Mersen Valuation

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

Valuation Score

6/6

Valuation Score 6/6

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

Below Fair Value: MRN (€36.5) is trading below our estimate of fair value (€77.95)

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


Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

MRN 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/EBITDA6.2x
PEG Ratio0.9x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for MRN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average22.5x
PERR Gérard Perrier Industrie
20.5x4.4%€370.5m
NEX Nexans
19.1x11.9%€4.2b
ALOKW Groupe OKwind Société anonyme
28.4x43.0%€166.9m
LR Legrand
22x4.5%€25.3b
MRN Mersen
10.8x12.4%€882.9m

Price-To-Earnings vs Peers: MRN is good value based on its Price-To-Earnings Ratio (10.8x) compared to the peer average (22.5x).


Price to Earnings Ratio vs Industry

How does MRN's PE Ratio compare vs other companies in the European Electrical Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a9.2%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a9.2%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: MRN is good value based on its Price-To-Earnings Ratio (10.8x) compared to the European Electrical industry average (18.5x).


Price to Earnings Ratio vs Fair Ratio

What is MRN'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.

MRN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio10.8x
Fair PE Ratio14x

Price-To-Earnings vs Fair Ratio: MRN is good value based on its Price-To-Earnings Ratio (10.8x) compared to the estimated Fair Price-To-Earnings Ratio (14x).


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 MRN forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€36.50
€50.03
+37.1%
7.1%€55.00€45.00n/a6
Mar ’25€35.15
€49.52
+40.9%
6.3%€54.00€45.00n/a6
Feb ’25€33.70
€50.35
+49.4%
4.8%€54.00€46.10n/a6
Jan ’25€35.20
€49.68
+41.1%
7.4%€54.00€42.10n/a6
Dec ’24€33.50
€50.52
+50.8%
9.1%€57.00€42.10n/a6
Nov ’24€31.00
€50.52
+63.0%
9.1%€57.00€42.10n/a6
Oct ’24€37.80
€51.10
+35.2%
5.0%€55.00€47.60n/a6
Sep ’24€41.75
€51.10
+22.4%
5.0%€55.00€47.60n/a6
Aug ’24€42.30
€50.43
+19.2%
6.4%€55.00€46.00n/a6
Jul ’24€41.50
€49.18
+18.5%
9.5%€57.00€45.00n/a6
Jun ’24€35.95
€50.00
+39.1%
9.4%€57.00€45.00n/a5
May ’24€36.60
€50.33
+37.5%
5.2%€54.00€48.00n/a3
Apr ’24€41.05
€48.92
+19.2%
5.7%€54.00€45.60n/a5
Mar ’24€45.40
€47.88
+5.5%
4.8%€50.00€44.50€35.154
Feb ’24€41.00
€47.88
+16.8%
4.8%€50.00€44.50€33.704
Jan ’24€37.75
€42.70
+13.1%
5.2%€46.00€40.00€35.205
Dec ’23€37.00
€42.70
+15.4%
5.2%€46.00€40.00€33.505
Nov ’23€32.70
€42.80
+30.9%
5.4%€46.00€40.00€31.005
Oct ’23€28.55
€41.12
+44.0%
6.3%€45.00€37.60€37.805
Sep ’23€28.70
€41.40
+44.3%
6.8%€45.00€37.60€41.754
Aug ’23€33.70
€41.40
+22.8%
6.8%€45.00€37.60€42.304
Jul ’23€28.10
€40.38
+43.7%
7.5%€44.50€36.00€41.504
Jun ’23€32.60
€40.38
+23.8%
7.5%€44.50€36.00€35.954
May ’23€31.65
€40.38
+27.6%
10.1%€46.00€34.50€36.604
Apr ’23€34.20
€42.00
+22.8%
6.9%€46.00€38.00€41.054
Mar ’23€31.45
€40.00
+27.2%
8.8%€43.00€34.00€45.404

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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