What Is MRK Fair Value?
Merck & Co. Inc. (MRK) fair value estimate using multiple valuation models, updated daily.
As of August 1, 2026, Merck & Co. Inc. (MRK) has a composite fair value estimate of $112.94 based on four valuation models: DCF (35% weight), Graham Number (25% weight), PEG (25% weight), and DDM (15% weight). The current market price is $130.20, suggesting the stock is fair value by 13.3%.
Data as of August 1, 2026 (today)
Composite Fair Value
Fair Value4 of 4 models$112.94
vs. current price of $130.20(-13.3%)
How Is MRK Fair Value Calculated?
Four independent models estimate what MRK is worth. Each uses different inputs and assumptions. The composite blends them by weight.
MRK Intrinsic Value
Forward-looking models based on future cash flows
DCF (Discounted Cash Flow)
35% weightEstimates how much cash the company will generate over the next 10 years, then calculates what all that future cash is worth in today's dollars. Includes a 15% safety cushion. Try the standalone DCF calculator →
$196.54
+51.0%Undervalued
Inputs used
DDM (Dividend Discount Model)
15% weightIf a company pays you dividends, this model asks: how much are all those future dividend payments worth today? Only works for stocks that pay dividends. Try the intrinsic value calculator →
$111.43
-14.4%Fair Value
Inputs used
MRK Fair Value
Current fundamentals: earnings, assets, and growth rate
Graham Number (Value Investing)
25% weightCreated by legendary investor Benjamin Graham. It looks at two things: how much the company earns (EPS) and what its assets are worth (Book Value), then calculates the maximum price a careful investor should pay. Try the fair value calculator →
$33.82
-74.0%Overvalued
Inputs used
PEG (Price/Earnings to Growth)
25% weightChecks if you're paying a fair price for the company's growth. A fast-growing company deserves a higher price than a slow one. This model finds the right price based on how fast earnings are growing.
$27.36
-79.0%Overvalued
Inputs used
What If You Change the Assumptions?
Drag the sliders to test different scenarios. Tap the ? buttons to learn what each input means.
Your DCF Fair Value
Current price $130.20 is 51.0% below this estimate
View 10-year cash flow projections
| Year | Projected FCF (Free Cash Flow) | Present Value |
|---|---|---|
| Year 1 | $14.75B | $14.00B |
| Year 2 | $15.49B | $13.94B |
| Year 3 | $16.26B | $13.89B |
| Year 4 | $17.08B | $13.83B |
| Year 5 | $17.93B | $13.78B |
| Year 6 | $18.83B | $13.73B |
| Year 7 | $19.77B | $13.68B |
| Year 8 | $20.76B | $13.62B |
| Year 9 | $21.79B | $13.57B |
| Year 10 | $22.88B | $13.52B |
| Terminal Value | $807.40B | $476.95B |
What Are MRK's Key Financial Metrics?
Earnings & Growth
Current Price
$130.20
EPS (TTM)
$3.55
Forward P/E
13.5
Profit Margin
13.6%
Cash & Balance Sheet
Free Cash Flow
14B
EBITDA
29.5B
Book Value
$18.58
Total Debt
49.1B
What Do Analysts Say About MRK?
Low
$105.00
Average
$135.19
High
$155.00
Upside
+3.8%
MRK Fair Value FAQ
What is the fair value of MRK?
Based on our composite model (DCF 35%, Graham 25%, PEG 25%, DDM 15%), MRK's estimated fair value is $112.94. The stock is currently trading at $130.20, which makes it fair value by our analysis.
How is MRK's fair value calculated?
We use four valuation methods: Discounted Cash Flow (DCF), Graham Number, PEG-based Fair Value, and Dividend Discount Model (for dividend-paying stocks). The composite score weights DCF at 35%, Graham and PEG at 25% each, and DDM at 15%. When a model can't be applied, its weight is redistributed proportionally.
Is MRK overvalued or undervalued?
Based on our analysis, MRK is fair value. The current price of $130.20 is 13.3% above our estimated fair value of $112.94.
What do Wall Street analysts say about MRK?
26 analysts cover Merck & Co. Inc. with a consensus rating of "Buy." The average price target is $135.19, ranging from $105.00 to $155.00. This implies 3.8% upside from the current price.