Merit Group Valuation

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

Valuation Score

5/6

Valuation Score 5/6

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

Below Fair Value: MRIT (£0.33) is trading below our estimate of fair value (£0.41)

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


Key Valuation Metric

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

Key metric: As MRIT is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for MRIT. This is calculated by dividing MRIT's market cap by their current revenue.
What is MRIT's PS Ratio?
PS Ratio0.4x
SalesUK£19.29m
Market CapUK£7.91m

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for MRIT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average4.6x
CAU Centaur Media
1x4.0%UK£36.6m
RCH Reach
0.5x-2.5%UK£279.6m
IQO Inteliqo
15.2xn/aUK£6.8m
TMO Time Out Group
1.8x6.6%UK£187.5m
MRIT Merit Group
0.4x1.8%UK£7.9m

Price-To-Sales vs Peers: MRIT is good value based on its Price-To-Sales Ratio (0.4x) compared to the peer average (4.6x).


Price to Sales Ratio vs Industry

How does MRIT's PS Ratio compare vs other companies in the GB Media Industry?

3 CompaniesPrice / SalesEstimated GrowthMarket Cap
TMG Mission Group
0.09x-41.9%US$21.06m
JWNG Jaywing
0.08xn/aUS$2.05m
BONH Bonhill Group
0.04xn/aUS$681.51k
No more companies available in this PS range
MRIT 0.4xIndustry Avg. 0.7xNo. of Companies10PS00.81.62.43.24+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: MRIT is good value based on its Price-To-Sales Ratio (0.4x) compared to the UK Media industry average (0.7x).


Price to Sales Ratio vs Fair Ratio

What is MRIT'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.

MRIT PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.4x
Fair PS Ratio0.4x

Price-To-Sales vs Fair Ratio: MRIT is good value based on its Price-To-Sales Ratio (0.4x) compared to the estimated Fair Price-To-Sales Ratio (0.4x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


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