Merck or Pfizer: which stock is cheaper in 2026?
As of October 5, 2026, Merck (MRK) trades at 115× earnings (P/E) and Pfizer (PFE) at 36.7×, according to Kaplio. The median across the 157 pharma companies above $2bn in Kaplio's universe is 27.5×. A caveat on Merck: its earnings over the last twelve months are far from what the consensus expects, so its current P/E is not representative. A caveat on Pfizer: its earnings over the last twelve months are far from what the consensus expects, so its current P/E is not representative.
According to the Kaplio Summary
The same verdict as each company's page: price range by multiples, the four lights, the expected return if consensus is right and what Buffett and Lynch would say today.
| Merck (MRK) | Pfizer (PFE) | |
|---|---|---|
| Summary valuation | fairly priced ($193–$261) | no verdict ($80) |
| The four lights | Valuation: P/E 115.4× (fairly priced) Business: ROIC 6 % (weak) Balance sheet: Net debt/EBITDA 1.3× (solid) Results: 7 of 8 (on track) | Valuation: P/E 36.6× (no verdict) Business: ROIC 9 % (fair) Balance sheet: Net debt/EBITDA 4.4× (fragile) Results: 8 of 8 (on track) |
| Expected return (per year) | +7.4 % a year (to 2028) | — |
| Buffett method | quality 81 · would wait | quality 68 · would not approve |
| Lynch method | stalwart · would wait | turnaround · approves |
Metrics side by side
| Metric | Merck (MRK) | Pfizer (PFE) |
|---|---|---|
| Overview | ||
| Market Cap | $356B | $158B |
| Price | $144.30 | $27.80 |
| Valuation | ||
| P/E | 115× | 36.7× |
| P/B | 8.2× | 1.8× |
| P/S | 5.2× | 2.5× |
| EV/EBITDA | 29.1× | 17.3× |
| FCF Yield | 4.5 % | 7.0 % |
| Dividend Yield | 2.4 % | 6.2 % |
| Profitability | ||
| ROIC | 6.0 % | 9.0 % |
| ROE | 6.6 % | 4.9 % |
| Gross Margin | 75.4 % | 71.3 % |
| Operating Margin | 16.7 % | 25.1 % |
| Net Margin | 4.8 % | 6.8 % |
| Growth | ||
| Revenue 5Y CAGR | 9.4 % | 8.5 % |
| EPS 5Y CAGR | 21.2 % | -3.8 % |
| FCF 5Y CAGR | 16.2 % | -4.8 % |
| Balance Sheet | ||
| Net Debt / EBITDA | 1.3× | 4.4× |
| Debt / Equity | 1.3× | 0.7× |
Trailing twelve months where available; otherwise the latest fiscal year. Growth: five-year compound annual rate.