What Is MRK Fair Value?
Merck & Co. Inc. (MRK) fair value estimate using multiple valuation models, updated daily.
As of November 2, 2026, Merck & Co. Inc. (MRK) has a composite fair value estimate of $106.94 based on four valuation models: DCF (35% weight), Graham Number (25% weight), PEG (25% weight), and DDM (15% weight). The current market price is $149.52, suggesting the stock is overvalued by 28.5%.
Data as of November 2, 2026 (today)
Composite Fair Value
Overvalued4 of 4 models$106.94
vs. current price of $149.52(-28.5%)
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 →
$183.85
+23.0%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 →
$108.20
-27.6%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 →
$32.46
-78.3%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.
$27.57
-81.6%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 $149.52 is 23.0% below this estimate
View 10-year cash flow projections
| Year | Projected FCF (Free Cash Flow) | Present Value |
|---|---|---|
| Year 1 | $14.38B | $13.63B |
| Year 2 | $15.09B | $13.56B |
| Year 3 | $15.85B | $13.50B |
| Year 4 | $16.64B | $13.44B |
| Year 5 | $17.47B | $13.37B |
| Year 6 | $18.35B | $13.31B |
| Year 7 | $19.26B | $13.25B |
| Year 8 | $20.23B | $13.18B |
| Year 9 | $21.24B | $13.12B |
| Year 10 | $22.30B | $13.06B |
| Terminal Value | $763.16B | $446.98B |
What Are MRK's Key Financial Metrics?
Earnings & Growth
Current Price
$149.52
EPS (TTM)
$0.99
Forward P/E
16.4
Profit Margin
3.6%
Cash & Balance Sheet
Free Cash Flow
0
EBITDA
16B
Book Value
$16.99
Total Debt
53.9B
What Do Analysts Say About MRK?
Low
$105.00
Average
$159.87
High
$186.00
Upside
+6.9%
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 $106.94. The stock is currently trading at $149.52, 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 $149.52 is 28.5% above our estimated fair value of $106.94.
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 $159.87, ranging from $105.00 to $186.00. This implies 6.9% upside from the current price.