MRK Merck & Co.
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 growth | 3.5% |
| Forecast horizon | 10y |
| Target operating margin | 11.6% |
| Years to target margin | 5 |
| Sales-to-capital | 0.65 |
| Beta | 0.50 |
| Failure probability | 0.0% |
| Cost of capital (WACC) | 7.2% |
| Terminal WACC | 9.2% |
Valuation bridge
| PV of explicit FCFF | 27.87B |
| PV of terminal value | 51.67B |
| Equity value | 44.70B |
| ÷ shares → per share | $18.12 |
News
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- 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
| Yr | Revenue | Growth | Margin | NOPAT | Reinvest | FCFF | PV |
|---|---|---|---|---|---|---|---|
| 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.