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%.

Is Merck a buy or a sell?

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%

84.02 USD

Stock Price

119.86 USD

Fair Price

REVENUE & EXPENSES

CAPEX

D&A

WORKING CAPITAL

TERMINAL VALUE

Merck DCF Valuation: Revenue & Expenses Forecast

(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%