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STOCK COMPARISON

Merck & Company vs Sandoz Group: Fair Value & Quality

Both stocks run through our valuation models. Here is how Merck & Company (MRK) and Sandoz Group (SDZ) compare, as of Sep 5, 2026.

As of Sep 5, 2026, Fair Value Calculator sees Merck & Company as the less overvalued of the two: Merck & Company trades at $152 versus a fair value of $125 (-18%), while Sandoz Group trades at CHF 68.36 versus CHF 39.21 (-43%).
Merck & Company
MRK · USD · Health Care
-18%
upside to fair value
overvalued
Price$152
Fair Value$125
Quality70/100
Sandoz Group
SDZ.SW · CHF · Health Care
-43%
upside to fair value
overvalued
PriceCHF 68.36
Fair ValueCHF 39.21
Quality56/100
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Head-to-head numbers

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

Merck & CompanySandoz Group
Valuation
44.1×P/E (TTM)38.3×
4.64×P/S (TTM)3.10×
5.80×P/B3.68×
11.4×EV/EBITDA19.8×
6.10×PEG0.86×
−17.7%Fair value upside−42.6%
2.2%Dividend yield1.5%
$3.28Dividend per shareCHF 1.01
Profitability
39%Operating margin14%
2.70×EBIT margin trend (5Y)1.86×
19%Return on equity10%
13%Return on assets4%
Growth
5%Revenue growth (YoY)11%
3.1%Avg. growth/yr (3Y)9.4%
9.4%Avg. growth/yr (5Y)6.3%
+16.0%Value creation/yr+10.3%
Balance & size
17.3×Interest coverage (EBIT/interest)7.8×
0.89×Debt / equity0.50×
$305BMarket cap$35B
healthyGrowth qualityhealthy

Merck & Company leads: 9 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.

Merck & Companyof which business quality 68 · market factors 90 Sandoz Groupof which business quality 55 · market factors 72
ProfitabilityMargins and returns on capital today
74
40
Quality GrowthAre margins and returns improving?
36
85
CashflowEarnings quality: real cash, not paper profit
65
49
Fin. StrengthBalance sheet, leverage, solvency risk
68
59
InvestmentDisciplined investing over empire-building
71
25
Low VolatilityCalm price path (market factor)
83
84
MomentumPrice trend over the last 3–12 months (market factor)
88
61
52W MomentumDistance to the 52-week high (market factor)
100
79
Net IssuanceBuybacks instead of dilution
91
76

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 $152Sandoz GroupPrice CHF 68.36
DCF Models-23%below the price$117-33%below the priceCHF 45.65
Earnings-Based-59%below the price$62.77-61%below the priceCHF 26.97
Dividend Discount-60%below the price$60.35-81%below the priceCHF 12.81
Multiples-20%below the price$122-30%below the priceCHF 47.76
Asset-Based-91%below the price$14.27-79%below the priceCHF 14.53
Growth DCF-51%below the price$74.00-39%below the priceCHF 41.57
Economic Profit-45%below the price$83.85-56%below the priceCHF 30.25
Growth Earnings-9%close to the price$138-42%below the priceCHF 39.90
Minimum-91%below the price$14.27-81%below the priceCHF 12.81
Maximum-9%close to the price$138-30%below the priceCHF 47.76
Median-48%below the price$78.93-49%below the priceCHF 35.07
Geometric mean-53%below the price$71.25-57%below the priceCHF 29.34

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.

Sandoz Group: 24 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.

Merck & Company
Bear $70.92Fair Value $125Bull $188
$152 = current price (white tick)
Sandoz Group
Bear CHF 21.72Fair Value CHF 39.21Bull CHF 49.01
CHF 68.36 = current price (white tick)

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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-18% · above median

Sandoz Group · Health Care

Quality score56 · above median
Fair value upside-43% · below median

Bottom line

As of Sep 5, 2026, Fair Value Calculator sees Merck & Company as the less overvalued of the two: Merck & Company trades at $152 versus a fair value of $125 (-18%), while Sandoz Group trades at CHF 68.36 versus CHF 39.21 (-43%).

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

See the full analysis →

More comparisons

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