MRK
Merck & Co Inc
Price:  
84.02 
USD
Volume:  
14,727,633
United States | Pharmaceuticals

Merck DCF Valuation - Growth Exit 5Y

42.7 %
Upside

What is the DCF valuation of Merck?

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 Rate5.8% - 7.4%6.6%
Long-term Growth Rate 0.5% - 1.5%1.0%
Fair Price97.46 - 155.48119.86
Upside16.0% - 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
12-202412-202512-202612-202712-202812-2029
Revenue64,16863,16764,68768,83470,83676,182
% Growth
7%-2%2%6%3%8%
Cost of goods sold(12,289)(12,097)(12,388)(13,183)(13,566)(14,590)
% of Revenue19%19%19%19%19%19%
Selling, G&A expenses(10,616)(10,450)(10,702)(11,388)(11,719)(12,604)
% of Revenue17%17%17%17%17%17%
Research & Development(17,865)(17,586)(18,009)(19,164)(19,722)(21,210)
% of Revenue28%28%28%28%28%28%
Net interest & other expenses(3,462)(3,408)(3,490)(3,714)(3,822)(4,110)
% of Revenue5%5%5%5%5%5%
Tax expense(2,803)(2,759)(2,826)(3,007)(3,094)(3,328)
Tax rate14%14%14%14%14%14%
Net profit17,13316,86617,27218,37918,91320,341
% Margin27%27%27%27%27%27%