Eli Lilly and vs Merck & Company: Fair Value & Quality
Both stocks run through our valuation models. Here is how Eli Lilly and (LLY) and Merck & Company (MRK) compare, as of Aug 13, 2026.
As of Aug 13, 2026, Fair Value Calculator sees Merck & Company as the less overvalued of the two: Eli Lilly and trades at $1,220 versus a fair value of $389 (-68%), while Merck & Company trades at $133 versus $125 (-6%).
Eli Lilly and
LLY · USD · Health Care
-68%
upside to fair value
overvalued
Price$1,220
Fair Value$389
Quality69/100
Merck & Company
MRK · USD · Health Care
-6%
upside to fair value
fairly valued
Price$133
Fair Value$125
Quality70/100
Head-to-head numbers
Green value = the better side for that row (for valuation multiples: lower = cheaper).
Eli Lilly andMerck & Company
Valuation
42.2×P/E (TTM)38.5×
14.67×P/S (TTM)4.64×
39.94×P/B5.80×
30.2×EV/EBITDA11.4×
1.54×PEG6.10×
0.5%Dividend yield2.6%
$6.23Dividend per share$3.28
Profitability
35%Net margin14%
49%Operating margin39%
107%Return on equity19%
21%Return on assets13%
Growth
56%Revenue growth (YoY)5%
31.7%Avg. growth/yr (3Y)3.1%
21.6%Avg. growth/yr (5Y)9.4%
Balance & size
1.54×Debt / equity0.89×
$1.1TMarket cap$305B
mixedGrowth qualityhealthy
Eli Lilly and leads: 8 to 6 metric wins.
Dash = 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.
Eli Lilly andof which business quality 65 · market factors 84Merck & Companyof which business quality 68 · market factors 85
ProfitabilityMargins and returns on capital today
85
74
Quality GrowthAre margins and returns improving?
86
36
CashflowEarnings quality: real cash, not paper profit
InvestmentDisciplined investing over empire-building
15
71
Low VolatilityCalm price path (market factor)
77
86
MomentumPrice trend over the last 3–12 months (market factor)
81
75
52W MomentumDistance to the 52-week high (market factor)
98
100
Net IssuanceBuybacks instead of dilution
93
91
What the models say
The median fair value (base case) per model family, each in the currency of its trading venue. Green = above the current price, red = below.
Eli Lilly and
DCF Models$334
Earnings-Based$239
Dividend Discount$115
Multiples$358
Asset-Based$19.94
Growth DCF$187
Economic Profit$347
Growth Earnings$375
26 of 26 models see the stock below the current price.
Merck & Company
DCF Models$117
Earnings-Based$62.77
Dividend Discount$60.35
Multiples$122
Asset-Based$14.27
Growth DCF$74.00
Economic Profit$83.85
Growth Earnings$138
19 of 26 models see the stock below the current price.
Scenario ranges
From our cautious bear case to the optimistic bull case. The white tick is the current price: left of fair value means room to run.
Eli Lilly and
Bear $216Fair Value $389Bull $582
$1,220 = current price (white tick)
Merck & Company
Bear $70.92Fair Value $125Bull $188
$133 = current price (white tick)
Compare two other stocks
Tap a field and type again, ticker or company name.
Free, no sign-up
Ranked within their sector
Where each stock sits within its sector peer group. Band = middle 50% of peers, tick = median, dot = this stock.
Eli Lilly and · Health Care
Quality score69 · Top 25%
Fair value upside-68% · bottom 25%
Merck & Company · Health Care
Quality score70 · Top 25%
Fair value upside-6% · above median
Bottom line
As of Aug 13, 2026, Fair Value Calculator sees Merck & Company as the less overvalued of the two: Eli Lilly and trades at $1,220 versus a fair value of $389 (-68%), while Merck & Company trades at $133 versus $125 (-6%).
Merck & Company has the higher quality score (70/100).
Just your email for the monthly Top-25 report of the most undervalued quality stocks, with fair value, quality and price target. Plus 14 days of Pro to try, no card.
Free. You confirm by email (double opt-in) and can unsubscribe anytime in one click. Not financial advice.
A model-based valuation snapshot from 21 models. Values change with price and fundamentals; the date shown above applies.
