.92 (-5.2% from the high, +91.7% from the low). Beta of 0.14 indicates relatively lower volatility versus the market.
Trailing profit margin is about 4.8%, signaling modest profitability that investors should weigh against growth plans.
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 2.90 can be compared with peers such as LLY (1.34), JNJ (2.42), PFE (-5.20). 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 0.14 suggests lower-than-market price sensitivity.
- Trailing profit margin of 4.8% provides context for how much earnings support the headline multiple.
Related Tools & Guides
Explore calculators and guides connected to this metric, or view all metrics for MRK.
Learn the full workflow
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Frequently Asked Questions
What is MRK's PEG ratio?
PEG adjusts PE for expected earnings growth: PEG ≈ PE ÷ earnings growth rate. Merck & Co Inc's PEG of 2.90 is a shorthand for growth-at-a-reasonable-price comparisons.
Does PEG suggest growth at a reasonable price?
PEG above 1.5 (2.90) may mean the market prices in high growth — or that growth estimates lag reality.
What are limitations of PEG for MRK?
PEG depends on a single growth estimate, ignores balance sheet risk, and can mislead when earnings are volatile. Use it with PE, margins, and Pharmaceuticals peers — not as a standalone verdict.
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