---
title: Merck (MRK) — intrinsic value and fair price
canonical: https://sweetvaluelab.com/stocks/mrk
ticker: MRK
as_of: 2026-10-17
sector: Healthcare
industry: Drug Manufacturers - General
---
# Merck (MRK)

Merck (MRK) closed at $145.97 on Oct 16, 2026, undervalued by 24% vs its model value of $192.94 (from a five-year discounted cash flow).

## Key figures

| Figure | Value |
| --- | ---: |
| Last close | $145.97 (Oct 16, 2026) |
| Model value (from a five-year discounted cash flow) | $192.94 |
| Price vs model | undervalued by 24% vs model |
| Range of that model | $113.19 – $474.29 |
| Market value | $360.1B |
| P/E (fiscal 2025) | 20.1 |
| Net margin (fiscal 2025) | 28.1% |
| Free cash flow (fiscal 2025) | $12.4B |
| Dividend yield (trailing twelve months) | 2.33% |
| Beta | 0.22 |
| Cost of capital (WACC) | 6.75% |
| Business classification | Dividend Payer (Low/slowing growth (~4% recent), High profitability (28% net margin), Pays dividends, Highly cyclical earnings) |

## On the stock lists

| List | Place | Figure | Page |
| --- | ---: | ---: | --- |
| Largest companies | #31 | $360.1B | https://sweetvaluelab.com/lists/largest-companies |

## Dividends

| Figure | Value |
| --- | ---: |
| Trailing dividend yield | 2.33% |
| Dividends per share, last 12 months | $3.40 |
| Dividends / free cash flow (fiscal 2025) | 66.1% |
| Raised | 15 years in a row |
| Growth over 5 years | 6.0% a year |
| Latest payment | $0.85, ex-date Sep 15, 2026, paid Oct 7, 2026 |

| Year of payments | Dividends per share |
| --- | ---: |
| To Sep 14, 2021 | $2.54 |
| To Sep 14, 2022 | $2.76 |
| To Sep 14, 2023 | $2.92 |
| To Sep 16, 2024 | $3.08 |
| To Sep 15, 2025 | $3.24 |
| Trailing twelve months (to Sep 15, 2026) | $3.40 |

## Valuation models

Each model's value per share and the role the engine gave it for this business. The headline above is one model's value; every other model is listed with its own, and each has a page of its own under the valuation. Computed Oct 17, 2026.

| Model | Role | Value per share | Low | High |
| --- | --- | ---: | ---: | ---: |
| DCF · Perpetuity growth · 5y | primary | $192.94 | $113.19 | $474.29 |
| DCF · Perpetuity growth · 10y | cross check | $190.29 | $116.11 | $454.67 |
| DCF · EBITDA exit · 5y | cross check | $204.56 | $151.00 | $267.57 |
| DCF · EBITDA exit · 10y | cross check | $199.40 | $143.44 | $273.59 |
| P/E · peers | cross check | $132.55 | $111.58 | $247.17 |
| P/E · own history | cross check | $90.16 | $77.08 | $107.22 |
| PEG | sanity check | $22.89 | $22.89 | $22.89 |
| EV/EBITDA · peers | cross check | $196.21 | $168.21 | $252.92 |
| EV/Revenue · peers | cross check | $178.48 | $168.34 | $219.00 |
| Earnings power value | cross check | $48.58 | $37.23 | $66.42 |
| Dividend discount | cross check | $125.52 | $79.32 | $226.98 |

## Insider activity (SEC Form 4)

Past 90 days: 0 open-market buys ($0) and 17 open-market sales ($30.0M); 10b5-1 plan sales included.

| Date | Insider | Relationship | Transaction | Shares | Value |
| --- | --- | --- | --- | ---: | ---: |
| Sep 30, 2026 | Seidman Christine E | Director | Grant / award | 55.915 | $8,125 |
| Sep 30, 2026 | Karsanbhai Surendralal Lanca | Director | Grant / award | 111.83 | $16,250 |
| Sep 30, 2026 | Coe Mary Ellen | Director | Grant / award | 206.455 | $30,000 |
| Aug 13, 2026 | Guindo Chirfi | EVP, Access, Policy & Comms | Open-market sell | 10,000 | $1.4M |
| Aug 12, 2026 | Zachary Jennifer | EVP, General Counsel | Option/RSU exercise | 41,494 | $4.9M |

## Recent SEC filings

| Filed | Form | What | Filing |
| --- | --- | --- | --- |
| Oct 13, 2026 | 8-K | 5.02 Departure/Election of Directors or Officers | https://www.sec.gov/Archives/edgar/data/310158/000031015826000237/mrk-20261009.htm |
| Aug 7, 2026 | 10-Q | Quarterly report | https://www.sec.gov/Archives/edgar/data/310158/000031015826000212/mrk-20260630.htm |
| Aug 4, 2026 | 8-K | 2.02 Results of Operations (Earnings); 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/310158/000110465926090045/tm2621496d1_8k.htm |
| May 28, 2026 | 8-K | 5.07 Submission of Matters to a Shareholder Vote | https://www.sec.gov/Archives/edgar/data/310158/000110465926067509/tm2615833d1_8k.htm |
| May 22, 2026 | 8-K | 8.01 Other Events; 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/310158/000162828026037738/mrk-20260522.htm |

## Superinvestors holding it (latest 13F)

| Manager | Quarter | Shares | Value |
| --- | --- | ---: | ---: |
| Bill Nygren | 2026-06-30 | 12,073,109 | $1.6B |
| Sarah Ketterer | 2026-06-30 | 954,932 | $122.7M |
| Kahn Brothers | 2026-06-30 | 218,182 | $28.0M |
| Prem Watsa | 2026-06-30 | 172,900 | $22.2M |

11 tracked managers in all.

## About

Merck & Co., Inc. is a global healthcare leader with operations spanning two core divisions: Pharmaceuticals and Animal Health. The Pharmaceutical segment is dedicated to human health, offering a broad spectrum of medicinal products. These cover crucial therapeutic areas such as oncology, acute hospital care, immunology, neuroscience, virology, cardiovascular conditions, and diabetes. This division also develops vital preventive vaccines for pediatric, adolescent, and adult populations. Meanwhile, the Animal Health segment focuses on the research, development, manufacturing, and marketing of veterinary medications, vaccines, and comprehensive health management solutions for animals. This division further provides innovative digital products designed for animal identification, traceability, and continuous monitoring. Merck's extensive clientele encompasses drug wholesalers, pharmacies, ho…

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Source: https://sweetvaluelab.com/stocks/mrk (SweetValueLab, free, no account). Prices and statements from Financial Modeling Prep; filings from SEC EDGAR. Research and educational data, not investment advice; nothing here is a recommendation to buy, sell or hold any security.