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Merck DCF Stock Analysis

Here’s my assumptions for $MRK ( ▲ 0.34% ) :

Risk Free Rate (10 Years Interest Rate Swap): 4.1%

Risk Premium (Taken from the Aswath Damodaran equity premium spreadsheet): 4.33%

Interest Rate Spread on The Risk free rate ( For the cost of debt calculation): 1%

Historical Data

Revenue growth in the last 10 years (CAGR): 4.97%

Earnings growth in the last 10 years (CAGR): 14.44%

Unlevered Free Cash Flow growth in the last 10 years (CAGR): 4.39%

Future Assumptions

End of Year FCF growth: 3%

Growth until end of 2026: 4%

Growth until end of 2034: 3%

Perpetual growth: 2.5%

Net Debt: 25.616B

Restricted Stock Units Present Value Assumption: $0.998B

Stock Valuation based on these assumptions: $171

Last update 08/11/2025

All the content in this newsletter should be taken as informational content only. THIS IS NOT FINANCIAL ADVICE! Do your own Due Diligence before investing or contact a professional financial advisor.

I don’t have a position in Merck (MRK) and I don’t plan to add a position in the coming days.