Metro Inc.

TSX:MRU Stock Report

Market Cap: CA$19.2b

Metro Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • 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$87.08) is trading below our estimate of fair value (CA$92.32)

Significantly Below Fair Value: MRU 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 MRU?

Key metric: As MRU is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for MRU. This is calculated by dividing MRU's market cap by their current earnings.
What is MRU's PE Ratio?
PE Ratio20.8x
EarningsCA$931.00m
Market CapCA$19.21b

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 Average26.2x
WN George Weston
46.8x6.8%CA$28.2b
EMP.A Empire
14.5xn/aCA$9.6b
L Loblaw Companies
24x-0.9%CA$53.1b
ATD Alimentation Couche-Tard
19.5x9.9%CA$73.6b
MRU Metro
20.8x3.4%CA$19.2b

Price-To-Earnings vs Peers: MRU is good value based on its Price-To-Earnings Ratio (20.8x) compared to the peer average (26.2x).

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
MRU 20.8xIndustry Avg. 20.6xNo. of Companies7PE01224364860+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: MRU is expensive based on its Price-To-Earnings Ratio (20.8x) compared to the North American Consumer Retailing industry average (20.6x).

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 Ratio20.8x
Fair PE Ratio19.8x

Price-To-Earnings vs Fair Ratio: MRU is expensive based on its Price-To-Earnings Ratio (20.8x) compared to the estimated Fair Price-To-Earnings Ratio (19.8x).

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$87.08
CA$87.60
+0.6%
8.1%CA$97.00CA$70.00n/a10
Nov ’25CA$82.91
CA$85.70
+3.4%
7.3%CA$95.00CA$70.00n/a10
Oct ’25CA$85.58
CA$84.67
-1.1%
6.8%CA$92.00CA$70.00n/a9
Sep ’25CA$84.66
CA$84.67
+0.008%
6.8%CA$92.00CA$70.00n/a9
Aug ’25CA$81.74
CA$78.56
-3.9%
8.1%CA$92.00CA$70.00n/a9
Jul ’25CA$75.79
CA$76.89
+1.4%
5.6%CA$82.00CA$69.00n/a9
Jun ’25CA$72.63
CA$76.89
+5.9%
5.6%CA$82.00CA$69.00n/a9
May ’25CA$70.26
CA$76.60
+9.0%
5.4%CA$82.00CA$69.00n/a10
Apr ’25CA$72.61
CA$76.05
+4.7%
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$69.00CA$82.9110
Oct ’24CA$70.54
CA$78.60
+11.4%
4.3%CA$83.00CA$71.00CA$85.5810
Sep ’24CA$70.50
CA$78.30
+11.1%
5.3%CA$83.00CA$68.00CA$84.6610
Aug ’24CA$70.56
CA$78.20
+10.8%
5.2%CA$82.00CA$68.00CA$81.7410
Jul ’24CA$74.82
CA$78.10
+4.4%
5.1%CA$82.00CA$68.00CA$75.7910
Jun ’24CA$71.51
CA$78.10
+9.2%
5.1%CA$82.00CA$68.00CA$72.6310
May ’24CA$78.16
CA$78.10
-0.08%
5.1%CA$82.00CA$68.00CA$70.2610
Apr ’24CA$74.34
CA$77.00
+3.6%
5.1%CA$80.00CA$66.00CA$72.6111
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

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

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