Merck & Co., Inc.Opportunity Rank #74(MRK) Intrinsic Value & DCF Analysis (2026)
Current Price
$123.54
Last updated: Jul 13, 2026
Price vs Intrinsic Value
Fundamental Score
Weighted across 6 signals
Narrative Score
-6 vs previous
Trend Score
As of 2026-07-10
The intrinsic value of Merck & Co., Inc. (MRK) is estimated at $154.15 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $123.54, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a 3.87% long-term growth rate and an 8.00% discount rate (calculated: 6.96%), reflecting expected future free cash flow and cost of capital.
The intrinsic value of Merck & Co., Inc. (MRK) is estimated at $154.15 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $123.54, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a 3.87% long-term growth rate and an 8.00% discount rate (calculated: 6.96%), reflecting expected future free cash flow and cost of capital.Valuation Details
Capital Efficiency
The company is earning below its required return. This may indicate inefficient use of capital or excess cash that isn't being reinvested.
Fundamental Details
Narrative Details
Trend Details
Investment Coach
- Monitor whether valuation discount remains above 10%.
- Track ROIC vs WACC spread for sustained improvement.
- Follow narrative trend for meaningful shifts in the score direction.
Free Cash Flow (in millions)
How Intrinziq Estimates Fair Value
Intrinziq estimates Merck & Co., Inc.'s intrinsic value using a discounted cash flow (DCF) model based on free cash flow trends and a market-based discount rate. The model projects future cash flows over ten years and discounts them using a market return assumption to estimate fair value.
Merck & Co., Inc.Healthcare
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, hospitals, and government agencies. It also serves managed healthcare organizations, including health maintenance organizations (HMOs) and pharmacy benefit managers, as well as various other institutional clients. Additionally, the company supplies products to individual physicians and their distributors, veterinarians, and livestock producers. The organization actively engages in strategic collaborations with companies such as AstraZeneca PLC, Bayer AG, Eisai Co., Ltd., Ridgeback Biotherapeutics, and Gilead Sciences, Inc. These partnerships are specifically aimed at the joint development and commercialization of prolonged-acting therapies for HIV. Established in 1891, Merck & Co., Inc. maintains its corporate headquarters in Kenilworth, New Jersey.