Merck & Co., Inc. (MRK)

DCF Valuation · Healthcare · Drug Manufacturers - General

Valuation as at 2026-08-04 · refreshed with the S&P 500 Most Undervalued screen

About Merck & Co., 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 & Co., Inc. MRK

Healthcare · Drug Manufacturers - General

Price
$127.77
Market Cap
$315.57B
Free Cash Flow
$14.05B
Beta
0.21
P/E (TTM)
36.0x
52-Week Range
$77.58–$135.05

MRK's price & financial trends

Quarterly reporting periods — the most granular consistent series Yahoo provides for this market.

Data refreshed 2026-08-04

Share price · last 2 years

$130.20 +10% vs first period
S&P 500 $118.45$99.48$85.20$84.12$105.26$109.18$130.20 2024-082024-122025-042025-082025-122026-042026-07

Earnings per share (diluted)

$1.72 -186% vs first period
$2.01$1.76$2.32$1.19$1.72Q1 '25Q2 '25Q3 '25Q4 '25Q1 '26

Free cash flow

$2.93B +150% vs first period
$1.17B$2.53B$6.83B$1.82B$2.93BQ1 '25Q2 '25Q3 '25Q4 '25Q1 '26

Dividend per share

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

Intrinsic value estimate · 5-year forecast

BEAR
$123.79
vs current $127.77
-3.1% ⚠️ Fairly Valued
BASE
$191.20
vs current $127.77
+49.6% ✅ Undervalued
BULL
$326.79
vs current $127.77
+155.8% ✅ Undervalued

Assumptions used in this valuation

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

Risk-free rate
4.75% ● LIVE
Live 10-yr govt bond
Beta
0.21
Direct from Yahoo
Equity risk premium
5.50%
Market-specific seed
Cost of debt
5.00%
Estimated (no debt/interest data)
Tax rate
25.00%
Estimated default
Capital structure
E 87% / D 13%
Market cap vs total debt
Projection horizon
5 years
+ terminal value beyond
BearBaseBull
5-yr FCF growth2.5%4.9%7.4%
Terminal growth2.5%2.5%2.5%
WACC (discount rate)6.62%5.62%4.62%

Cost of Equity = Risk-free rate + Beta × Equity Risk Premium = 4.75% + 0.21 × 5.50% = 5.91% · WACC = weighted by 87%/13% capital structure

These numbers come from running Merck & Co., 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 Most Undervalued stocks

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

Refreshed on the same cycle as the S&P 500 Most Undervalued screen. Change any assumption yourself in the full interactive tool.

Frequently asked questions

Is MRK undervalued?

The Base-case DCF estimates intrinsic value at $191.20 vs a current price of $127.77 — a +49.6% margin, so the Base case reads undervalued. This is a mechanical output, not advice.