Merck & Co Inc (MRK) Quote - XNYS | Morningstar

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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Corporate Tax Hikes Are Very Likely to Come for U.S. Equities

Equity Analyst Preston Caldwell

Preston Caldwell Equity Analyst

Analyst Note

| Preston Caldwell | May 11, 2021

We expect a U.S. corporate tax hike to be passed this year. Our probability-weighted forecast is an increase in the statutory tax rate to 26% from 21% currently. Our equity analysts will be incorporating the new tax rate into their valuation models over the coming weeks, but our preliminary analysis suggests a mid-single-digit impact to the average U.S. equity valuation.

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Company Profile

Business Description

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 is growing as a major contributor to overall sales. The company also has a substantial vaccine business, with treatments to prevent hepatitis B and pediatric diseases as well as HPV and shingles. Additionally, Merck sells animal health-related drugs. From a geographical perspective, close to 40% of the firm's sales are generated in the United States.

Contact

2000 Galloping Hill Road
Kenilworth, NJ, 07033

T +1 908 740-4000

investor_relations@merck.com

Sector Healthcare

Industry Drug Manufacturers - General

Most Recent Earnings Mar 31, 2021

Fiscal Year End Dec 31, 2021

Stock Type High Yield

Employees 74,000

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