Ratios in Focus: Analyzing Merck & Co Inc (MRK)’s Price-to-Cash and Price-to-Free Cash Flow

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In the latest session, Merck & Co Inc (NYSE: MRK) closed at $130.52 up 0.83% from its previous closing price of $129.45. In other words, the price has increased by $0.83 from its previous closing price. On the day, 5.82 million shares were traded. MRK stock price reached its highest trading level at $130.93 during the session, while it also had its lowest trading level at $128.9.


For a deeper understanding of Merck & Co Inc’s stock, let’s take a closer look at its various ratios. It provided that stocks Price–to–Cash (P/C) ratio for the trailing twelve months (TTM) is standing at 57.89 whereas its Price-to-Free Cash Flow (P/FCF) for the term is 29.94. For the most recent quarter (mrq), Quick Ratio is recorded 0.99 and its Current Ratio is at 1.25. In the meantime, Its Debt-to-Equity ratio is 0.85 whereas as Long-Term Debt/Eq ratio is at 0.77.

On January 04, 2024, TD Cowen Upgraded its rating to Outperform which previously was Market Perform and also upped its target price recommendation from $125 to $135.

On November 09, 2023, Deutsche Bank started tracking the stock assigning a Buy rating and target price of $115.Deutsche Bank initiated its Buy rating on November 09, 2023, with a $115 target price.

Insider Transactions:

Additionally, insider trades can be beneficial to investors who want to learn what the management thinks about stock prices in the future. A recent insider transaction in this stock occurred on Mar 11 ’24 when Merck & Co., Inc. bought 21,397,205 shares for $23.00 per share. The transaction valued at 492,135,715 led to the insider holds 1,000 shares of the business.

Davis Robert M sold 85,021 shares of MRK for $10,661,574 on Feb 14 ’24. The Chairman, CEO & President now owns 348,327 shares after completing the transaction at $125.40 per share. On Feb 14 ’24, another insider, Litchfield Caroline, who serves as the EVP & CFO of the company, sold 38,291 shares for $125.50 each. As a result, the insider received 4,805,520 and left with 50,908 shares of the company.

Valuation Measures:

Investors should consider key stock statistics when deciding whether to invest or divest. In the wake of the recent closing price, MRK now has a Market Capitalization of 330582360064 and an Enterprise Value of 359241875456. As of this moment, Merck’s Price-to-Earnings (P/E) ratio for their current fiscal year is 145.30, and their Forward P/E ratio for the next fiscal year is 13.18. For the stock, the TTM Price-to-Sale (P/S) ratio is 5.41 while its Price-to-Book (P/B) ratio in mrq is 8.19. Its current Enterprise Value per Revenue stands at 5.851 whereas that against EBITDA is 16.937.

Stock Price History:

Over the past 52 weeks, MRK has reached a high of $133.10, while it has fallen to a 52-week low of $99.14. The 50-Day Moving Average of the stock is 1.59%, while the 200-Day Moving Average is calculated to be 12.43%.

Shares Statistics:

For the past three months, MRK has traded an average of 8.40M shares per day and 8999940 over the past ten days. A total of 2.53B shares are outstanding, with a floating share count of 2.53B. Insiders hold about 0.12% of the company’s shares, while institutions hold 78.70% stake in the company. Shares short for MRK as of 1715731200 were 20265716 with a Short Ratio of 2.41, compared to 1713139200 on 20429972. Therefore, it implies a Short% of Shares Outstanding of 20265716 and a Short% of Float of 0.8.

Dividends & Splits

According to the company, the forward annual dividend rate for MRK is 3.00, from 2.96 in the trailing year. Against a Trailing Annual Dividend Yield of 0.022865972The stock’s 5-year Average Dividend Yield is 2.88.

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