Merck Stock Sits Below Fair Value Estimate Amid EU Vaccine Approval

Merck's (MRK) stock has been on a tear, rising 16.08% over the past 90 days and 69.70% in the last year, reaching $130.20 per share.

The pharmaceutical giant recently received European Commission marketing authorization for NOBIVAC NXT HCPChFeLV, a combination feline vaccine that uses RNA particle technology to target five significant feline pathogens.

With its acquisition and licensing strategy, Merck has nearly tripled its late-phase pipeline since 2021, with potential commercial opportunities of over $50 billion by the mid-2030s, driving earnings growth.

However, some analysts suggest that the stock may be slightly undervalued at $130.20 compared to a fair value estimate of $132.78.

A DCF model from Simply Wall St, however, suggests a future cash flow value closer to $228.37, indicating Merck is significantly undervalued.