Ticker League

Fair Value for Merck & Co. (MRK)

See growth priced into Merck & Co. (MRK): reverse DCF, implied rate vs history and analysts, FCF view. Free intrinsic value calculator for education.

Fair value (multi-method)

Four independent methods triangulate what MRK is worth. The headline is the Forward-DCF intrinsic value at a normalized growth rate; the margin of safety compares it to the current price.

Estimated fair value (Forward DCF)

$564.12

Margin of safety
+78.59% vs current price $120.79

Method range

$23.93 $564.12

median $101.52

Methods disagree

Valuation methods

Each method’s implied fair value per share and its upside versus the current price. Missing methods (no analyst coverage, negative earnings, etc.) are shown as “—”.

  • Forward DCF$564.12
  • Exit multiple$72.36
  • Analyst target$130.69
  • Graham number$23.93

Stock price

$120.79

FCF / share (TTM)

$1.18

3Y FCF CAGR

6.7%

Fair value @ hist. growth

$57.31

This analysis is for informational purposes only and is not financial advice. Scenario prices and DCF-style figures depend on your assumptions and data from public filings and estimates. They are not forecasts of future returns.

Implied FCF growth

15.7%

per year over your projection horizon

Premium vs DCF

Margin of safety -110.8% vs hist-growth DCF

Historical 3Y CAGR

6.7%

Your model implies

15.7%

Analyst consensus is EPS-only — no comparable FCF / share estimate to show on this basis.

Model inputs

Move sliders to test how the reverse DCF reacts. Historical-growth markers show where the company has actually grown over the last cycle.

Discount rate (cost of equity proxy)5.5%
Terminal growth2.50%
Projection years10 yr
FCF growth per year (supplemental projection)7%
3Y CAGR 7%

Undiscounted FCF per share over 10 years at 7% annual growth.

Sensitivity — implied growth vs your assumptions

Each cell shows the per-share growth rate the market would need to justify the current price at that combination of discount rate (rows) and terminal growth (columns). Your selected inputs are highlighted.

Row axis: discount rate. Column axis: terminal growth.Terminal g →↓ Discount1.5%2.0%2.5%3.0%3.5%
5.0%16.7%15.1%13.1%10.8%7.9%
5.0%16.7%15.1%13.1%10.8%7.9%
5.5%18.7%17.3%15.7%13.8%11.5%
6.5%22.1%21.0%19.7%18.3%16.7%
7.5%25.1%24.2%23.2%22.0%20.7%
Color≤ historical CAGRModerate premiumHigh premium (≥ 15pp above hist)Your inputs

Historical multiples

Each bar is the trailing five-year range (low left, high right). Filled portion runs from low to today; the dot marks today; the small tick marks the five-year median. Low, median, and high are listed under each bar.

P/EToday14.4· at low
5Y low14.4
Median14.9
5Y high778.7
P/SToday4.1
5Y low3.9
Median4.1
5Y high4.7
EV/EBITDAToday10.2· at low
5Y low10.2
Median12.3
5Y high45.4

PEG

0.07

Low vs growth

Net debt

$36.0B

Total debt − cash

Beta

0.20

Vs market benchmark

Frequently asked questions