Mercia Asset Management PLC

AIM:MERC Stock Report

Market Cap: UK£126.8m

Mercia Asset Management Valuation

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

Valuation Score

1/6

Valuation Score 1/6

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

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

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

Key Valuation Metric

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

Key metric: As MERC is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for MERC. This is calculated by dividing MERC's market cap by their current earnings.
What is MERC's PE Ratio?
PE Ratio36.7x
EarningsUK£3.46m
Market CapUK£126.82m

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for MERC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average12.9x
REC Record
13x5.39%UK£110.5m
CLIG City of London Investment Group
12.1xn/aUK£181.0m
FEN Frenkel Topping Group
14.7x9.28%UK£59.6m
VLE Volvere
11.9xn/aUK£51.3m
MERC Mercia Asset Management
36.7x4.98%UK£126.8m

Price-To-Earnings vs Peers: MERC is expensive based on its Price-To-Earnings Ratio (36.7x) compared to the peer average (12.9x).

Price to Earnings Ratio vs Industry

How does MERC's PE Ratio compare vs other companies in the GB Capital Markets Industry?

9 CompaniesPrice / EarningsEstimated GrowthMarket Cap
CGEO Georgia Capital
1.6xn/aUS$1.02b
BPM B.P. Marsh & Partners
2.3xn/aUS$317.27m
SIHL Symphony International Holdings
2.8xn/aUS$198.16m
JIM Jarvis Securities
2.5xn/aUS$10.00m
MERC 36.7xIndustry Avg. 13.4xNo. of Companies12PE01224364860+
9 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: MERC is expensive based on its Price-To-Earnings Ratio (36.7x) compared to the UK Capital Markets industry average (13.6x).

Price to Earnings Ratio vs Fair Ratio

What is MERC'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.

MERC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio36.7x
Fair PE Ratio12.1x

Price-To-Earnings vs Fair Ratio: MERC is expensive based on its Price-To-Earnings Ratio (36.7x) compared to the estimated Fair Price-To-Earnings Ratio (12.1x).

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 MERC forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£0.29
UK£0.63
+112.43%
7.63%UK£0.67UK£0.56n/a3
Nov ’26UK£0.30
UK£0.63
+108.89%
7.63%UK£0.67UK£0.56n/a3
Oct ’26UK£0.33
UK£0.63
+89.90%
7.63%UK£0.67UK£0.56n/a3
Sep ’26UK£0.32
UK£0.63
+95.83%
7.63%UK£0.67UK£0.56n/a3
Aug ’26UK£0.33
UK£0.63
+88.19%
7.63%UK£0.67UK£0.56n/a3
Jul ’26UK£0.34
UK£0.63
+85.41%
7.63%UK£0.67UK£0.56n/a3
Jun ’26UK£0.27
UK£0.60
+121.81%
9.79%UK£0.65UK£0.52n/a3
May ’26UK£0.29
UK£0.60
+106.62%
9.79%UK£0.65UK£0.52n/a3
Apr ’26UK£0.24
UK£0.60
+146.26%
9.79%UK£0.65UK£0.52n/a3
Mar ’26UK£0.27
UK£0.60
+127.67%
9.79%UK£0.65UK£0.52n/a3
Feb ’26UK£0.27
UK£0.60
+127.67%
9.79%UK£0.65UK£0.52n/a3
Jan ’26UK£0.28
UK£0.60
+111.69%
9.79%UK£0.65UK£0.52n/a3
Dec ’25UK£0.31
UK£0.60
+94.62%
9.79%UK£0.65UK£0.52n/a3
Nov ’25UK£0.30
UK£0.60
+97.92%
11.06%UK£0.66UK£0.51UK£0.303
Oct ’25UK£0.32
UK£0.60
+88.65%
11.06%UK£0.66UK£0.51UK£0.333
Sep ’25UK£0.36
UK£0.60
+68.62%
11.06%UK£0.66UK£0.51UK£0.323
Aug ’25UK£0.35
UK£0.60
+73.47%
11.06%UK£0.66UK£0.51UK£0.333
Jul ’25UK£0.31
UK£0.65
+109.84%
1.61%UK£0.66UK£0.64UK£0.342
Jun ’25UK£0.32
UK£0.65
+105.85%
1.61%UK£0.66UK£0.64UK£0.272
May ’25UK£0.34
UK£0.65
+91.32%
1.61%UK£0.66UK£0.64UK£0.292
Apr ’25UK£0.33
UK£0.65
+96.53%
1.61%UK£0.66UK£0.64UK£0.242
Mar ’25UK£0.29
UK£0.65
+119.56%
2.40%UK£0.66UK£0.63UK£0.272
Feb ’25UK£0.30
UK£0.65
+111.64%
2.40%UK£0.66UK£0.63UK£0.272
Jan ’25UK£0.30
UK£0.65
+113.74%
2.40%UK£0.66UK£0.63UK£0.282
Dec ’24UK£0.29
UK£0.65
+118.81%
2.40%UK£0.66UK£0.63UK£0.312
Nov ’24UK£0.22
UK£0.64
+188.86%
4.01%UK£0.66UK£0.61UK£0.302
UK£0.63
Fair Value
52.9% undervalued intrinsic discount
3
Number of Analysts

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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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/11/14 05:52
End of Day Share Price 2025/11/14 00:00
Earnings2025/03/31
Annual Earnings2025/03/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Mercia Asset Management PLC is covered by 3 analysts. 3 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
null nullCanaccord Genuity
Victoria PeaseEdison Investment Research
Paul BryantEquity Development Limited