Merck & Co., Inc. (MRK) intrinsic value & 10-year financials
Merck & Co., Inc. (MRK) has a Graham intrinsic value of $241.81 per share. At $143.63 on Oct 20, 2026, the stock trades 41% below that value. Over the last 10 fiscal years revenue grew 5.6% a year to $65.0B, with an average return on invested capital of 15.8%.
- Graham intrinsic value
- $241.81
- Share price (Oct 20, 2026)
- $143.63
- Price vs Graham value
- 41% below
- Market cap
- $360.1B
- Revenue (FY2025)
- $65.0B
- Revenue growth (10-yr CAGR)
- 5.6%
- ROIC (10-yr avg)
- 15.8%
- Free cash flow (FY2025)
- $12.4B
MRK 10-year financial history
| Fiscal year | Revenue | Net income | EPS (diluted) | Free cash flow | Operating margin | ROIC |
|---|---|---|---|---|---|---|
| FY2025 | $65.0B | $18.3B | $7.28 | $12.4B | — | 23.0% |
| FY2024 | $64.2B | $17.1B | $6.74 | $18.1B | — | 24.9% |
| FY2023 | $60.1B | $365.0M | $0.14 | $9.1B | — | 0.6% |
| FY2022 | $59.3B | $14.5B | $5.71 | $14.7B | — | 22.5% |
| FY2021 | $48.7B | $13.0B | $5.14 | $8.7B | — | 23.6% |
| FY2020 | $48.0B | $7.1B | $2.78 | $5.6B | — | 16.1% |
| FY2019 | $46.8B | $9.8B | $3.81 | $10.0B | — | 23.0% |
| FY2018 | $42.3B | $6.2B | $2.32 | $8.3B | — | 12.9% |
| FY2017 | $40.1B | $2.4B | $0.87 | $4.6B | — | 4.3% |
| FY2016 | $39.8B | $3.9B | $1.41 | $8.8B | — | 6.7% |
Source: annual 10-K filings on SEC EDGAR. Figures in USD.
Executive summary
Merck & Co. has demonstrated mature, steady growth, with revenue compounding at 5.6% annually over the past decade.
Merck & Co. has earned high returns on invested capital, averaging 15.8% ROIC over the available history. High ROIC is consistent with a durable franchise, but it is not by itself proof of an economic moat.
Over the decade, Merck & Co. shows that the company has leveraged its balance sheet to sustain operations.
Benjamin Graham lens
Under Benjamin Graham's formula using SEC EDGAR fundamentals, Merck & Co. is modeled at 15.0% normalized earnings growth with a 5.1% bond-yield adjustment. The resulting Graham intrinsic value estimate is $241.81 per share.