MERLIN Properties SOCIMI, S.A.

DB:MEQA Stock Report

Market Cap: €4.8b

MERLIN Properties SOCIMI Valuation

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

Below Fair Value: MEQA (€10.31) is trading above our estimate of fair value (€9.04)

Significantly Below Fair Value: MEQA is trading above our estimate of fair value.


Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

MEQA 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/Revenue17.7x
Enterprise Value/EBITDA22.6x
PEG Ration/a

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for MEQA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average11.8x
FVI Fair Value REIT-AG
2.3xn/a€56.1m
GIB GSW Immobilien
13.4xn/a€5.0b
LMP LondonMetric Property
27.1x40.2%UK£4.0b
COV Covivio
4.4x3.0%€4.5b
MEQA MERLIN Properties SOCIMI
9.6x5.6%€4.8b

Price-To-Sales vs Peers: MEQA is good value based on its Price-To-Sales Ratio (9.6x) compared to the peer average (11.3x).


Price to Earnings Ratio vs Industry

How does MEQA's PE Ratio compare vs other companies in the European REITs Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a91.4%
n/an/an/a
No. of CompaniesPS048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a91.4%
n/an/an/a
No more companies

Price-To-Sales vs Industry: MEQA is expensive based on its Price-To-Sales Ratio (9.6x) compared to the European REITs industry average (8.1x).


Price to Sales Ratio vs Fair Ratio

What is MEQA'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.

MEQA PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio9.6x
Fair PS Ratio16.7x

Price-To-Sales vs Fair Ratio: MEQA is good value based on its Price-To-Sales Ratio (9.6x) compared to the estimated Fair Price-To-Sales Ratio (16.7x).


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 MEQA forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€10.31
€11.29
+9.5%
9.0%€13.10€9.70n/a19
Apr ’25€9.72
€10.77
+10.8%
12.9%€12.70€6.40n/a20
Mar ’25€8.87
€10.73
+21.0%
12.8%€12.70€6.40n/a20
Feb ’25€9.37
€10.66
+13.8%
12.5%€12.50€6.40n/a20
Jan ’25€10.07
€10.17
+1.0%
12.7%€12.50€6.40n/a20
Dec ’24€9.22
€10.11
+9.6%
13.0%€12.50€6.40n/a20
Nov ’24€7.84
€9.96
+27.2%
14.7%€12.50€6.40n/a17
Oct ’24€7.96
€10.09
+26.9%
15.6%€13.00€6.40n/a17
Sep ’24€8.13
€10.24
+25.9%
13.4%€13.00€7.90n/a17
Aug ’24€8.41
€10.24
+21.8%
13.4%€13.00€7.90n/a17
Jul ’24€7.82
€10.20
+30.5%
13.0%€13.00€7.90n/a17
Jun ’24€7.70
€10.41
+35.2%
14.2%€13.33€7.90n/a17
May ’24€8.03
€10.56
+31.5%
13.5%€13.33€7.90n/a17
Apr ’24€7.89
€10.59
+34.2%
13.5%€13.33€7.90€9.7217
Mar ’24€8.74
€10.60
+21.3%
13.5%€13.33€7.90€8.8717
Feb ’24€8.87
€10.72
+20.9%
14.3%€13.33€7.90€9.3717
Jan ’24€8.81
€10.74
+21.9%
14.3%€13.33€7.80€10.0717
Dec ’23€8.85
€10.82
+22.3%
13.9%€13.33€7.90€9.2217
Nov ’23€8.64
€11.10
+28.5%
13.1%€13.33€7.90€7.8418
Oct ’23€7.72
€11.35
+47.0%
13.4%€13.50€7.90€7.9617
Sep ’23€8.84
€11.62
+31.5%
12.4%€13.50€7.90€8.1316
Aug ’23€10.23
€11.57
+13.1%
14.2%€13.50€6.80€8.4116
Jul ’23€9.05
€11.76
+30.0%
13.7%€13.50€6.80€7.8215
Jun ’23€10.48
€11.79
+12.5%
13.5%€13.50€6.80€7.7016
May ’23€10.35
€11.65
+12.6%
14.6%€13.50€6.80€8.0316
Apr ’23€10.56
€11.13
+5.4%
14.1%€13.33€6.80€7.8917

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


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