Merck & Co., Inc. (MRK)

Pharmaceutical Preparations

Latest Price

$130.20

TTM P/E

36.68

Normalized P/E

28.86

Div Yield

2.55%

Book Value

18.56

P/B Ratio

7.02

Valuation metrics

EPS: $7.28

Book value / share: $20.98

Formula: √(22.5 × EPS × BVPS)

Graham Number

$58.63

55% 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

72% 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

46% downside

EPS: $7.28

Target P/E: 29×

Formula: EPS × P/E

P/E Fair Value

$211.12

+62% upside

74.8% held by institutions

Institution	Shares	Value	Ownership %	Change	Filing Date
BlackRock, Inc.	225.93M	$27.18B	9.14%	+6.83M	2026-03-31
VANGUARD CAPITAL MANAGEMENT LLC	160.99M	$19.36B	6.51%	--	2026-03-31
STATE STREET CORP	119.33M	$14.45B	4.83%	-714.5K	2026-03-31
WELLINGTON MANAGEMENT GROUP LLP	84.31M	$10.14B	3.41%	-2.12M	2026-03-31
VANGUARD PORTFOLIO MANAGEMENT LLC	67.30M	$8.10B	2.72%	--	2026-03-31
GEODE CAPITAL MANAGEMENT, LLC	59.56M	$7.14B	2.41%	-489.8K	2026-03-31
CHARLES SCHWAB INVESTMENT MANAGEMENT INC	49.77M	$5.99B	2.01%	+1.20M	2026-03-31
MORGAN STANLEY	47.63M	$5.73B	1.93%	+2.69M	2026-03-31
FMR LLC	44.52M	$5.35B	1.80%	+3.68M	2026-03-31
BANK OF AMERICA CORP /DE/	30.77M	$3.70B	1.24%	+2.92M	2026-03-31