Is Merck Stock Undervalued After Its Colossal Earnings Growth?

Merck & Co., Inc. NYSE: MRK is one of the largest pharmaceutical firms in the world. The firm ranks fourth behind giants like Eli Lilly NYSE: LLY and Novo Nordisk NYSE: NVO, with a market capitalization of $294 billion.The company’s forward price-to-earnings (P/E) ratio sits at 13x. Compared to a peer group of the world's 10 largest pharma companies, this is well below the average of 20x. According to FactSet Earnings Insight, the healthcare sector has experienced the fourth-largest earnings growth in the p ...