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MRK Merck & Co.

pharma · valued with glm-5.2 medium conviction · deep-dived 2026-09-15

STRONG SELL
Intrinsic value$18.12
Price (at call)$144.85
Margin of safety -87.5%
vs market (rating basis) -61.6%

Model unavailable; showing baseline valuation.

⚠ LLM error: empty response; using baseline

The story

Value drivers

Revenue growth (Y1)3.1%
Terminal growth3.5%
Forecast horizon10y
Target operating margin11.6%
Years to target margin5
Sales-to-capital0.65
Beta0.50
Failure probability0.0%
Cost of capital (WACC)7.2%
Terminal WACC9.2%

Valuation bridge

PV of explicit FCFF27.87B
PV of terminal value51.67B
Equity value44.70B
÷ shares → per share$18.12

News

neutral -0.10 · 8 articles

  • Merck CEO Sees Pipeline Upside as Launches, Animal Health Drive Transformation
  • Is This LLY Stock Dip Big Enough To Be Worth Buying?
  • Why Is Pfizer Stock Paying You So Much To Wait?
  • Summit, Akeso look to shed PD-1/VEGF drug doubts with latest study results
  • Moderna’s Cancer Vaccine Win Fuels Broad Push Across Tumor Types
  • Precigen Gains 43% in 3 Months: Is It an Indication to Buy the Stock?
  • Can Pfizer Overcome Its COVID and Patent Cliff Headwinds?
  • Eli Lilly Fell Like a Rock Over the Last Month: This Big Bank Expects 45% Returns Over The Next Twelve

Projected free cash flow to the firm

YrRevenueGrowthMarginNOPATReinvestFCFFPV
1 68.65B 3.1% 11.6% 6.87B 3.18B 3.69B 3.44B
2 70.82B 3.2% 11.6% 7.09B 3.33B 3.77B 3.28B
3 73.09B 3.2% 11.6% 7.32B 3.48B 3.84B 3.12B
4 75.46B 3.2% 11.6% 7.56B 3.64B 3.92B 2.97B
5 77.95B 3.3% 11.6% 7.81B 3.80B 4.00B 2.82B
6 80.54B 3.3% 11.6% 8.07B 3.98B 4.09B 2.69B
7 83.26B 3.4% 11.6% 8.34B 4.16B 4.18B 2.56B
8 86.11B 3.4% 11.6% 8.62B 4.36B 4.27B 2.44B
9 89.08B 3.5% 11.6% 8.92B 4.56B 4.36B 2.33B
10 92.20B 3.5% 11.6% 9.23B 4.77B 4.46B 2.22B

⚠ Extreme gap to market price — large, heavily-covered stocks are rarely mispriced this much; the gap likely embeds disruption, decline, or balance-sheet risk the model underweights. Treat as a flag to investigate, not a verdict.

History

DatePriceIntrinsicMoSRating
2026-09-15$144.85 $18.12 -87.5% STRONG SELL
2026-08-13$132.92 $19.52 -85.3% STRONG SELL
2026-07-10$125.07 $65.41 -47.7% HOLD
2026-06-23$119.60 $68.21 -43.0% HOLD