Mereo BioPharma Group plc

BST:MAH0 Stock Report

Market Cap: €547.3m

Mereo BioPharma Group Valuation

Is MAH0 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-Book vs Peers

  • Price-To-Book vs Industry

  • Price-To-Book vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of MAH0 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: Insufficient data to calculate MAH0's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate MAH0's fair value for valuation analysis.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for MAH0?

Key metric: As MAH0 barely has revenue we use its Price-To-Book Ratio for relative valuation analysis.

The above table shows the Price to Book ratio for MAH0. This is calculated by dividing MAH0's market cap by their current book value.
What is MAH0's PB Ratio?
PB Ratio7.9x
BookUS$72.54m
Market CapUS$570.03m

Price to Book Ratio vs Peers

How does MAH0's PB Ratio compare to its peers?

The above table shows the PB ratio for MAH0 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PBEstimated GrowthMarket Cap
Peer Average12.6x
VSC 4SC
44xn/a€49.1m
FYB Formycon
1.4x31.5%€827.2m
BIO3 Biotest
2x29.3%€1.4b
HPHA Heidelberg Pharma
2.9x-33.0%€103.9m
MAH0 Mereo BioPharma Group
7.9x-0.1%€570.0m

Price-To-Book vs Peers: MAH0 is good value based on its Price-To-Book Ratio (7.9x) compared to the peer average (12.8x).

Price to Book Ratio vs Industry

How does MAH0's PB Ratio compare vs other companies in the DE Biotechs Industry?

3 CompaniesPrice / BookEstimated GrowthMarket Cap
V9Z Aceragen
0.1xn/aUS$3.12m
V9Z Aceragen
0.1xn/aUS$2.18m
O7P NeuBase Therapeutics
0.1xn/aUS$1.39m
No more companies available in this PB range
MAH0 7.9xIndustry Avg. 2.4xNo. of Companies3PB00.61.21.82.43+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Book vs Industry: MAH0 is expensive based on its Price-To-Book Ratio (7.9x) compared to the European Biotechs industry average (2.4x).

Price to Book Ratio vs Fair Ratio

What is MAH0's PB Ratio compared to its Fair PB Ratio? This is the expected PB Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

MAH0 PB Ratio vs Fair Ratio.
Fair Ratio
Current PB Ratio7.9x
Fair PB Ration/a

Price-To-Book vs Fair Ratio: Insufficient data to calculate MAH0's Price-To-Book 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 MAH0 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Currentn/a
€6.78
0%
10.4%€7.55€5.68n/a5
Nov ’25€3.75
€6.64
+77.1%
10.2%€7.49€5.62n/a5
Oct ’25€3.59
€6.64
+85.0%
10.2%€7.49€5.62n/a5
Sep ’25€4.15
€6.57
+58.3%
10.4%€7.30€5.47n/a5
Aug ’25€3.55
€6.68
+88.1%
10.2%€7.44€5.58n/a5
Jul ’25€3.24
€6.68
+106.1%
10.2%€7.44€5.58n/a5
Jun ’25n/a
€5.78
0%
6.5%€6.44€5.56n/a4
May ’25n/a
€5.82
0%
7.5%€6.58€5.56n/a4
Apr ’25€3.06
€5.32
+73.9%
19.0%€6.48€3.70n/a4
Mar ’25€3.50
€4.62
+32.1%
24.9%€6.52€3.68n/a4
Feb ’25€3.50
€3.92
+11.9%
9.9%€4.59€3.68n/a4
Jan ’25€2.20
€4.04
+83.5%
10.9%€4.80€3.70n/a4
Dec ’24n/a
€4.00
0%
10.4%€4.72€3.75n/a4
Nov ’24€1.59
€4.00
+151.6%
10.4%€4.72€3.75€3.754
Oct ’24n/a
€4.02
0%
10.5%€4.61€3.69€3.593
Sep ’24€1.24
€4.02
+224.0%
10.5%€4.61€3.64€4.153
Aug ’24n/a
€4.00
0%
11.7%€4.66€3.60€3.553
Jul ’24n/a
€4.06
0%
10.8%€4.68€3.73€3.243
Jun ’24€0.85
€4.02
+372.9%
11.5%€4.67€3.65n/a3
May ’24€1.15
€3.95
+243.2%
10.8%€4.55€3.62n/a3
Apr ’24€0.67
€3.92
+490.0%
9.8%€4.59€3.69€3.064
Mar ’24n/a
€4.04
0%
12.9%€4.94€3.71€3.504
Feb ’24n/a
€4.13
0%
11.5%€4.93€3.70€3.504
Jan ’24€0.50
€4.15
+730.8%
11.3%€4.95€3.75€2.204
Dec ’23n/a
€4.25
0%
10.6%€5.04€3.94n/a4
Nov ’23n/a
€5.31
0%
31.1%€8.09€4.05€1.594

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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