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STOCK COMPARISON

Abbott Laboratories vs Merck & Company: Fair Value & Quality

Both stocks run through our valuation models. Here is how Abbott Laboratories (ABT) and Merck & Company (MRK) compare, as of Oct 30, 2026.

As of Oct 30, 2026, Fair Value Calculator sees Merck & Company as the less overvalued of the two: Abbott Laboratories trades at $106 versus a fair value of $75.28 (−29.1%), while Merck & Company trades at $150 versus $129 (−13.6%).
Abbott Laboratories
ABT · USD · Health Care
−29.1%
upside to fair value
overvalued
Price$106
Fair Value$75.28
Quality66/100
Fair ValueQualityUptrend
Merck & Company
MRK · USD · Health Care
−13.6%
upside to fair value
overvalued
Price$150
Fair Value$129
Quality67/100
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

Abbott LaboratoriesMerck & Company
Valuation
39.6×P/E (TTM)116.1×
17.9×Forward P/E (FY2027)16.2×
35.6×Median P/E at FY-end (ex one-offs where documented)14.9×
3.78×P/S (TTM)5.43×
3.50×P/B6.88×
15.4×EV/EBITDA13.6×
1.50×PEG2.66×
−29.1%Fair value upside−13.6%
2.4%Dividend yield2.3%
$2.52Dividend per share$3.32
Profitability
11.3%Operating margin-0.2%
1.19×EBIT margin trend (5Y)2.70×
10.6%Return on equity7.0%
7.5%Return on assets13.3%
Growth
14.5%Revenue growth (YoY)5.1%
0.5%Avg. growth/yr (3Y)3.1%
5.1%Avg. growth/yr (5Y)n/a
+10.6%Value creation/yr+17.2%
Balance & size
23.6×Interest coverage (EBIT/interest)17.3×
0.19×Debt / equity0.89×
$182BMarket cap$362B
healthyGrowth qualityhealthy
Abbott Laboratories, median P/E at fiscal year-end, 9 fiscal years (2016 to 2025), reported earnings, FY2016, FY2020, FY2023 ex one-offs: 35.6. Merck & Company, 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 & Company: FY 2026 earnings estimate probably distorted by a special item known to analysts (2.65 is not between the FY 2025 actual of 8.97 and the FY 2027 estimate of 9.23).

Abbott Laboratories leads: 8 to 6 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.

Abbott Laboratories Merck & Company
ProfitabilityHow much profit the company makes from its sales and capital
50
74
Quality GrowthAre margins and returns getting better?
47
36
CashflowDo the profits arrive as real cash?
71
65
Financial strengthDebt, balance sheet and risk of trouble
80
68
InvestmentDoes it invest with discipline instead of growing at any price?
65
71
Low VolatilityHow calm the share price moves, does not count
83
84
MomentumPrice trend of the last 3 to 12 months, does not count
40
85
Near the 52-week highDistance to the 52-week high, does not count
37
96
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 familyAbbott LaboratoriesPrice $106Merck & CompanyPrice $150
DCF Models−23.2%below the price$81.54−21.1%below the price$118
Earnings-Based−70.5%below the price$31.35−54.3%below the price$68.40
Dividend Discount−57.4%below the price$45.25−52.5%below the price$71.02
Multiples−34.4%below the price$69.69−20.0%below the price$120
Asset-Based−91.8%below the price$8.74−99.2%below the price$1.18
Growth DCF−29.7%below the price$74.64−40.3%below the price$89.20
Economic Profit−61.3%below the price$41.05−43.3%below the price$84.83
Growth Earnings−33.4%below the price$70.72−7.5%close to the price$138
Matching families8 of 8
Minimum−91.8%below the price$8.74−99.2%below the price$1.18
Maximum−23.2%below the price$81.54−7.5%close to the price$138
Median−45.9%below the price$57.47−41.8%below the price$87.01
Geometric mean−58.1%below the price$44.46−63.2%below the price$55.08
Ahead family by family2 of 86 of 8

Minimum, maximum, median and geometric mean only use the families both stocks have (matching families: 8 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 & Company is ahead in 6 of 8 shared families, Abbott Laboratories in 2.

Abbott Laboratories: 26 of 26 models see the stock below the current price.

Merck & Company: 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.

Abbott Laboratories
Price $106
Fair Value $75.28
Bear $52.65Bull $95.05
Merck & Company
Price $150
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.

Abbott Laboratories · Health Care

Quality score66 · Top 25%
Fair value upside−29.1% · below median

Merck & Company · Health Care

Quality score67 · Top 25%
Fair value upside−13.6% · above median

Bottom line

As of Oct 30, 2026, Fair Value Calculator sees Merck & Company as the less overvalued of the two: Abbott Laboratories trades at $106 versus a fair value of $75.28 (−29.1%), while Merck & Company trades at $150 versus $129 (−13.6%).

Merck & Company has the higher quality score (67/100).

Open Merck & Company 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.