Merck & Co., Inc.
$147.76
+0.81 (+0.55%) · delayed · Nov 13, 2026
Five-year price
52w $92.11 to $156.92
- Market cap
- $364.3B
- Enterprise value
- $398.7B
- P/E
- 20.3×
- 31.3× on 3y avg EPS
- EV / EBIT
- —
- FCF yield
- 3.4%
- ROIC
- —
- Debt / equity
- 0.93
- Piotroski F
- 4/9
Value scorecard · FY2025
Does it pass the value tests?
Quality
100
- –ROIC > 12% (5y avg)5y avg ROIC n/a
- ●ROE > 15% (5y avg)5y avg ROE 27.7%
- –Stable operating marginsMargin volatility n/a (σ, 5y)
- ●Earnings convert to cashFCF / net income 569% (5y avg)
- ●Growing revenueRevenue CAGR 5y 9.4%
- ●Shrinking share countDiluted shares -1.3% over 5y
Value
0
- ○P/E below 15P/E 20.3
- –EV/EBIT below 12EV/EBIT n/a
- ○FCF yield above 6%FCF yield 3.4%
- ○Price below Graham NumberGraham Number $59.12
- ○P/B below 3P/B 6.9
Safety
50
- ○Debt / equity below 0.5D/E 0.93
- ●Debt payable in < 4 yrs of earningsNet debt $34.5B
- –Interest coverage > 8xCoverage n/ax
- ●Current ratio > 1.5Current ratio 1.54
- ○Piotroski F-score ≥ 6F-score 4/9
Graham Defensive
57
- ●Adequate size (revenue > $2B)Revenue $65.0B
- ○Strong condition (current ratio ≥ 2)Current ratio 1.54
- ●Earnings stability (no loss, 10y)10 years of data
- ●Uninterrupted dividendsDividends paid every year on record
- ●Earnings growth ≥ 33% (10y, 3y avgs)EPS growth 208%
- ○Moderate P/E (≤ 15 on 3y avg EPS)P/E (3y avg) 31.3
- ○P/E × P/B ≤ 22.5Product 216.8
Valuation lab
What do you have to believe?
At $147.76, the market is pricing in about 12.0% annual free-cash-flow growth for the next decade (9% discount rate, 2.5% terminal growth).
Starting cash flow
Net debt $34.5B · 2465M shares · 5y revenue CAGR 9.4%
Intrinsic value
$115.21
Price
$147.76
Premium paid
28%
What the price implies
The market is paying for 12.0% annual cash-flow growth for 10 years at a 9.0% discount rate.
Terminal value share
61% of the value sits beyond year 10.
Financial statements
A decade of the record.
USD millions · fiscal years · source: SEC 10-K XBRL
| Line item | FY16 | FY17 | FY18 | FY19 | FY20 | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 39,807 | 40,122 | 42,294 | 39,121 | 41,518 | 48,704 | 59,283 | 60,115 | 64,168 | 65,011 |
| Gross profit | — | — | — | — | — | — | — | — | — | — |
| Operating income | — | — | — | — | — | — | — | — | — | — |
| Operating margin | — | — | — | — | — | — | — | — | — | — |
| Pre-tax income | 4,659 | 6,521 | 8,701 | 7,171 | 5,863 | 13,879 | 16,444 | 1,889 | 19,936 | 21,067 |
| Income tax | 718 | 4,103 | 2,508 | 1,565 | 1,340 | 1,521 | 1,918 | 1,512 | 2,803 | 2,804 |
| Net income | 3,920 | 2,394 | 6,220 | 9,843 | 7,067 | 13,049 | 14,519 | 365 | 17,117 | 18,254 |
| EPS (diluted) | 1.41 | 0.87 | 2.32 | 3.81 | 2.78 | 5.14 | 5.71 | 0.14 | 6.74 | 7.28 |
| Diluted shares | 2,787 | 2,748 | 2,679 | 2,580 | 2,541 | 2,538 | 2,542 | 2,547 | 2,541 | 2,507 |
Who owns it