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STOCK COMPARISON

AbbVie vs Merck: Fair Value & Quality

Both stocks run through our valuation models. Here is how AbbVie (ABBV) and Merck (MRK) compare, as of Nov 2, 2026.

As of Nov 2, 2026, Fair Value Calculator sees AbbVie as the less overvalued of the two: AbbVie trades at $289 versus a fair value of $260 (−10.1%), while Merck trades at $148 versus $129 (−12.9%).
AbbVie
ABBV · USD · Health Care
−10.1%
upside to fair value
overvalued
Price$289
Fair Value$260
Quality74/100
Fair ValueQualityUptrend
Merck
MRK · USD · Health Care
−12.9%
upside to fair value
overvalued
Price$148
Fair Value$129
Quality69/100
Fair ValueQualityUptrend
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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

AbbVieMerck
Valuation
49.6×P/E (TTM)149.9×
79.4×P/E ex one-offs (FY2025)149.9×
17.9×Forward P/E (FY2027)16.3×
25.4×Median P/E at FY-end (ex one-offs where documented)14.9×
7.75×P/S (TTM)5.44×
Negative equityP/B6.97×
17.4×EV/EBITDA25.0×
0.60×PEG2.82×
−10.1%Fair value upside−12.9%
0.6%Dividend yield2.3%
$1.73Dividend per share$3.36
Profitability
37.3%Operating margin41.2%
0.83×EBIT margin trend (5Y)2.70×
Negative equityReturn on equity7.0%
3.2%Return on assets13.3%
Growth
10.3%Revenue growth (YoY)4.7%
1.8%Avg. growth/yr (3Y)3.1%
6.0%Avg. growth/yr (5Y)n/a
−8.5%Value creation/yr+17.2%
Balance & size
6.9×Interest coverage (EBIT/interest)17.3×
Negative equityDebt / equity0.89×
$512BMarket cap$367B
mixedGrowth qualityhealthy
The P/E excluding one-off items is scored. For Merck no documented adjusted P/E is available, so its reported P/E is shown there. The trailing P/E is shown for reference.
AbbVie, median P/E at fiscal year-end, 10 fiscal years (2016 to 2025), reported earnings, 7 of the years ex one-offs: 25.4. Merck, median P/E at fiscal year-end, 5 fiscal years (2021 to 2025), reported earnings: 14.9.
Forward P/E: price divided by the analyst consensus for the first fiscal year that has not started yet. The current year carries special items from quarters already reported. Merck: FY 2026 earnings estimate probably distorted by a special item known to analysts (2.75 is not between the FY 2025 actual of 8.97 and the FY 2027 estimate of 9.11).

Merck leads: 4 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.

AbbVie Merck
ProfitabilityHow much profit the company makes from its sales and capital
39
74
Quality GrowthAre margins and returns getting better?
58
36
CashflowDo the profits arrive as real cash?
99
65
Financial strengthDebt, balance sheet and risk of trouble
53
68
InvestmentDoes it invest with discipline instead of growing at any price?
100
71
Low VolatilityHow calm the share price moves, does not count
88
84
Price momentumPrice momentum of the last 3 to 12 months, does not count
72
83
Near the 52-week highDistance to the 52-week high, does not count
80
95
New sharesBuys back shares or issues new ones?
83
94

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 familyAbbViePrice $289MerckPrice $148
DCF Models−51.9%below the price$139−20.5%below the price$118
Earnings-Based−85.3%below the price$42.52−53.9%below the price$68.40
Dividend Discount−48.8%below the price$148−52.1%below the price$71.02
Multiples−76.6%below the price$67.70−19.3%below the price$120
Asset-Basedn/a−99.2%below the price$1.18
Growth DCF−31.8%below the price$197−39.9%below the price$89.20
Economic Profit−55.1%below the price$130−42.8%below the price$84.83
Growth Earnings−85.9%below the price$40.80−6.8%close to the price$138
Matching families7 of 8
Minimum−85.9%below the price$40.80−53.9%below the price$68.40
Maximum−31.8%below the price$197−6.8%close to the price$138
Median−55.1%below the price$130−39.9%below the price$89.20
Geometric mean−67.7%below the price$93.35−35.7%below the price$95.37
Ahead family by family2 of 75 of 7

Minimum, maximum, median and geometric mean only use the families both stocks have (matching families: 7 of 8), so a family without a value on one side does not distort the comparison. Ahead in a family is the stock whose fair value there sits higher relative to its price. Geometric because deviations are ratios: half the price and twice the price average to 100%, not 125%.

Family by family: Merck is ahead in 5 of 7 shared families, AbbVie in 2.

AbbVie: 23 of 23 models see the stock below the current price.

Merck: 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.

AbbVie
Price $289
Fair Value $260
Bear $168Bull $359
Merck
Price $148
Fair Value $129
Bear $74.31Bull $180

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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.

AbbVie · Health Care

Quality score74 · Top 25%
Fair value upside−10.1% · above median

Merck · Health Care

Quality score69 · Top 25%
Fair value upside−12.9% · above median

Bottom line

As of Nov 2, 2026, Fair Value Calculator sees AbbVie as the less overvalued of the two: AbbVie trades at $289 versus a fair value of $260 (−10.1%), while Merck trades at $148 versus $129 (−12.9%).

AbbVie has the higher quality score (74/100).

Open AbbVie 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.