Merck & Company, Inc. (MRK)

DCF Valuation · Healthcare · Drug Manufacturers - General

Valuation as at 2026-08-14 · see also the S&P 500 Most Undervalued screen

About Merck & Company, Inc.

Merck & Co., Inc. operates as a healthcare company worldwide. It offers human health pharmaceutical for various areas under the Keytruda, Keytruda Qlex, Welireg, Gardasil, ProQuad, M-M-R II, Varivax, Vaxneuvance, Capvaxive, RotaTeq, Pneumovax 23, Bridion, Prevymis, Dificid, Zerbaxa, Winrevair, Adempas/ Verquvo, Ohtuvayre, Lagevrio, Isentress/Isentress HD, Delstrigo, Pifeltro, Belsomra, Januvia, and Janumet brands.

Source: Yahoo Finance company profile · factual description, not KashVector commentary

Merck & Company, Inc. MRK

Healthcare · Drug Manufacturers - General

Price
$135.55
Market Cap
$334.43B
Free Cash Flow
$15.17B
Beta
0.21
P/E (TTM)
106.7x
52-Week Range
$77.58–$135.68

Merck & Company, Inc.'s price & financial trends

Each card is labelled with its own reporting period — quarterly where Yahoo provides it for this market, annual otherwise.

Data as at 2026-08-14

Share price · last 2 years

$135.55 +14% vs 2024-08
S&P 500 $118.45$98.82$79.16$104.83$109.18$135.55 2024-082025-012025-062025-112026-042026-08

Earnings per share (diluted) Per quarter

-$0.54 -131% vs Q2 '25
$1.76$2.32$1.19-$1.72-$0.54Q2 '25Q3 '25Q4 '25Q1 '26Q2 '26

Free cash flow Per quarter

$4.48B +77% vs Q2 '25
$2.53B$6.83B$1.82B$2.93B$4.48BQ2 '25Q3 '25Q4 '25Q1 '26Q2 '26

Dividend per share Per quarter

$0.87 +5% vs Q2 '25
$0.83$0.81$0.81$0.85$0.87Q2 '25Q3 '25Q4 '25Q1 '26Q2 '26

Value investing scale · Buffett · Dalio · Graham

Partial Fit
8 / 20 combined score

1 criterion had no data

See the full Buffett, Dalio & Graham breakdown for MRK →

Intrinsic value estimate · 5-year forecast

BEAR
$133.38
vs current $135.55
-1.6% ⚠️ Fairly Valued
BASE
$208.05
vs current $135.55
+53.5% ✅ Undervalued
BULL
$358.16
vs current $135.55
+164.2% ✅ Undervalued

Assumptions used in this valuation

Every input below is either fetched live from Yahoo Finance or a documented default — nothing is hidden.

Starting free cash flow
$15.17B
Reported free cash flow (Yahoo)
Risk-free rate
4.68% ● LIVE
Live 10-yr govt bond
Beta
0.21
Direct from Yahoo
Equity risk premium
5.50%
Market-specific seed
Cost of debt
5.28%
Synthetic rating AAA, ICR 16.3x
Tax rate
25.00%
Estimated default
Capital structure
E 86% / D 14%
Market cap vs total debt
Projection horizon
5 years
+ terminal value beyond
BearBaseBull
5-yr FCF growth2.5%5.1%7.6%
Terminal growth2.5%2.5%2.5%
WACC (discount rate)6.58%5.58%4.58%

Cost of Equity = Risk-free rate + Beta × Equity Risk Premium = 4.68% + 0.21 × 5.50% = 5.84% · WACC = weighted by 86%/14% capital structure

These numbers come from running Merck & Company, Inc.'s cash flows through the mechanical DCF formula and assumptions above — not from any view on the news, management, or MRK's competitive position. What is DCF?

Want to test your own growth or discount-rate assumptions?Open the full interactive calculator, pre-filled with MRK →

More S&P 500 stocks we've valued

Not financial advice. DCF valuations are highly sensitive to assumptions — small changes in growth rate or discount rate produce large swings in output. This is a mechanical calculation, not a recommendation to buy, hold, or sell.

About this valuation

Computed on 2026-08-14 from Yahoo Finance data, using the same engine as the full DCF tool and the S&P 500 Most Undervalued screen. Every figure above is a point-in-time snapshot of that date — change any assumption yourself in the interactive tool for a live one.

Frequently asked questions

Is Merck & Company, Inc. (MRK) undervalued?

The Base-case DCF estimates intrinsic value at $208.05 vs a price of $135.55 on 2026-08-14 — a +53.5% margin, so the Base case reads undervalued. This is a mechanical output, not advice.