Metro Valuation

Is MEO undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of MEO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Discounted Cash Flow
Simply Wall St
€4.20
Fair Value
3.3% undervalued intrinsic discount
8
Number of Analysts

Below Fair Value: MEO (€4.06) is trading below our estimate of fair value (€4.2)

Significantly Below Fair Value: MEO is trading below fair value, but not by a significant amount.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for MEO?

Key metric: As MEO is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for MEO. This is calculated by dividing MEO's market cap by their current revenue.
What is MEO's PS Ratio?
PS Ratio0.05x
Sales€31.03b
Market Cap€1.47b

Price to Sales Ratio vs Peers

How does MEO's PS Ratio compare to its peers?

The above table shows the PS ratio for MEO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average0.5x
SPP SPAR Group
0.2x4.5%R27.4b
UNFI United Natural Foods
0.05x0.4%US$1.7b
4162 Almunajem Foods
1.7xn/aر.س5.7b
7451 Mitsubishi Shokuhin
0.1x3.5%JP¥207.3b
MEO Metro
0.05x2.7%€1.5b

Price-To-Sales vs Peers: MEO is good value based on its Price-To-Sales Ratio (0x) compared to the peer average (0.5x).


Price to Sales Ratio vs Industry

How does MEO's PS Ratio compare vs other companies in the European Consumer Retailing Industry?

11 CompaniesPrice / SalesEstimated GrowthMarket Cap
Industry Avg.0.3x4.5%
MEO Metro
0.05x2.7%US$1.51b
MEO 0.0xIndustry Avg. 0.3xNo. of Companies12PS00.40.81.21.62+
11 CompaniesEstimated GrowthMarket Cap
Industry Avg.0.3x13.2%
MEO Metro
0.05x105.2%US$1.51b
No more companies

Price-To-Sales vs Industry: MEO is good value based on its Price-To-Sales Ratio (0x) compared to the European Consumer Retailing industry average (0.4x).


Price to Sales Ratio vs Fair Ratio

What is MEO's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

MEO PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.05x
Fair PS Ration/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate MEO's Price-To-Sales Fair Ratio for valuation analysis.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst MEO forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€4.06
€5.14
+26.6%
33.1%€9.50€4.00n/a8
Jan ’26€4.12
€5.19
+26.0%
31.0%€9.50€4.00n/a9
Dec ’25€4.40
€5.35
+21.7%
29.8%€9.50€4.00n/a9
Nov ’25€4.40
€5.35
+21.5%
29.8%€9.50€4.00n/a9
Oct ’25€4.80
€5.86
+22.0%
27.1%€9.50€4.00n/a9
Sep ’25€4.63
€5.86
+26.7%
27.1%€9.50€4.00n/a9
Aug ’25€4.11
€5.75
+39.8%
29.2%€9.50€4.00n/a9
Jul ’25€4.39
€5.93
+35.1%
26.1%€9.50€4.00n/a10
Jun ’25€4.97
€5.93
+19.5%
26.1%€9.50€4.00n/a10
May ’25€5.06
€6.18
+22.2%
25.0%€9.50€4.00n/a10
Apr ’25€5.07
€6.25
+23.4%
24.0%€9.50€4.00n/a10
Mar ’25€5.21
€6.25
+20.0%
24.0%€9.50€4.00n/a10
Feb ’25€6.27
€6.51
+3.8%
17.7%€7.70€4.00n/a9
Jan ’25€6.31
€6.51
+3.1%
17.7%€7.70€4.00€4.129
Dec ’24€5.92
€6.72
+13.6%
15.8%€7.80€4.95€4.408
Nov ’24€6.06
€6.97
+15.0%
17.0%€8.20€5.00€4.408
Oct ’24€6.55
€7.64
+16.7%
14.8%€8.84€5.00€4.808
Sep ’24€7.27
€7.64
+5.1%
14.8%€8.84€5.00€4.638
Aug ’24€7.82
€7.71
-1.5%
14.7%€8.84€5.00€4.118
Jul ’24€7.46
€7.79
+4.5%
14.1%€8.84€5.00€4.399
Jun ’24€7.28
€7.99
+9.7%
13.7%€8.84€5.00€4.979
May ’24€7.59
€7.77
+2.3%
18.2%€9.00€5.00€5.0610
Apr ’24€7.96
€7.86
-1.2%
17.6%€9.00€5.00€5.0711
Mar ’24€8.34
€7.86
-5.7%
17.6%€9.00€5.00€5.2111
Feb ’24€9.08
€7.77
-14.4%
17.5%€9.00€5.00€6.2711
Jan ’24€9.05
€7.65
-15.4%
18.1%€9.00€5.00€6.3111
Analyst Price Target
Consensus Narrative from 8 Analysts
€5.15
Fair Value
21.2% undervalued intrinsic discount
8
Number of Analysts

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


Discover undervalued companies

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/01/10 13:39
End of Day Share Price 2025/01/10 00:00
Earnings2024/09/30
Annual Earnings2024/09/30

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Metro AG is covered by 29 analysts. 5 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Knut WollerBaader Helvea Equity Research
Volker BosseBaader Helvea Equity Research
Peter SteinerBankhaus Lampe KG