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STOCK COMPARISON

Gilead Sciences vs Merck & Company: Fair Value & Quality

Both stocks run through our valuation models. Here is how Gilead Sciences (GILD) and Merck & Company (MRK) compare, as of Oct 7, 2026.

As of Oct 7, 2026, Fair Value Calculator sees Gilead Sciences as the more attractively valued of the two: Gilead Sciences trades at $144 versus a fair value of $199 (+37.8%), while Merck & Company trades at $142 versus $129 (−8.9%).
Gilead Sciences
GILD · USD · Health Care
+37.8%
upside to fair value
undervalued
Price$144
Fair Value$199
Quality81/100
Merck & Company
MRK · USD · Health Care
−8.9%
upside to fair value
fairly valued
Price$142
Fair Value$129
Quality66/100
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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

Gilead SciencesMerck & Company
Valuation
18.5×P/E (TTM)112.5×
19.9×P/E ex one-offs (FY2025)n/a
14.6×Forward P/E (FY2027)15.0×
15.8×Median P/E at FY-end (ex one-offs where documented)14.9×
5.90×P/S (TTM)5.18×
7.95× · book value is mostly goodwillP/B6.56×
13.3×EV/EBITDA13.1×
2.27×PEG2.70×
+37.8%Fair value upside−8.9%
2.2%Dividend yield2.4%
$3.22Dividend per share$3.32
Profitability
33.7%Operating margin-0.2%
2.41×EBIT margin trend (5Y)2.70×
-20.7%Return on equity7.0%
14.1%Return on assets11.9%
Growth
10.2%Revenue growth (YoY)5.1%
2.6%Avg. growth/yr (3Y)3.1%
3.6%Avg. growth/yr (5Y)n/a
+10.6%Value creation/yr+17.3%
Balance & size
11.4×Interest coverage (EBIT/interest)17.3×
0.98×Debt / equity0.89×
$180BMarket cap$345B
healthyGrowth qualityhealthy
The P/E excluding one-off items is only shown where the special items are documented in the accounts (our own raw data or SEC filings). If one side lacks it, the reported P/E stays scored.
Gilead Sciences, median P/E at fiscal year-end, 10 fiscal years (2016 to 2025), reported earnings, 7 of the years ex one-offs: 15.8. 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 (2.73 is not between the FY 2025 actual of 8.97 and the FY 2027 estimate of 9.49).

Merck & Company leads: 5 to 8 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.

Gilead Sciencesof which business quality 79 · market factors 71 Merck & Companyof which business quality 68 · market factors 82
ProfitabilityMargins and returns on capital today
77
74
Quality GrowthAre margins and returns improving?
67
36
CashflowEarnings quality: real cash, not paper profit
86
65
Fin. StrengthBalance sheet, leverage, solvency risk
64
68
InvestmentDisciplined investing over empire-building
97
71
Low VolatilityCalm price path (market factor)
87
85
MomentumPrice trend over the last 3–12 months (market factor)
58
76
52W MomentumDistance to the 52-week high (market factor)
74
91
Net IssuanceShare count: buybacks or dilution?
89
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 familyGilead SciencesPrice $144Merck & CompanyPrice $142
DCF Models+57.1%above the price$227−14.8%close to the price$121
Earnings-Based0%close to the price$145−55.7%below the price$62.84
Dividend Discount−60.6%below the price$56.80−57.4%below the price$60.41
Multiples−19.6%below the price$116−13.8%close to the price$122
Asset-Based−91.5%below the price$12.22−89.9%below the price$14.29
Growth DCF+25.2%above the price$181−44.0%below the price$79.49
Economic Profit−31.9%below the price$98.23−46.6%below the price$75.79
Growth Earnings+37.8%above the price$199−2.6%close to the price$138
Minimum−91.5%below the price$12.22−89.9%below the price$14.29
Maximum+57.1%above the price$227−2.6%close to the price$138
Median−9.6%close to the price$130−45.3%below the price$77.64
Geometric mean−31.3%below the price$99.10−49.8%below the price$71.32

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%.

Gilead Sciences: 11 of 26 models see the stock below the current price.

Merck & Company: 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.

Gilead Sciences
Price $144
Fair Value $199
Bear $118Bull $258
Merck & Company
Price $142
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.

Gilead Sciences · Health Care

Quality score81 · Top 25%
Fair value upside+37.8% · Top 25%

Merck & Company · Health Care

Quality score66 · Top 25%
Fair value upside−8.9% · above median

Bottom line

As of Oct 7, 2026, Fair Value Calculator sees Gilead Sciences as the more attractively valued of the two: Gilead Sciences trades at $144 versus a fair value of $199 (+37.8%), while Merck & Company trades at $142 versus $129 (−8.9%).

Gilead Sciences has the higher quality score (81/100).

Open Gilead Sciences 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.