Merit Group Valuation

Q: What is the Fair Price of HXP0 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

HXP0 (€0.33) is trading below our estimate of [[fair value]] (€0.43)

Is HXP0 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

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 HXP0 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: HXP0 (€0.33) is trading below our estimate of fair value (€0.43)

Significantly Below Fair Value: HXP0 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for HXP0?

Key metric: As HXP0 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for HXP0. This is calculated by dividing HXP0's market cap by their current revenue.
What is HXP0's PS Ratio?
PS Ratio	0.4x
Sales	UK£19.29m
Market Cap	UK£7.91m

HXP0 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/Revenue	0.6x
Enterprise Value/EBITDA	6.4x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does HXP0's PS Ratio compare to its peers?

The above table shows the PS ratio for HXP0 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PS	Estimated Growth	Market Cap
Peer Average	1.5x
MF8 Cash.Medien	2.2x	n/a	€4.4m
G6P Going Public Media	2.5x	n/a	€1.5m
SBV Schwabenverlag	0.1x	n/a	€1.4m
BST Bastei Lübbe	1.1x	2.9%	€129.4m
HXP0 Merit Group	0.4x	1.8%	€7.9m

Price-To-Sales vs Peers: HXP0 is good value based on its Price-To-Sales Ratio (0.4x) compared to the peer average (1.5x).

Price to Sales Ratio vs Industry

How does HXP0's PS Ratio compare vs other companies in the DE Media Industry?

4 Companies	Price / Sales	Estimated Growth	Market Cap
TC1 Tele Columbus	0.2x	2.9%	US$96.32m
SBV Schwabenverlag	0.1x	n/a	US$1.46m
53Y Bonhill Group	0.02x	n/a	US$398.20k
69R Aventura Group	0.09x	n/a	US$242.86k

No more companies available in this PS range

4 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: HXP0 is good value based on its Price-To-Sales Ratio (0.4x) compared to the European Media industry average (0.6x).

Price to Sales Ratio vs Fair Ratio

What is HXP0'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.

HXP0 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.4x
Fair PS Ratio	0.4x

Price-To-Sales vs Fair Ratio: HXP0 is expensive based on its Price-To-Sales Ratio (0.4x) compared to the estimated Fair Price-To-Sales Ratio (0.4x).

Analyst Price Targets

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

Analyst Forecast: Insufficient data to show price forecast.

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