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STOCK COMPARISON

Aarey Drugs & Pharmaceuticals vs Merck KGaA: Fair Value & Quality

Both stocks run through our valuation models. Here is how Aarey Drugs & Pharmaceuticals (AAREYDRUGS) and Merck KGaA (MRK) compare, as of Sep 27, 2026.

As of Sep 27, 2026, Fair Value Calculator sees Merck KGaA as the less overvalued of the two: Aarey Drugs & Pharmaceuticals trades at ₹102 versus a fair value of ₹20.22 (−80.1%), while Merck KGaA trades at €135 versus €109 (−19.3%).
Aarey Drugs & Pharmaceuticals
AAREYDRUGS.NSE · INR · Health Care
−80.1%
upside to fair value
overvalued
Price₹102
Fair Value₹20.22
Quality41/100
Merck KGaA
MRK.XETRA · EUR · Health Care
−19.3%
upside to fair value
overvalued
Price€135
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

Aarey Drugs & PharmaceuticalsMerck KGaA
Valuation
79.4×P/E (TTM)24.6×
n/aForward P/E (FY2026)16.0×
0.83×P/S (TTM)3.17×
2.27×P/B2.34×
51.3×EV/EBITDA13.3×
n/aPEG2.15×
−80.1%Fair value upside−19.3%
n/aDividend yield1.6%
n/aDividend per share€2.20
Profitability
1.1%Operating margin13.9%
0.82×EBIT margin trend (5Y)1.07×
2.8%Return on equity8.1%
0.9%Return on assets4.7%
Growth
-56.3%Revenue growth (YoY)3.4%
4.1%Avg. growth/yr (3Y)-1.7%
6.3%Avg. growth/yr (5Y)3.8%
−12.5%Value creation/yr+7.2%
Balance & size
0.9×Interest coverage (EBIT/interest)15.5×
0.01×Debt / equity0.36×
$36MMarket cap$67B
expensiveGrowth qualitymixed

Merck KGaA leads: 5 to 9 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.

Aarey Drugs & Pharmaceuticalsof which business quality 40 · market factors 62 Merck KGaAof which business quality 61 · market factors 67
ProfitabilityMargins and returns on capital today
34
41
Quality GrowthAre margins and returns improving?
35
40
CashflowEarnings quality: real cash, not paper profit
4
57
Fin. StrengthBalance sheet, leverage, solvency risk
53
75
InvestmentDisciplined investing over empire-building
83
80
Low VolatilityCalm price path (market factor)
32
73
MomentumPrice trend over the last 3–12 months (market factor)
70
61
52W MomentumDistance to the 52-week high (market factor)
82
70
Net IssuanceShare count: buybacks or dilution?
55
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 familyAarey Drugs & PharmaceuticalsPrice ₹102Merck KGaAPrice €135
DCF Modelsn/a−20.6%below the price€107
Earnings-Based−88.5%below the price₹11.70−60.6%below the price€53.25
Dividend Discountn/a−69.8%below the price€40.71
Multiples−79.1%below the price₹21.18−12.5%close to the price€118
Asset-Based−70.2%below the price₹30.22−67.4%below the price€44.06
Growth DCFn/a−30.0%below the price€94.57
Economic Profit−80.5%below the price₹19.80−50.8%below the price€66.44
Growth Earnings−79.4%below the price₹20.96−14.7%close to the price€115
Minimum−88.5%below the price₹11.70−69.8%below the price€40.71
Maximum−70.2%below the price₹30.22−12.5%close to the price€118
Median−79.4%below the price₹20.96−40.4%below the price€80.50
Geometric mean−80.4%below the price₹19.88−45.4%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%.

Aarey Drugs & Pharmaceuticals: 14 of 14 models see the stock below the current price.

Merck KGaA: 23 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.

Aarey Drugs & Pharmaceuticals
Price ₹102
Fair Value ₹20.22
Bear ₹14.67Bull ₹25.28
Merck KGaA
Price €135
Fair Value €109
Bear €60.04Bull €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.

Aarey Drugs & Pharmaceuticals · Health Care

Quality score41 · below median
Fair value upside−80.1% · bottom 25%

Merck KGaA · Health Care

Quality score62 · above median
Fair value upside−19.3% · above median

Bottom line

As of Sep 27, 2026, Fair Value Calculator sees Merck KGaA as the less overvalued of the two: Aarey Drugs & Pharmaceuticals trades at ₹102 versus a fair value of ₹20.22 (−80.1%), while Merck KGaA trades at €135 versus €109 (−19.3%).

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

Open Merck KGaA live analysis →

More comparisons

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