MerckLIM:MRK 73 FCF Yield % is 4.42 as of Jun. 30, 2026, which is 3% below its 10-year median of 4.54. GuruFocus rates LIM:MRK with a GF Score™ of 73/100 and a GF Value™ of $109.83 (Fairly Valued). The stock has 7 warning signs investors should review. Among 1,001 Drug Manufacturers companies, Merck ranks better than 71.13% on this metric.
FCF Yield % is calculated as Free Cash Flow divided by Market Capitalization. It is a financial solvency ratio that compares the free cash flow a company is expected to earn against its market value.
As of today, Merck's Trailing 12-Month Free Cash Flow is $14,115 Mil, and Market Cap is $317,768 Mil. Therefore, Merck's FCF Yield % for today is 4.42%.
The historical rank and industry rank for Merck's FCF Yield % or its related term are showing as below:
LIM:MRK'
s FCF Yield % Range Over the Past 10 Years
Min: 2.59 Med: 4.54 Max: 8.86
Current: 4.42
During the past 13 years, the highest FCF Yield % of Merck was 8.86%. The lowest was 2.59%. And the median was 4.54%.
LIM:MRK's FCF Yield % is ranked better than 71.13% of 1001
companies
in the Drug Manufacturers industry
Industry Median: 0.65
vs LIM:MRK: 4.42
Merck's FCF Margin % for the quarter that ended in Mar. 2026 was 17.97%.
Merck FCF Yield % Explanation
Similar to Earnings Yield %, FCF Yield % is financial solvency ratio. A lower ratio suggests a less attractive investment, indicating that investors might not receive substantial returns in proportion to their investment. Conversely, a high free cash flow yield signals that a company generates sufficient cash to comfortably meet its debts, obligations, and dividend payments, making it a promising investment choice.
Merck FCF Yield % Related Terms
Merck FCF Yield % Historical Data
* Premium members only.
The historical data trend for Merck's FCF Yield % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
LIM:MRK vs AMGN, ABBV, GILD: FCF Yield % Comparison
For the Drug Manufacturers - General subindustry, Merck's FCF Yield %, along with its competitors' market caps and FCF Yield % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Merck FCF Yield % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Merck's FCF Yield % distribution charts can be found below:
* The bar in red indicates where Merck's FCF Yield % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Merck (LIM:MRK) has a FCF Yield % of 4.42 as of Jun. 30, 2026. FCF Yield is calculated as Free Cash Flow divided by Market Capitalization. View historical data on Merck and its competitors. This is near median its historical median of 4.54. Over the past decade, Merck's FCF Yield % has ranged from 2.59 to 8.86. According to the industry distribution chart, Merck ranks #289 out of 1001 companies in the Drug Manufacturers industry, placing it in the top 28.9%.
Is Merck's FCF Yield % too high?
Merck's current FCF Yield % of 4.42 is near median its 10-year median of 4.54. Over the past 10 years, this metric has ranged from a low of 2.59 to a high of 8.86. The Drug Manufacturers industry median FCF Yield % is 0.65. Merck's value of 4.42 is 580% above this industry median. Based on the distribution chart, Merck ranks #289 out of 1001 companies in the Drug Manufacturers industry, which is above the industry midpoint. Overall, Merck has a GF Score™ of 73/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Merck's FCF Yield % compare to AMGN and ABBV?
According to the Drug Manufacturers industry distribution chart, Merck ranks #289 out of 1001 companies for FCF Yield %. This puts Merck in the upper half of its industry. The industry median FCF Yield % is 0.65. Merck's value of 4.42 is 580% above this benchmark. Historically, Merck's own FCF Yield % has ranged from 2.59 to 8.86 over the past decade. While the company's 10-year median is 4.54 vs. the industry median of 0.65, Merck has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good FCF Yield % for a Drug Manufacturers company?
The median FCF Yield % among Drug Manufacturers companies is 0.65, based on 1,001 companies in the industry. Companies in the top quartile (top 25%) have a FCF Yield % significantly above this median, while those in the bottom quartile fall well below. However, FCF Yield % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Merck's current FCF Yield % of 4.42 is 580% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high FCF Yield % mean?
A high FCF Yield % can signal that a stock is expensive relative to its fundamentals. FCF Yield is calculated as Free Cash Flow divided by Market Capitalization. View historical data on Merck and its competitors. For the Drug Manufacturers industry, the median FCF Yield % is 0.65 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Merck's current FCF Yield % is 4.42, which is near median its own 10-year median of 4.54. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Merck stock overvalued right now?
Based on GuruFocus' analysis, Merck (LIM:MRK) is currently considered Fairly Valued. The stock's GF Value™ is $109.83, compared to a current price of $120.00 — trading 9.3% above its estimated fair value. The current FCF Yield % is 4.42, which is near median its 10-year median of 4.54 and 580% above the Drug Manufacturers industry median of 0.65. Merck's overall GF Score™ is 73/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is FCF Yield % calculated?
FCF Yield % is calculated from a company's financial statements. For Merck (LIM:MRK), the current FCF Yield % is 4.42 as of Jun. 30, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Merck (LIM:MRK) Overvalued in 2026?
Based on GuruFocus' analysis, Merck stock appears to be overvalued.
The current stock price of $120.00 is trading 9.3% above its estimated GF Value™ of $109.83.
GuruFocus considers Merck to be Fairly Valued.
Key valuation signals for LIM:MRK:
FCF Yield %: 4.42 (near median its 10-year median of 4.54)
GF Value™: $109.83 vs. price of $120.00 (9.3% above fair value)
Industry Position: 580% above the Drug Manufacturers median (#289 of 1001)
No single metric tells the full story. See the LIM:MRK stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Merck makes pharmaceutical products to treat several conditions in a number of therapeutic areas, including cardiometabolic disease, cancer, and infections. Within cancer, the firm's immuno-oncology platform, led by Keytruda, is a major contributor to overall sales. The company also has a substantial vaccine business aimed at preventing pediatric diseases, as well as Gardasil for human papillomavirus. Additionally, Merck sells animal health-related drugs. From a geographical perspective, 47% of the company's sales are generated from US human health (pharmaceuticals and vaccines).
73GF Score
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