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STOCK COMPARISON

Merck & Company vs Zydus Lifesciences: Fair Value & Quality

Both stocks run through our valuation models. Here is how Merck & Company (MRK) and Zydus Lifesciences (ZYDUSLIFE) compare, as of Sep 22, 2026.

As of Sep 22, 2026, Fair Value Calculator sees Merck & Company as the less overvalued of the two: Merck & Company trades at $150 versus a fair value of $125 (-16%), while Zydus Lifesciences trades at ₹1,161 versus ₹686 (-41%).
Merck & Company
MRK · USD · Health Care
-16%
upside to fair value
overvalued
Price$150
Fair Value$125
Quality70/100
Zydus Lifesciences
ZYDUSLIFE.NSE · INR · Health Care
-41%
upside to fair value
overvalued
Price₹1,161
Fair Value₹686
Quality48/100
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Head-to-head numbers

Green value = the better side for that row (for valuation multiples: lower = cheaper).

Merck & CompanyZydus Lifesciences
Valuation
43.5×P/E (TTM)23.0×
4.64×P/S (TTM)4.23×
5.80×P/B4.23×
11.4×EV/EBITDA16.1×
6.10×PEG—
−16.2%Fair value upside−40.9%
2.2%Dividend yield0.1%
$3.28Dividend per share₹1.00
Profitability
39%Operating margin18%
2.70×EBIT margin trend (5Y)1.37×
19%Return on equity18%
13%Return on assets8%
Growth
5%Revenue growth (YoY)16%
3.1%Avg. growth/yr (3Y)16.3%
9.4%Avg. growth/yr (5Y)13.5%
+16.0%Value creation/yr+19.3%
Balance & size
17.3×Interest coverage (EBIT/interest)13.2×
0.89×Debt / equity0.12×
$305BMarket cap$12B
healthyGrowth qualityexpensive

Merck & Company leads: 8 to 7 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.

Merck & Companyof which business quality 68 · market factors 90 Zydus Lifesciencesof which business quality 47 · market factors 71
ProfitabilityMargins and returns on capital today
74
58
Quality GrowthAre margins and returns improving?
36
34
CashflowEarnings quality: real cash, not paper profit
65
10
Fin. StrengthBalance sheet, leverage, solvency risk
68
73
InvestmentDisciplined investing over empire-building
71
21
Low VolatilityCalm price path (market factor)
83
91
MomentumPrice trend over the last 3–12 months (market factor)
88
58
52W MomentumDistance to the 52-week high (market factor)
100
70
Net IssuanceShare count: buybacks or dilution?
91
83

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 familyMerck & CompanyPrice $150Zydus LifesciencesPrice ₹1,161
DCF Models-22%below the price$117-27%below the price₹847
Earnings-Based-58%below the price$62.77-39%below the price₹703
Dividend Discount-60%below the price$60.35-82%below the price₹212
Multiples-18%below the price$122-21%below the price₹914
Asset-Based-90%below the price$14.27-84%below the price₹182
Growth DCF-51%below the price$74.00n/a
Economic Profit-44%below the price$83.85-51%below the price₹572
Growth Earnings-8%close to the price$138-7%close to the price₹1,075
Minimum-90%below the price$14.27-84%below the price₹182
Maximum-8%close to the price$138-7%close to the price₹1,075
Median-47%below the price$78.93-39%below the price₹703
Geometric mean-52%below the price$71.25-54%below the price₹537

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%.

Merck & Company: 24 of 26 models see the stock below the current price.

Zydus Lifesciences: 16 of 17 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.

Merck & Company
Price $150
Fair Value $125
Bear $70.92Bull $188
Zydus Lifesciences
Price ₹1,161
Fair Value ₹686
Bear ₹511Bull ₹1,845

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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.

Merck & Company · Health Care

Quality score70 · Top 25%
Fair value upside-16% · above median

Zydus Lifesciences · Health Care

Quality score48 · below median
Fair value upside-41% · below median

Bottom line

As of Sep 22, 2026, Fair Value Calculator sees Merck & Company as the less overvalued of the two: Merck & Company trades at $150 versus a fair value of $125 (-16%), while Zydus Lifesciences trades at ₹1,161 versus ₹686 (-41%).

Merck & Company has the higher quality score (70/100).

See the full analysis →
Merck & Company · Zydus Lifesciences

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