Metro Valuation

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

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

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

Below Fair Value: MRU (CA$72.72) is trading below our estimate of fair value (CA$107.63)

Significantly Below Fair Value: MRU is trading below fair value by more than 20%.


Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

MRU key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1x
Enterprise Value/EBITDA11.7x
PEG Ratio6.6x

Price to Earnings Ratio vs Peers

How does MRU's PE Ratio compare to its peers?

The above table shows the PE ratio for MRU vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average16.9x
WN George Weston
16.4x-1.8%CA$24.9b
EMP.A Empire
10.6xn/aCA$8.1b
L Loblaw Companies
22.1x-0.2%CA$46.5b
ATD Alimentation Couche-Tard
18.6x6.9%CA$74.3b
MRU Metro
16.2x2.5%CA$16.5b

Price-To-Earnings vs Peers: MRU is good value based on its Price-To-Earnings Ratio (16.2x) compared to the peer average (16.9x).


Price to Earnings Ratio vs Industry

How does MRU's PE Ratio compare vs other companies in the North American Consumer Retailing Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a3.1%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a3.1%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: MRU is good value based on its Price-To-Earnings Ratio (16.2x) compared to the North American Consumer Retailing industry average (19.5x).


Price to Earnings Ratio vs Fair Ratio

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

MRU PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio16.2x
Fair PE Ratio18x

Price-To-Earnings vs Fair Ratio: MRU is good value based on its Price-To-Earnings Ratio (16.2x) compared to the estimated Fair Price-To-Earnings Ratio (18x).


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 MRU forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCA$72.72
CA$76.05
+4.6%
5.0%CA$82.00CA$69.00n/a10
Mar ’25CA$73.45
CA$76.05
+3.5%
5.0%CA$82.00CA$69.00n/a10
Feb ’25CA$71.11
CA$76.05
+6.9%
5.0%CA$82.00CA$69.00n/a10
Jan ’25CA$68.59
CA$76.10
+10.9%
5.4%CA$83.00CA$69.00n/a10
Dec ’24CA$68.32
CA$76.10
+11.4%
5.4%CA$83.00CA$69.00n/a10
Nov ’24CA$71.47
CA$78.40
+9.7%
4.9%CA$83.00CA$69.00n/a10
Oct ’24CA$70.54
CA$78.60
+11.4%
4.3%CA$83.00CA$71.00n/a10
Sep ’24CA$70.50
CA$78.30
+11.1%
5.3%CA$83.00CA$68.00n/a10
Aug ’24CA$70.56
CA$78.20
+10.8%
5.2%CA$82.00CA$68.00n/a10
Jul ’24CA$74.82
CA$78.10
+4.4%
5.1%CA$82.00CA$68.00n/a10
Jun ’24CA$71.51
CA$78.10
+9.2%
5.1%CA$82.00CA$68.00n/a10
May ’24CA$78.16
CA$78.10
-0.08%
5.1%CA$82.00CA$68.00n/a10
Apr ’24CA$74.34
CA$77.00
+3.6%
5.1%CA$80.00CA$66.00n/a11
Mar ’24CA$70.40
CA$77.00
+9.4%
5.1%CA$80.00CA$66.00CA$73.4511
Feb ’24CA$70.42
CA$77.00
+9.3%
5.1%CA$80.00CA$66.00CA$71.1111
Jan ’24CA$74.97
CA$76.18
+1.6%
6.6%CA$82.00CA$63.00CA$68.5911
Dec ’23CA$77.61
CA$75.82
-2.3%
6.7%CA$82.00CA$63.00CA$68.3211
Nov ’23CA$71.70
CA$73.09
+1.9%
5.1%CA$78.00CA$63.00CA$71.4711
Oct ’23CA$69.17
CA$73.27
+5.9%
5.3%CA$78.00CA$63.00CA$70.5411
Sep ’23CA$69.76
CA$73.27
+5.0%
5.3%CA$78.00CA$63.00CA$70.5011
Aug ’23CA$70.91
CA$72.91
+2.8%
5.5%CA$78.00CA$62.00CA$70.5611
Jul ’23CA$69.09
CA$72.82
+5.4%
5.5%CA$78.00CA$62.00CA$74.8211
Jun ’23CA$69.04
CA$72.82
+5.5%
5.5%CA$78.00CA$62.00CA$71.5111
May ’23CA$70.61
CA$72.82
+3.1%
5.5%CA$78.00CA$62.00CA$78.1611
Apr ’23CA$71.57
CA$69.73
-2.6%
5.9%CA$78.00CA$62.00CA$74.3411
Mar ’23CA$66.03
CA$69.00
+4.5%
4.7%CA$74.00CA$62.00CA$70.4011

Analyst Forecast: Target price is less than 20% higher than the current share price.


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