Merck Fair Value
MK
The fair market value of MKGAF stock is 86.72 USD. Relative to the market price of 162.425 USD Merck is overvalued by 46.6%
Eyestock's quantitative valuation approach is based on the method of estimating historical multipliers. To determine whether a stock is undervalued, we compare its current price to our estimated of fair value. The more undervalued a stock is, the more investment is profitable.
Fair Relative Value
Merck Valuation
Current MKGAF share ticker price is 162.425 USD.
The fair value level of 86.72 USD can be considered as an effective entry point for long-term investors to start investing in MKGAF stock. For a more in-depth assessment, we provide a minimum value that can be used to increase a stock position and a maximum one that can be used to reduce it.
Price chart is not available
Current market price
Current price is 47% higher its fair value
Current price is 58% higher its minimum value
Current price is 9% lower its maximum value
Market price:
MKGAF stock is overvalued
It means the current price may concern as a Risky Entry Point
Merck KGaA Stock Valuation Calculator
How do we value a stock?
As fair value, we use the product of the median Price-to-earnings ratios at the end of each reporting period for the last 5 years and earnings per share for the last 12 months. By analogy with the fair value, we calculate the maximum and minimum ones using the corresponding P/E extremums.
1
Maximum P/E over 5 years
16.24
2
Median P/E over 5 years
7.98
3
Minimum P/E over 5 years
6.32
4
Earning per share (last 12 months)
10.05 EUR
Maximum value
1
x
4
=
176.41 USD
Fair value
2
x
4
=
86.72 USD
Minimum value
3
x
4
=
68.7 USD
Merck KGaA price metrics
8.03
Annual return (geometric mean)
28.35
Risk (standard deviation) of returns
β
0.98
Beta (volatility compared to market)