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STOCK COMPARISON

Shandong Xinhua Pharmaceutical Co vs Merck KGaA: Fair Value & Quality

Both stocks run through our valuation models. Here is how Shandong Xinhua Pharmaceutical Co (000756) and Merck KGaA (MRK) compare, as of Sep 24, 2026.

As of Sep 24, 2026, Fair Value Calculator sees Shandong Xinhua Pharmaceutical Co as the less overvalued of the two: Shandong Xinhua Pharmaceutical Co trades at ¥16.14 versus a fair value of ¥14.25 (-12%), while Merck KGaA trades at €133 versus €109 (-18%).
Shandong Xinhua Pharmaceutical Co
000756.SHE · CNY · Health Care
-12%
upside to fair value
overvalued
Price¥16.14
Fair Value¥14.25
Quality56/100
Merck KGaA
MRK.XETRA · EUR · Health Care
-18%
upside to fair value
overvalued
Price€133
Fair Value€109
Quality62/100
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Head-to-head numbers

Green is the better side of a row, red the weaker one (for valuation multiples: lower = cheaper). Grey rows are for reference only and are not scored.

betterweakerfor reference, not scored

Shandong Xinhua Pharmaceutical CoMerck KGaA
Valuation
32.0×P/E (TTM)24.1×
1.28×P/S (TTM)3.14×
2.14×P/B2.30×
11.1×EV/EBITDA12.9×
n/aPEG2.76×
−11.7%Fair value upside−18.2%
0.9%Dividend yield1.7%
¥0.15Dividend per share€2.20
Profitability
6%Operating margin18%
0.57×EBIT margin trend (5Y)1.07×
5%Return on equity9%
2%Return on assets5%
Growth
-0%Revenue growth (YoY)-3%
5.2%Avg. growth/yr (3Y)-1.7%
7.8%Avg. growth/yr (5Y)3.8%
−3.4%Value creation/yr+7.3%
Balance & size
8.2×Interest coverage (EBIT/interest)15.5×
0.13×Debt / equity0.36×
$2BMarket cap$66B
mixedGrowth qualitymixed

Even match: 7 to 7 metric wins.

n/a = not meaningfully computable, for example with negative equity.

Quality in detail

The quality score, broken down into the same factor families as on the stock page, 0 to 100 per family.

Shandong Xinhua Pharmaceutical Coof which business quality 58 · market factors 55 Merck KGaAof which business quality 61 · market factors 65
ProfitabilityMargins and returns on capital today
38
41
Quality GrowthAre margins and returns improving?
23
40
CashflowEarnings quality: real cash, not paper profit
57
57
Fin. StrengthBalance sheet, leverage, solvency risk
76
76
InvestmentDisciplined investing over empire-building
81
80
Low VolatilityCalm price path (market factor)
73
72
MomentumPrice trend over the last 3–12 months (market factor)
47
59
52W MomentumDistance to the 52-week high (market factor)
49
65
Net IssuanceShare count: buybacks or dilution?
77
82

What the models say

How far the median fair value (base case) per model family sits from the current price, in percent. The amount in the currency of the trading venue is shown underneath.

above the price, more than 15% above close to the price, 85% to 115% of the price below the price, more than 15% below

Model familyShandong Xinhua Pharmaceutical CoPrice ¥16.14Merck KGaAPrice €133
DCF Models-31%below the price¥11.15-19%below the price€107
Earnings-Based-73%below the price¥4.30-60%below the price€53.25
Dividend Discountn/a-69%below the price€40.71
Multiples-48%below the price¥8.37-11%close to the price€118
Asset-Based-69%below the price¥5.05-67%below the price€44.06
Growth DCF-39%below the price¥9.93-29%below the price€94.57
Economic Profit-68%below the price¥5.19-50%below the price€66.44
Growth Earnings-57%below the price¥7.02-13%close to the price€115
Minimum-73%below the price¥4.30-69%below the price€40.71
Maximum-31%below the price¥11.15-11%close to the price€118
Median-57%below the price¥7.02-39%below the price€80.50
Geometric mean-57%below the price¥6.88-45%below the price€73.75

Minimum, maximum, median and geometric mean refer to the family values in this table. Geometric because deviations are ratios: half the price and twice the price average to 100%, not 125%.

Shandong Xinhua Pharmaceutical Co: 21 of 24 models see the stock below the current price.

Merck KGaA: 22 of 26 models see the stock below the current price.

Scenario ranges

From our cautious bear scenario to the optimistic bull scenario. The white tick is the current price (value above it), the green tick the fair value (value below it): if the price sits left of the fair value, there is room to rise.

Shandong Xinhua Pharmaceutical Co
Price ¥16.14
Fair Value ¥14.25
Bear ¥10.75Bull ¥17.77
Merck KGaA
Price €133
Fair Value €109
Bear €59.91Bull €150

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Ranked within their sector

Where each stock sits within its sector peer group. Band = middle 50% of peers, tick = median, dot = this stock.

Shandong Xinhua Pharmaceutical Co · Health Care

Quality score56 · above median
Fair value upside-12% · above median

Merck KGaA · Health Care

Quality score62 · above median
Fair value upside-18% · above median

Bottom line

As of Sep 24, 2026, Fair Value Calculator sees Shandong Xinhua Pharmaceutical Co as the less overvalued of the two: Shandong Xinhua Pharmaceutical Co trades at ¥16.14 versus a fair value of ¥14.25 (-12%), while Merck KGaA trades at €133 versus €109 (-18%).

Merck KGaA has the higher quality score (62/100).

Open Shandong Xinhua Pharmaceutical Co live analysis →

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A model-based valuation snapshot from 26 models. Values change with price and fundamentals; the date shown above applies.