Merck & Company (MRK)
What the price implies
A reverse DCF: instead of guessing a fair value, it asks what growth today's price already assumes. How it works.
At a market value of $353.0B, Merck & Company's free cash flow of $12.4B (fiscal 2025) would need to grow about 10% a year for the stock to be worth today's price. That is faster than the company has grown its free cash flow over the last 9 years.
Assumes a 9% discount rate and 3% growth after year 10, on free cash flow (operating cash flow minus capital spending) from Merck & Company's SEC filings. Change any assumption, or model revenue and margins instead, in the Modeling tab, or try your own numbers in the reverse DCF calculator.
Fundamental grade
Five factors scored 1 to 9 from MRK's latest numbers, weighted into one grade. It describes the business, not whether the stock is a buy.
Key numbers
Results from SEC filings
Fiscal years, from Merck & Company's 10-K filings. The deep dive has 15+ years, quarters and every line.
| Fiscal year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $48.7B | $59.3B | $60.1B | $64.2B | $65.0B |
| Net income | $13.0B | $14.5B | $365M | $17.1B | $18.3B |
| Free cash flow | $8.7B | $14.7B | $9.1B | $18.1B | $12.4B |
| EPS (diluted) | $5.14 | $5.71 | $0.14 | $6.74 | $7.28 |
| Operating margin | — | — | — | — | — |
Where the revenue comes from
Revenue by segments, fiscal 2025.
Superinvestors who own MRK
From each investor's latest 13F filing (what a 13F shows). 17 of the investors we track hold it.
| Investor | Last quarter | Value | % of portfolio | Quarter |
|---|---|---|---|---|
| Bill Nygren Harris Associates LP |
Trimmed | $1.6B | 2.1% | Q2 2026 |
| Cliff Asness AQR Capital Management |
Trimmed | $1.0B | 0.36% | Q2 2026 |
| Bill Smead Smead Capital Management |
Trimmed | $300M | 6.4% | Q2 2026 |
| Charles Brandes Brandes Investment Partners, LP |
Trimmed | $246M | 1.7% | Q2 2026 |
| Hersh Cohen ClearBridge Investments |
Trimmed | $73M | 0.06% | Q2 2026 |
| Joel Greenblatt Gotham Asset Management |
Added | $68M | 0.16% | Q2 2026 |
| Thomas Kahn Kahn Brothers Group |
Trimmed | $28M | 4.4% | Q2 2026 |
| Tom Steyer Farallon Capital Management LLC |
Trimmed | $26M | 0.12% | Q2 2026 |
| Prem Watsa Fairfax Financial Holdings |
Held | $22M | 0.84% | Q2 2026 |
| Dodge & Cox Dodge & Cox |
Trimmed | $17M | 0.01% | Q2 2026 |
| Mario Gabelli GAMCO Investors |
Trimmed | $8M | 0.07% | Q2 2026 |
| PRIMECAP Management PRIMECAP Management Co |
Trimmed | $5M | 0.00% | Q2 2026 |
Insider buying
Open-market purchases by Merck & Company's executives and directors in the last 12 months, from SEC Form 4 filings. What insider buying tells you.
| Date | Insider | Shares | Price | Value |
|---|---|---|---|---|
| Mar 10, 2026 | Ro Khanna |
0 | $117.14 | — |
| Mar 10, 2026 | Ro Khanna |
0 | $117.14 | — |
| Feb 4, 2026 | Josh Gottheimer |
0 | $118.35 | — |
| Feb 4, 2026 | Josh Gottheimer |
0 | $118.35 | — |
| Dec 19, 2025 | Gilbert Ray Cisneros, Jr. |
0 | $100.92 | — |
| Dec 19, 2025 | Gilbert Ray Cisneros, Jr. |
0 | $100.92 | — |
| Nov 18, 2025 | Gilbert Ray Cisneros, Jr. |
0 | $96.61 | — |
| Nov 18, 2025 | Gilbert Ray Cisneros, Jr. |
0 | $96.61 | — |
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In the full deep dive
Questions
What growth does Merck & Company's stock price imply?
At a market value of $353.0B, Merck & Company would need its free cash flow to grow about 10% a year for 10 years (discounted at 9%, 3% growth after that) to be worth today's price. Over the last 9 years its free cash flow grew 4% a year.
Are Merck & Company insiders buying the stock?
8 open-market insider purchases of MRK in the last 12 months, from SEC Form 4 filings.
Which superinvestors own Merck & Company?
17 of the superinvestors Investingly tracks hold MRK in their latest 13F, including Bill Nygren, Cliff Asness, Bill Smead.
Prices and ratios as of Oct 7, 2026; statements from SEC filings. Information only, not investment advice. Superinvestor holdings come from 13F filings, which are filed up to 45 days after each quarter ends.