The Discounted Cash Flow (DCF) valuation of Merck & Co Inc (MRK) is 119.86 USD. With the latest stock price at 84.02 USD, the upside of Merck & Co Inc based on DCF is 42.7%.
Based on the latest price of 84.02 USD and our DCF valuation, Merck & Co Inc (MRK) is a buy. Buying Merck stocks now will result in a potential gain of 42.7%.
Range | Selected | |
WACC / Discount Rate | 5.8% - 7.4% | 6.6% |
Long-term Growth Rate | 0.5% - 1.5% | 1.0% |
Fair Price | 97.46 - 155.48 | 119.86 |
Upside | 16.0% - 85.1% | 42.7% |
(USD in millions) | Projections | |||||
12-2024 | 12-2025 | 12-2026 | 12-2027 | 12-2028 | 12-2029 | |
Revenue | 64,168 | 63,167 | 64,687 | 68,834 | 70,836 | 76,182 |
% Growth | 7% | -2% | 2% | 6% | 3% | 8% |
Cost of goods sold | (12,289) | (12,097) | (12,388) | (13,183) | (13,566) | (14,590) |
% of Revenue | 19% | 19% | 19% | 19% | 19% | 19% |
Selling, G&A expenses | (10,616) | (10,450) | (10,702) | (11,388) | (11,719) | (12,604) |
% of Revenue | 17% | 17% | 17% | 17% | 17% | 17% |
Research & Development | (17,865) | (17,586) | (18,009) | (19,164) | (19,722) | (21,210) |
% of Revenue | 28% | 28% | 28% | 28% | 28% | 28% |
Net interest & other expenses | (3,462) | (3,408) | (3,490) | (3,714) | (3,822) | (4,110) |
% of Revenue | 5% | 5% | 5% | 5% | 5% | 5% |
Tax expense | (2,803) | (2,759) | (2,826) | (3,007) | (3,094) | (3,328) |
Tax rate | 14% | 14% | 14% | 14% | 14% | 14% |
Net profit | 17,133 | 16,866 | 17,272 | 18,379 | 18,913 | 20,341 |
% Margin | 27% | 27% | 27% | 27% | 27% | 27% |