What Is MRK Fair Value?
Merck & Co. Inc. (MRK) fair value estimate using multiple valuation models, updated daily.
As of September 16, 2026, Merck & Co. Inc. (MRK) has a composite fair value estimate of $115.29 based on four valuation models: DCF (35% weight), Graham Number (25% weight), PEG (25% weight), and DDM (15% weight). The current market price is $144.91, suggesting the stock is overvalued by 20.4%.
Data as of September 16, 2026 (today)
Composite Fair Value
Overvalued4 of 4 models$115.29
vs. current price of $144.91(-20.4%)
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 →
$204.51
+41.1%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 →
$107.46
-25.8%Overvalued
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 →
$32.39
-77.6%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.
$27.45
-81.1%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 $144.91 is 41.1% below this estimate
View 10-year cash flow projections
| Year | Projected FCF (Free Cash Flow) | Present Value |
|---|---|---|
| Year 1 | $15.93B | $15.10B |
| Year 2 | $16.73B | $15.03B |
| Year 3 | $17.56B | $14.95B |
| Year 4 | $18.44B | $14.88B |
| Year 5 | $19.36B | $14.81B |
| Year 6 | $20.33B | $14.74B |
| Year 7 | $21.35B | $14.67B |
| Year 8 | $22.42B | $14.60B |
| Year 9 | $23.54B | $14.53B |
| Year 10 | $24.71B | $14.46B |
| Terminal Value | $842.09B | $492.61B |
What Are MRK's Key Financial Metrics?
Earnings & Growth
Current Price
$144.91
EPS (TTM)
$1.25
Forward P/E
15.2
Profit Margin
4.8%
Cash & Balance Sheet
Free Cash Flow
15.2B
EBITDA
28.9B
Book Value
$16.99
Total Debt
53.9B
What Do Analysts Say About MRK?
Low
$105.00
Average
$152.96
High
$186.00
Upside
+5.6%
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 $115.29. The stock is currently trading at $144.91, which makes it overvalued 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 overvalued. The current price of $144.91 is 20.4% above our estimated fair value of $115.29.
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 $152.96, ranging from $105.00 to $186.00. This implies 5.6% upside from the current price.