Mercia Asset Management PLC

AIM:MERC Stock Report

Market Cap: UK£133.7m

Mercia Asset Management Valuation

Is MERC 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 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 unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for MERC. This is calculated by dividing MERC's market cap by their current revenue.
What is MERC's PS Ratio?
PS Ratio4x
SalesUK£33.30m
Market CapUK£133.70m

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for MERC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average7.4x
REC Record
2.6x0.6%UK£120.4m
MGCI M&G Credit Income Investment Trust
8.5xn/aUK£140.7m
CLIG City of London Investment Group
3.5x11.2%UK£190.5m
0A9X KR1
14.9xn/aUK£129.5m
MERC Mercia Asset Management
4x6.7%UK£133.7m

Price-To-Sales vs Peers: MERC is good value based on its Price-To-Sales Ratio (4x) compared to the peer average (7.4x).

Price to Sales Ratio vs Industry

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

18 CompaniesPrice / SalesEstimated GrowthMarket Cap
STJ St. James's Place
0.2x-98.6%US$5.99b
QLT Quilter
0.3x-83.2%US$2.50b
KWG Kingswood Holdings
0.9xn/aUS$99.95m
RIV River and Mercantile Group
0.6x-49.0%US$50.18m
MERC 4.0xIndustry Avg. 3.2xNo. of Companies18PS03.67.210.814.418+
18 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: MERC is expensive based on its Price-To-Sales Ratio (4x) compared to the UK Capital Markets industry average (3.2x).

Price to Sales Ratio vs Fair Ratio

What is MERC'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.

MERC PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio4x
Fair PS Ratio2.6x

Price-To-Sales vs Fair Ratio: MERC is expensive based on its Price-To-Sales Ratio (4x) compared to the estimated Fair Price-To-Sales Ratio (2.6x).

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£0.31
UK£0.60
+94.6%
9.8%UK£0.65UK£0.52n/a3
Nov ’25UK£0.30
UK£0.60
+97.9%
11.1%UK£0.66UK£0.51n/a3
Oct ’25UK£0.32
UK£0.60
+88.6%
11.1%UK£0.66UK£0.51n/a3
Sep ’25UK£0.36
UK£0.60
+68.6%
11.1%UK£0.66UK£0.51n/a3
Aug ’25UK£0.35
UK£0.60
+73.5%
11.1%UK£0.66UK£0.51n/a3
Jul ’25UK£0.31
UK£0.65
+109.8%
1.6%UK£0.66UK£0.64n/a2
Jun ’25UK£0.32
UK£0.65
+105.9%
1.6%UK£0.66UK£0.64n/a2
May ’25UK£0.34
UK£0.65
+91.3%
1.6%UK£0.66UK£0.64n/a2
Apr ’25UK£0.33
UK£0.65
+96.5%
1.6%UK£0.66UK£0.64n/a2
Mar ’25UK£0.29
UK£0.65
+119.6%
2.4%UK£0.66UK£0.63n/a2
Feb ’25UK£0.30
UK£0.65
+111.6%
2.4%UK£0.66UK£0.63n/a2
Jan ’25UK£0.30
UK£0.65
+113.7%
2.4%UK£0.66UK£0.63n/a2
Dec ’24UK£0.29
UK£0.65
+118.8%
2.4%UK£0.66UK£0.63n/a2
Nov ’24UK£0.22
UK£0.64
+188.9%
4.0%UK£0.66UK£0.61UK£0.302
Oct ’24UK£0.24
UK£0.64
+161.5%
4.0%UK£0.66UK£0.61UK£0.322
Sep ’24UK£0.27
UK£0.64
+138.0%
4.0%UK£0.66UK£0.61UK£0.362
Aug ’24UK£0.27
UK£0.64
+139.8%
4.0%UK£0.66UK£0.61UK£0.352
Jan ’24UK£0.32
UK£0.64
+100.2%
3.2%UK£0.66UK£0.62UK£0.302
Dec ’23UK£0.29
UK£0.62
+109.7%
7.4%UK£0.66UK£0.57UK£0.292
Nov ’23UK£0.28
UK£0.62
+123.8%
7.4%UK£0.66UK£0.57UK£0.222

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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