Mears Group plc

LSE:MER Stock Report

Market Cap: UK£361.2m

Mears Group Valuation

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

Valuation Score

3/6

Valuation Score 3/6

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

Below Fair Value: MER (£3.88) is trading above our estimate of fair value (£3.57)

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

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

MER 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/Revenue0.5x
Enterprise Value/EBITDA6.7x
PEG Ratio-0.6x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for MER vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average77.5x
RST Restore
101.6x48.7%UK£386.1m
FRAN Franchise Brands
106.3x40.7%UK£322.9m
JSG Johnson Service Group
20.7x20.6%UK£643.0m
SMS Smart Metering Systems
81.4x15.2%UK£1.3b
MER Mears Group
8.8x-14.7%UK£361.2m

Price-To-Earnings vs Peers: MER is good value based on its Price-To-Earnings Ratio (8.8x) compared to the peer average (77.5x).

Price to Earnings Ratio vs Industry

How does MER's PE Ratio compare vs other companies in the European Commercial Services Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a17.1%
 n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a17.1%
 n/an/an/a
No more companies

Price-To-Earnings vs Industry: MER is good value based on its Price-To-Earnings Ratio (8.8x) compared to the European Commercial Services industry average (14.4x).

Price to Earnings Ratio vs Fair Ratio

What is MER'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.

MER PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio8.8x
Fair PE Ratio11.4x

Price-To-Earnings vs Fair Ratio: MER is good value based on its Price-To-Earnings Ratio (8.8x) compared to the estimated Fair Price-To-Earnings Ratio (11.4x).

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 MER forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£3.88
UK£4.50
+16.0%
10.4%UK£4.99UK£3.80n/a4
Sep ’25UK£3.81
UK£4.50
+18.0%
10.4%UK£4.99UK£3.80n/a4
Aug ’25UK£3.58
UK£4.50
+25.6%
10.4%UK£4.99UK£3.80n/a4
Jul ’25UK£3.80
UK£4.50
+18.3%
10.4%UK£4.99UK£3.80n/a4
Jun ’25UK£3.94
UK£4.35
+10.3%
10.2%UK£4.99UK£3.75n/a4
May ’25UK£3.63
UK£4.34
+19.4%
10.3%UK£4.99UK£3.75n/a4
Apr ’25UK£3.69
UK£4.08
+10.4%
11.5%UK£4.65UK£3.50n/a4
Mar ’25UK£3.56
UK£4.08
+14.6%
11.5%UK£4.65UK£3.50n/a4
Feb ’25UK£3.41
UK£4.08
+19.5%
11.5%UK£4.65UK£3.50n/a4
Jan ’25UK£3.10
UK£3.23
+4.0%
10.7%UK£3.82UK£3.00n/a4
Dec ’24UK£2.78
UK£3.23
+16.0%
10.7%UK£3.82UK£3.00n/a4
Nov ’24UK£2.56
UK£3.23
+26.2%
10.7%UK£3.82UK£3.00n/a4
Oct ’24UK£2.76
UK£3.23
+16.8%
10.7%UK£3.82UK£3.00n/a4
Sep ’24UK£2.76
UK£3.23
+16.8%
10.7%UK£3.82UK£3.00UK£3.814
Aug ’24UK£2.75
UK£3.03
+10.2%
9.5%UK£3.47UK£2.75UK£3.584
Jul ’24UK£2.91
UK£3.03
+4.0%
9.5%UK£3.47UK£2.75UK£3.804
Jun ’24UK£2.42
UK£2.86
+18.4%
4.7%UK£3.08UK£2.75UK£3.944
May ’24UK£2.22
UK£2.74
+23.8%
8.9%UK£3.08UK£2.39UK£3.634
Apr ’24UK£1.99
UK£2.74
+38.2%
8.9%UK£3.08UK£2.39UK£3.694
Mar ’24UK£2.18
UK£2.74
+25.8%
8.9%UK£3.08UK£2.39UK£3.564
Feb ’24UK£2.04
UK£2.74
+34.4%
8.9%UK£3.08UK£2.39UK£3.414
Jan ’24UK£2.08
UK£2.69
+29.5%
8.9%UK£3.08UK£2.39UK£3.105
Dec ’23UK£1.90
UK£2.68
+41.3%
9.7%UK£3.08UK£2.31UK£2.785
Nov ’23UK£1.90
UK£2.66
+40.0%
10.8%UK£3.08UK£2.31UK£2.564
Oct ’23UK£1.93
UK£2.66
+37.8%
10.8%UK£3.08UK£2.31UK£2.764
Sep ’23UK£2.02
UK£2.66
+31.7%
10.8%UK£3.08UK£2.31UK£2.764

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

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