Mercantile Investments and Finance PLC

COSE:MERC.N0000 Stock Report

Market Cap: LK₨7.8b

Mercantile Investments and Finance Valuation

Is MERC.N0000 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.N0000 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: MERC.N0000 (LKR2600) is trading above our estimate of fair value (LKR316.22)

Significantly Below Fair Value: MERC.N0000 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for MERC.N0000?

Key metric: As MERC.N0000 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for MERC.N0000. This is calculated by dividing MERC.N0000's market cap by their current earnings.
What is MERC.N0000's PE Ratio?
PE Ratio9.9x
EarningsLK₨789.84m
Market CapLK₨7.82b

Price to Earnings Ratio vs Peers

How does MERC.N0000's PE Ratio compare to its peers?

The above table shows the PE ratio for MERC.N0000 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average7x
VFIN.N0000 Vallibel Finance
4.5xn/aLK₨10.5b
HNBF.N0000 HNB Finance
15.8xn/aLK₨9.8b
CDB.N0000 Citizens Development Business Finance
4.5xn/aLK₨15.1b
ALLI.N0000 Alliance Finance
3.1xn/aLK₨4.2b
MERC.N0000 Mercantile Investments and Finance
9.9xn/aLK₨7.8b

Price-To-Earnings vs Peers: MERC.N0000 is expensive based on its Price-To-Earnings Ratio (9.9x) compared to the peer average (7x).

Price to Earnings Ratio vs Industry

How does MERC.N0000's PE Ratio compare vs other companies in the LK Consumer Finance Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No more companies available in this PE range
MERC.N0000 9.9xIndustry Avg. 14.3xNo. of Companies7PE0612182430+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: MERC.N0000 is good value based on its Price-To-Earnings Ratio (9.9x) compared to the Asian Consumer Finance industry average (14.3x).

Price to Earnings Ratio vs Fair Ratio

What is MERC.N0000'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.N0000 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio9.9x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate MERC.N0000's Price-To-Earnings Fair Ratio for valuation analysis.

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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