Merck & Co Inc (MRK)
UndervaluedFundamental
58
Price
$145.27
Market Cap
$369.78B
Part 1 · What the company is worth
Overview
Merck & Co., Inc. operates as a healthcare company worldwide. It offers human health pharmaceutical for various areas under the Keytruda, Keytruda Qlex, Welireg, Gardasil, ProQuad, M-M-R II, Varivax, Vaxneuvance, Capvaxive, RotaTeq, Pneumovax 23, Bridion, Prevymis, Dificid, Zerbaxa, Winrevair, Adempas/ Verquvo, Ohtuvayre, Lagevrio, Isentress/Isentress HD, Delstrigo, Pifeltro, Belsomra, Januvia, and Janumet brands. The company also provides veterinary pharmaceuticals, vaccines and health management solutions and services, such as livestock products under the Nuflor, Bovilis/Vista, Bovilis Cryptium, Banamine, Estrumate, Matrix, Resflor, Zuprevo, Revalor, Safe-Guard, M+Pac, Porcilis, Circumvent, Nobilis/Innovax, Paracox and Coccivac, Exzolt, Slice, Imvixa, Clynav, Aquavac/Norvax, Aquaflor, Flexolt brands; Allflex Livestock Intelligence solutions; and companion animal products under the Bravecto One-Month, Bravecto Injectable/Quantum, Bravecto TriUNO, Bravecto Plus, Sentinel Spectrum, Sentinel Flavor Tabs, Numelvi, Optimmune, Nobivac NXT, GilvetMab, Otomax, Mometamax, Mometamax Ultra, Posatex, Caninsulin/Vetsulin, Panacur, Safeguard, Regumate, Prestige, Scalibor/Exspot, Sure Petcare, and Home Again brands. It has development and commercialization agreement for three of Daiichi Sankyo's deruxtecan ADC candidates; AstraZeneca PLC to co-development and co-commercialize AstraZeneca's Lynparza products for multiple cancer types; licensed to develop, manufacture and commercialize LM-299, a novel investigational PD-1/VEGF bispecific antibody from LaNova; and collaboration agreement with Eisai Co., Ltd., Bayer AG, and Ridgeback Biotherapeutics LP, as well Moderna, Inc. Merck & Co., Inc. has strategic collaboration with Infinimmune, Inc. to discover and develop antibodies against multiple therapeutic targets. The company was founded in 1891 and is headquartered in Rahway, New Jersey.
No editorial profile for this company yet
Direct competitors
Who this company fights with for the same customers
Generated with artificial intelligence on September 19, 2026, shared with all users
Its PD-1 inhibitor Opdivo competes head-to-head with Keytruda for the same oncologists and the same lung, melanoma and kidney cancer patients.
Imfinzi and its wider oncology portfolio compete with Keytruda in lung, bladder and liver cancer, in the same hospital formularies worldwide.
Its Prevnar franchise is the direct rival of Merck's Capvaxive and Vaxneuvance for adult pneumococcal vaccination, and the two also compete across oncology.
Its Innovative Medicine arm competes with Merck across oncology and immunology branded drugs sold to the same payers and prescribers.
Tecentriq and Roche's broad cancer-drug portfolio target the same immuno-oncology indications and the same reimbursement budgets as Merck's.
Competes with Merck in adult and adolescent vaccines — including HPV and shingles — selling to the same public health buyers and pharmacy channels.
Balance Sheet & Liquidity
Revenue
$66.57B
Trailing 12 months (through 6/30/2026)
Net Income
$3.17B
Trailing 12 months (through 6/30/2026)
Free Cash Flow
$12.36B
Total Equity
$52.61B
Total Liabilities
$84.20B
Current Ratio
1.32
Interest Coverage
-
Debt/EBITDA
1.87
Earnings Per Share
Revenue & Net Income
Free Cash Flow
Income Breakdown
Historical statement
Margins over time
Debt over time
How heavy the debt is
Growth grid
Growth — Revenue
Fair Value Estimation
Fair Value
$205.44
Current Price
$145.27
Margin of Safety
+29.3%
Fair Value Range
$133.53 - $277.34
Spread across the valuation methods used, not a statistically calibrated confidence interval.
Estimation Methods
Valuation Metrics
P/E Ratio
116.22
ROE
34.7%
P/B Ratio
8.55
P/FCF
22.31
Gross Margin
73.0%
ROIC
-
Profitability Radar
Value Creation (Economic Moat)
ROIC
-
WACC
7.2%
ROIC − WACC
-
Fundamental Analysis Criteria
Passed (15)
- EPS shows upward trend
- EPS CAGR 9.21%
- Price CAGR 10.13%
- Gross margin 73.0%
- P/FCF 22.31
- Debt/equity ratio
- Positive free cash flow
- CapEx intensity
- Current ratio
- Debt/EBITDA
- Return on tangible assets
- Revenue growth 5Y 9.4%
- Earnings surprise, average 21.1%
- Earnings quality (operating cash flow / net income) 6.29
- Share dilution -1.3%
Failed (8)
- P/B ratio 8.55
- Low reliance on intangibles
- Price below Graham Number
- DCF valuation (Overvalued)
- ROE 6.6%
- PEG ratio 5.43
- Net margin trend 4.8% vs 25.8%
- Piotroski F-Score 4/9
Unavailable (4)
- ROIC –
- Dividend payout –
- Operating margin –
- Interest coverage
Piotroski F-Score
Mixed signals: some areas need attention
Earnings Quality
High quality: earnings backed by cash
Share Dilution
Buying back shares. Shareholder friendly
Institutional Holdings
Governance
Executive Team
| Name | Title | Age |
|---|---|---|
| Mr. Robert M. Davis J.D. | Chairman, President & CEO | 58 |
| Ms. Caroline A. Litchfield | Executive VP & CFO | 56 |
| Ms. Jennifer L. Zachary J.D. | Executive VP & General Counsel | 47 |
| Dr. Dean Y. Li M.D., Ph.D. | Executive VP & President of Merck Research Laboratories | 62 |
| Mr. Dalton E. Smart III | Senior VP of Finance, Principal Accounting Officer & Global Controller | 58 |
| Mr. Gaurav K. Gupta | Executive Vice President and Chief Information & Digital Officer | - |
| Mr. Peter Dannenbaum | Vice President of Investor Relations | - |
| Mr. Chirfi Guindo | Executive Vice President of Strategic Access, Policy & Communications | 59 |
| Ms. Betty D. Larson | Executive VP & Chief Human Resources Officer | 49 |
| Mr. Richard R. DeLuca Jr. | Executive VP & President of Merck Animal Health | 62 |
Audit Risk
7
Board Risk
7
Compensation Risk
3
Shareholder Rights Risk
2
Documents
- View document
Annual Report (10-K)
A yearly overview of the business, its financial results, and the risks it faces.
Filed on 2026-02-24
- View document
Quarterly Report (10-Q)
A snapshot of financial performance for the most recent three-month period.
Filed on 2026-08-07
- View document
Current Report (8-K)
An announcement of a major event, such as a leadership change or big news.
Filed on 2026-10-13
via SEC EDGAR
Income History
via SEC EDGAR
Part 2 · The price and its context
This part shows how the price has behaved, not whether the company is worth owning. Inside: technical analysis, potential, historical drawdowns, gamma exposure.
Market Reaction Profile
How much MRK moves, measured on its daily prices.
More volatile than 42% of the tracked stocks (90-day volatility).
- Volatility 30d
- 26.6%
- Volatility 90d
- 33.2%
- Beta vs S&P 500 (1y)
- 0.14Correlation 0.06
- Max drawdown (12m)
- -11.9%
- ATR (14d, % of price)
- 2.97%
Earnings reactions
How MRK moved around its past quarterly results.
Next earnings release
Oct 29, 2026 · In 5 days · Before the open
EPS estimate: 2.09Revenue estimate: $17.3B
What usually happens
- Over the last 12 releases the stock moved a median of 2.0% the next day, up or down.
- Next-day moves: up 6, down 6 (out of 12).
- Of the 4 releases that beat estimates, the stock fell the next day after 2.
Release history
| Date | When | EPS est. | EPS actual | Surprise | Gap | 1 day | 5 days |
|---|---|---|---|---|---|---|---|
| Aug 4, 2026 | Before the open | -0.27 | -0.13 | +52.3% | +0.5% | +0.2% | +2.5% |
| Apr 30, 2026 | Before the open | -1.52 | -1.28 | +16.0% | -1.5% | -1.6% | +2.4% |
| Feb 3, 2026 | Before the open | 2.03 | 2.09 | +3.0% | -1.5% | +2.2% | +3.8% |
| Oct 30, 2025 | Before the open | 2.37 | 2.68 | +13.1% | -2.3% | -0.3% | -2.5% |
| Jul 29, 2025 | Before the open | n/a | n/a | n/a | -5.0% | -1.7% | -5.0% |
| Apr 24, 2025 | Before the open | n/a | n/a | n/a | -0.6% | +1.4% | +8.2% |
| Feb 4, 2025 | Before the open | n/a | n/a | n/a | -10.8% | -9.1% | -13.4% |
| Oct 31, 2024 | Before the open | n/a | n/a | n/a | -3.7% | -2.4% | -3.9% |
| Jul 30, 2024 | Before the open | n/a | n/a | n/a | -3.4% | -9.8% | -12.1% |
| Apr 25, 2024 | Before the open | n/a | n/a | n/a | +2.1% | +2.9% | +1.4% |
| Feb 1, 2024 | Before the open | n/a | n/a | n/a | +2.4% | +4.6% | +5.5% |
| Oct 26, 2023 | Before the open | n/a | n/a | n/a | -0.5% | +1.9% | -0.8% |
Release dates from SEC 8-K filings.
Updated 10/24/2026
Historical statistics for educational purposes only. They are not forecasts and not investment advice.
Price reaction to the news
Latest news on MRK and what the price did next.
- 9/28/2026PositiveMerck, accordo di licenza da oltre 2 miliardi di dollari con SciBrunch Therapeutics
- +1 day
- +0.7%
- +3 days
- -1.2%
- 8/20/2026PositiveModerna limita i rialzi, ma le azioni Merck restano da comprare
Published while the US market was open: the move of that day cannot be split into before and after the news, so no figure is shown.
- 8/19/2026PositiveMerck, Moderna Melanoma Vaccine Study Succeeds
Published while the US market was open: the move of that day cannot be split into before and after the news, so no figure is shown.
- 4/21/2026NegativeWhy Is Merck Stock Falling Tuesday?
Published while the US market was open: the move of that day cannot be split into before and after the news, so no figure is shown.
- 4/7/2026NegativeMerck Lowered Terns Pharmaceuticals Offer Price After Trial Data Review
Published while the US market was open: the move of that day cannot be split into before and after the news, so no figure is shown.
- 4/1/2026PositiveMerck Locks Infinimmune Alliance To Chase Next-Gen Antibody Drugs
- +1 day
- -0.3%
- +3 days
- -0.9%
- 3/25/2026PositiveMerck to Buy Terns for $6.7B to Grow in Blood Cancers
Published while the US market was open: the move of that day cannot be split into before and after the news, so no figure is shown.
Return of the stock minus return of SPY over the same days. A news item close to a price move did not necessarily cause it. Historical data for educational purposes only, not investment advice.
Latest News
Recent headlines for MRK.
- 26d agoPOSITIVEMerck, accordo di licenza da oltre 2 miliardi di dollari con SciBrunch Therapeutics
Merck has entered into a licensing agreement with SciBrunch Therapeutics for a potential oncology treatment. The deal could be worth over $2 billion, signaling Merck's strategic investment in expanding its cancer drug pipeline. This move aims to bolster Merck's position in the competitive oncology market by acquiring promising early-stage assets. Investors will be watching the clinical development closely, as successful progression could lead to significant future revenue streams and enhance Merck's long-term growth prospects.
- 8/20/2026POSITIVEModerna limita i rialzi, ma le azioni Merck restano da comprare
Merck & Co. (MRK) shares are positioned for a rally to $179 in the coming months, according to Morgan Stanley analyst Terence Flynn. This optimism stems from the strong performance of a combination therapy involving Merck's Keytruda and Moderna's (MRNA) experimental cancer drug in a late-stage trial. The trial demonstrated efficacy in high-risk melanoma patients, a significant breakthrough. Morgan Stanley's bullish stance, reiterated in a research note dated August 20th, highlights the potential for Merck's stock to continue its upward trajectory, building on recent positive developments in its oncology pipeline.
- 8/19/2026POSITIVEMerck, Moderna Melanoma Vaccine Study Succeeds
Merck and Moderna have reported encouraging outcomes from a Phase 3 trial for their collaborative personalized mRNA melanoma vaccine. The study demonstrated a substantial reduction in the recurrence rate of melanoma, the most aggressive skin cancer. This success in a late-stage trial suggests a promising new therapeutic avenue for Merck, potentially bolstering its oncology pipeline and future revenue streams. Investors will be watching for regulatory filings and potential market launch timelines, which could significantly impact the company's valuation.
- 5/18/2026NEUTRALMerck Eyes $6 Billion in Seven-Part Bond Sale for Terns Deal
Merck & Co. is planning a significant debt offering, aiming to raise approximately $6 billion through a seven-part bond sale. This move is primarily intended to fund its acquisition of Terns Pharmaceuticals Inc. The bond sale is structured for investment-grade investors, indicating Merck's strong credit profile. While the acquisition itself may signal strategic growth, the bond issuance represents a financing activity that does not inherently boost or detract from the company's immediate stock value, thus maintaining a neutral short-term outlook for investors.
- 4/21/2026NEGATIVEWhy Is Merck Stock Falling Tuesday?
Merck & Co., Inc. stock experienced a significant downturn on Tuesday following the announcement that its Phase 3 LITESPARK-012 trial for advanced renal cell carcinoma did not meet its primary endpoints. This clinical trial failure represents a major setback for the company's oncology pipeline and future revenue projections. Investors are reacting negatively to the news, as the drug candidate was seen as a key growth driver. The lack of positive trial results will likely lead to downward revisions in earnings estimates and could impact the stock's valuation.
- 4/7/2026NEGATIVEMerck Lowered Terns Pharmaceuticals Offer Price After Trial Data Review
Merck & Co. has lowered its offer price for Terns Pharmaceuticals following a review of TERN-701 trial data. While Merck maintains its strategic interest in Terns, particularly concerning its potential in Chronic Myeloid Leukemia (CML) treatments and amid ongoing competition, the price adjustment signals a potential recalibration of the deal's valuation based on new clinical insights. Investors will monitor how this revised offer impacts the finalization of the acquisition and Merck's competitive positioning in the oncology space.
- 4/1/2026POSITIVEMerck Locks Infinimmune Alliance To Chase Next-Gen Antibody Drugs
Merck has entered into a strategic alliance with Infinimmune to leverage the latter's Anthrobody platform for the development of next-generation antibody drugs. This collaboration aims to harness human-derived antibodies, potentially leading to more effective and targeted therapeutics. The partnership signifies Merck's commitment to innovation in its biologics pipeline and its pursuit of novel drug discovery technologies. Investors will be watching for clinical trial progress and the potential for breakthrough treatments stemming from this alliance.
- 3/25/2026POSITIVEMerck to Buy Terns for $6.7B to Grow in Blood Cancers
Merck & Co. has announced a definitive agreement to acquire Terns Pharmaceuticals for $6.7 billion. This strategic move aims to bolster Merck's oncology portfolio by integrating Terns' promising leukemia treatment pipeline. The acquisition is particularly significant as Merck faces the upcoming patent expiration of its top-selling cancer drug, Keytruda. Investors will be watching how this integration impacts Merck's future revenue streams and its competitive position in the lucrative blood cancer market.