Research / Stock / MRK

MRK

Merck & Co., Inc.

FY2025Mkt cap 386.8B

156.45

+5.79 +3.84%

close 2026-08-25

Assumptions

FCF growth rate

0.2%

Market is pricing 0.2%— you agree

Actually grew +16.2%/yrFCF, 2020–2025 — the market is pricing 16.0pts SLOWER than history

Projection years

10 yrs

Terminal growth

3.00%

Discount rate (WACC)

5.58%

5.6% derived for this company beta 0.30 (1254d vs the S&P 500) · cost of equity 6.0% = 4.7% risk-free + 0.30 × 4.5% premium · 13% debt at 2.8%, taxed at 13% beta 0.27 clamped to 0.30

Fair value DCF model

$156.22

-0.1%

At the market's assumptions

Current price $156.45Enterprise value 386.2B

Bear $100.47 (-4.8% growth)Bull $241.53 (5.2%)

market $156.45

Today's market price is inside the range · band = your growth ±5pts, same model · the market itself prices 0.2%

Y10

Present value of each projected year, Y1–Y10

24% the 10 forecast years76% terminal value

Over three quarters of this valuation sits beyond the forecast horizon, in a single assumption about growth forever. Lengthening the projection or lowering terminal growth moves that share.

Same industry · SIC 2834 · trailing P/E for context

LLYP/E 541.16T JNJP/E 25658.2B ABBVP/E 113470.0B ABTP/E 31201.8B PFEP/E 21162.5B VRTXP/E 36140.4Bthis P/E: 21

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Assumptions

Fair valuei DCF model

Same industryi · SIC 2834 · trailing P/E for context

Assumptions

Fair valuei DCF model

Same industryi · SIC 2834 · trailing P/E for context

Fair value DCF model

Same industry · SIC 2834 · trailing P/E for context

Fair value DCF model

Same industry · SIC 2834 · trailing P/E for context