Manila Electric Company

PSE:MER Stock Report

Market Cap: ₱563.5b

Manila Electric Valuation

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

Valuation Score

4/6

Valuation Score 4/6

  • 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 (₱494) is trading below our estimate of fair value (₱654.31)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for MER. This is calculated by dividing MER's market cap by their current earnings.
What is MER's PE Ratio?
PE Ratio12.8x
Earnings₱43.38b
Market Cap₱563.55b

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 Average15.7x
SGP Synergy Grid & Development Phils
5.3xn/a₱47.1b
FPH First Philippine Holdings
2xn/a₱27.8b
CREC Citicore Renewable Energy
47.3x69.9%₱29.0b
AP Aboitiz Power
8.1x7.4%₱270.6b
MER Manila Electric
12.8x6.2%₱563.5b

Price-To-Earnings vs Peers: MER is good value based on its Price-To-Earnings Ratio (12.8x) compared to the peer average (15.7x).

Price to Earnings Ratio vs Industry

How does MER's PE Ratio compare vs other companies in the Asian Electric Utilities Industry?

4 CompaniesPrice / EarningsEstimated GrowthMarket Cap
MER 12.8xIndustry Avg. 16.3xNo. of Companies15PE01224364860+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: MER is good value based on its Price-To-Earnings Ratio (12.8x) compared to the Asian Electric Utilities industry average (16.3x).

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 Ratio12.8x
Fair PE Ratio9.9x

Price-To-Earnings vs Fair Ratio: MER is expensive based on its Price-To-Earnings Ratio (12.8x) compared to the estimated Fair Price-To-Earnings Ratio (9.9x).

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
Current₱494.00
₱488.89
-1.0%
13.5%₱575.00₱380.00n/a9
Nov ’25₱490.00
₱477.77
-2.5%
13.8%₱570.00₱380.00n/a9
Oct ’25₱443.00
₱458.10
+3.4%
12.5%₱570.00₱380.00n/a9
Sep ’25₱425.20
₱426.77
+0.4%
8.8%₱513.00₱380.00n/a9
Aug ’25₱390.00
₱415.46
+6.5%
6.0%₱447.00₱380.00n/a10
Jul ’25₱369.80
₱407.46
+10.2%
5.2%₱445.70₱380.00n/a10
Jun ’25₱367.20
₱406.46
+10.7%
5.8%₱445.70₱380.00n/a10
May ’25₱369.00
₱403.86
+9.4%
6.1%₱445.70₱380.00n/a10
Apr ’25₱366.00
₱402.16
+9.9%
6.4%₱445.70₱380.00n/a10
Mar ’25₱379.80
₱400.85
+5.5%
6.2%₱445.70₱380.00n/a10
Feb ’25₱357.00
₱399.46
+11.9%
6.4%₱436.75₱356.00n/a10
Jan ’25₱399.00
₱394.82
-1.0%
6.3%₱436.75₱356.00n/a8
Dec ’24₱367.00
₱387.51
+5.6%
5.5%₱436.75₱356.00n/a9
Nov ’24₱355.00
₱384.77
+8.4%
6.4%₱436.75₱350.00₱490.0010
Oct ’24₱368.00
₱384.77
+4.6%
6.4%₱436.75₱350.00₱443.0010
Sep ’24₱345.00
₱382.97
+11.0%
6.6%₱436.75₱350.00₱425.2010
Aug ’24₱347.00
₱377.85
+8.9%
6.8%₱436.75₱350.00₱390.0010
Jul ’24₱335.00
₱368.82
+10.1%
6.6%₱411.00₱325.00₱369.809
Jun ’24₱322.60
₱359.23
+11.4%
8.9%₱411.00₱307.00₱367.2010
May ’24₱339.00
₱361.73
+6.7%
9.7%₱411.00₱307.00₱369.0010
Apr ’24₱311.00
₱353.37
+13.6%
9.9%₱411.00₱307.00₱366.009
Mar ’24₱313.00
₱352.70
+12.7%
9.8%₱411.00₱307.00₱379.809
Feb ’24₱287.80
₱358.17
+24.5%
9.1%₱411.00₱307.00₱357.008
Jan ’24₱298.80
₱358.17
+19.9%
9.1%₱411.00₱307.00₱399.008
Dec ’23₱287.20
₱364.79
+27.0%
7.3%₱411.00₱322.00₱367.008
Nov ’23₱301.40
₱360.68
+19.7%
6.8%₱411.00₱322.00₱355.008

Analyst Forecast: Target price is lower than the current share price.

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