Merck & Co. Stock Price and Value Analysis

Should you buy Merck & Co. stock? (NYSE:MRK). Let's see how it does in our automated value investing analysis system.

AdvantagesDisadvantages
  • This company is a well-established bedrock.
  • This company is making money at a decent rate.
  • This company has a high dividend yield.
  • This company has wild ups and downs.
  • This stock looks overpriced.

MRK Free Cash Flow Trend

Based on historical returns, we believe that Merck & Co. can grow its free cash at a rate of about 8%. That's positive!

Free Cash Flow trendline for MRK
Free Cash Flow trendline for Merck & Co.

Inside the MRK Numbers

MRK Price
(Merck & Co. stock price per share)
$76.72
[?] MRK Fair Price
(based on intrinsic value)
$68.42
[?] MRK Safety Price (based on a variable margin of safety) $58.16
[?] PE Ratio versus Sector 226% higher than other Healthcare stocks
[?] PE Ratio versus Industry 284% higher than other Drug Manufacturers - Major stocks
[?] Cash Yield 11.30%
[?] Free Cash Flow Jitter 56%
[?] Dividend Yield 3%

Is Merck & Co. Stock on Sale?

We believe that Merck & Co. may be worth examining further. It's making money, which is a very positive sign. Is it on sale?

Merck & Co. looks overpriced right now. If you're looking for a bargain in the stock market, you should probably look elsewhere for a great deal. This might still be a great stock to own—but it's not on sale right now.

Should You Buy MRK Stock?

Does Merck & Co. have a coherent story? Does it have a plan to continue to make money? Is it worth your time? Only you can decide where to go from here. Our investment guide helps you ask the right questions, including how to buy stocks. Use these research links for more information.