What is Merck & Co., Inc. (MRK)'s PEG ratio?

Merck & Co., Inc. (MRK) has a PEG ratio of 5.60 (Potentially Overvalued), based on a PE ratio of 118.7 and expected EPS growth of 21.2% (5-Year EPS CAGR).

Is MRK undervalued based on its PEG ratio?

A PEG below 1.0 is conventionally read as potentially undervalued, 1.0–2.0 as fairly valued, and above 2.0 as potentially overvalued relative to growth. At 5.60, Merck & Co., Inc. (MRK) screens as "Potentially Overvalued". PEG is one signal, not investment advice — see the full DCF fair value at evidinvest.com/valuation/MRK.

Merck & Co., Inc. (MRK) PEG Ratio

Potentially Overvalued

PE ratio relative to earnings growth — is the valuation justified?

5.60

PEG Ratio

5.60

Growth Rate Source

Good Data Quality5-Year EPS CAGR

Current Price

$148.35

TTM EPS

$1.25

P/E Ratio

118.68

Growth Rate

21.2%

5-Year EPS CAGR

Sector

Healthcare

Biotechnology

Calculated

8/30/2026

7:07:48 AM

Peer Comparison

Sample Size

4 peers

Industry Median PEG

2.43

25th Percentile

2.11

75th Percentile

9.16

MRK PEG (5.60) vs Industry Median (2.43): 130% premium

Symbol	Company	PEG	P/E	Growth	vs MRK
LLY	ELI LILLY & Co	1.43	39.4	27.5%	-74%
JNJ	JOHNSON & JOHNSON	2.11	31.1	14.8%	-62%
BMY	BRISTOL MYERS SQUIBB CO	2.75	14.6	5.3%	-51%
AMGN	AMGEN INC	9.16	26.9	2.9%	+64%

How to Interpret PEG Ratio

PEG < 1.0 — Potentially Undervalued. The stock may be priced below its earnings growth rate, suggesting a potential buying opportunity.

PEG 1.0–2.0 — Fairly Valued. The stock price is roughly in line with its earnings growth. A PEG of 1.0 is often considered "fair value."

PEG > 2.0 — Potentially Overvalued. The stock may be priced above what its earnings growth justifies.

Limitations:PEG ratios are less reliable for financial firms (earnings driven by interest margins), companies with negative/zero earnings growth, and hypergrowth companies (>100% growth) where the ratio may appear misleadingly low. Always use PEG alongside other valuation metrics.

Merck & Co., Inc. (MRK) PEG Ratio

Peer Comparison

How to Interpret PEG Ratio

More on MRK

Compare with peers

Explore

Merck & Co., Inc. (MRK) PEG Ratio

Peer Comparison

How to Interpret PEG Ratio

More on MRK

Compare with peers

Explore