Merck KGaA

MRK: XETR (DEU)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	€797.00	Jwlvk	Ncltqrmvtn

Merck KGaA Delivers Solid Q1 Results and 2022 Outlook; Shares Slightly Overvalued

Julie Utterback

May 12, 2022

Narrow-moat Merck KGaA revealed solid first-quarter results and a slightly higher outlook than we had been incorporating in our model for 2022. With those solid trends and cash flows generated since our last valuation update, we have raised our EUR fair value estimate by 7%. However, because of recent strengthening of the U.S. dollar, we are actually trimming our U.S. ADR valuation by 3%. Overall, even after the recent pullback in Merck shares, we still see shares as trading slightly above fair value.

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