Merck & Co., Inc. (MRK)

Pharmaceutical Preparations

Latest Price

$145.31

TTM P/E

116.25

Normalized P/E

36.16

Div Yield

2.31%

Book Value

16.98

P/B Ratio

8.56

Valuation metrics

EPS: $7.28

Book value / share: $20.98

Formula: √(22.5 × EPS × BVPS)

Graham Number

$58.63

60% downside

Norm. op. income: $14.7B (median of 7yr)

Tax rate: 14%

Discount rate: 10%

Growth assumption: zero (EPV is a no-growth value)

Earnings Power Value

$36.69

75% downside

Base FCF: $12.4B (median of recent 5yr)

Growth: 5%/yr (median YOY, capped at 25%)

Discount rate: 10%

Terminal growth: 3%

Projection horizon: 10 years

DCF Fair Value

$70.20

52% downside

EPS: $7.28

Target P/E: 36×

Formula: EPS × P/E

P/E Fair Value

$262.08

+80% upside

81.4% held by institutions

Institution	Shares	Value	Ownership %	Change	Filing Date
BlackRock, Inc.	227.00M	$29.17B	9.19%	+1.07M	2026-06-30
Vanguard Capital Management LLC	161.32M	$20.73B	6.53%	+335.6K	2026-06-30
State Street Corp	120.41M	$15.57B	4.88%	+1.09M	2026-06-30
Wellington Management Group LLP	86.25M	$11.08B	3.49%	+1.93M	2026-06-30
Vanguard Portfolio Management LLC	67.74M	$8.70B	2.74%	+434.7K	2026-06-30
Geode Capital Management, LLC	60.74M	$7.79B	2.46%	+1.19M	2026-06-30
Sixth Street Partners Management Company, L.P.	54.37M	$6.99B	2.20%	--	2026-06-30
Charles Schwab Investment Management Inc	54.37M	$6.99B	2.20%	+4.60M	2026-06-30
Morgan Stanley	48.64M	$6.25B	1.97%	+1.01M	2026-06-30
FMR LLC	45.44M	$5.84B	1.84%	+924.3K	2026-06-30