MERLIN Properties SOCIMI Valuation

Q: What is the Fair Price of MRL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

MRL (€9.4) is trading above our estimate of [[fair value]] (€6.96)

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

Below Fair Value: MRL (€9.4) is trading above our estimate of fair value (€6.96)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for MRL. This is calculated by dividing MRL's market cap by their current earnings.
What is MRL's PE Ratio?
PE Ratio	45.1x
Earnings	€129.34m
Market Cap	€5.83b

MRL key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	18.8x
Enterprise Value/EBITDA	24.7x
PEG Ratio	1.4x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for MRL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	31.5x
LAND Land Securities Group	42.4x	25.9%	UK£4.5b
LMP LondonMetric Property	19.6x	15.3%	UK£4.0b
SGP Stockland	41x	17.1%	AU$12.5b
BLND British Land	23.1x	20.1%	UK£3.9b
MRL MERLIN Properties SOCIMI	45.1x	33.2%	€5.8b

Price-To-Earnings vs Peers: MRL is expensive based on its Price-To-Earnings Ratio (45.1x) compared to the peer average (31.5x).

Price to Earnings Ratio vs Industry

How does MRL's PE Ratio compare vs other companies in the European REITs Industry?

2 Companies	Price / Earnings	Estimated Growth	Market Cap

2 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: MRL is expensive based on its Price-To-Earnings Ratio (45.1x) compared to the European REITs industry average (21.9x).

Price to Earnings Ratio vs Fair Ratio

What is MRL'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.

MRL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	45.1x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate MRL'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?

The above table shows the analyst MRL forecast and predictions for the stock price in 12 month’s time.
Date	Share Price	Average 1Y Price Target	Dispersion	High	Low	1Y Actual price	Analysts
Current	€9.40	€12.94 +37.7%	14.1%	€15.60	€7.52	n/a	18
Nov ’25	€10.28	€12.95 +26.0%	14.1%	€15.60	€7.52	n/a	18
Oct ’25	€11.33	€12.54 +10.7%	13.7%	€15.00	€7.52	n/a	19
Sep ’25	€11.20	€12.33 +10.0%	11.2%	€14.60	€9.70	n/a	18
Aug ’25	€10.70	€12.17 +13.8%	11.0%	€14.60	€9.70	n/a	17
Jul ’25	€10.40	€12.09 +16.2%	9.2%	€14.60	€9.70	n/a	18
Jun ’25	€10.87	€11.74 +8.0%	9.7%	€14.30	€9.70	n/a	17
May ’25	€10.50	€11.29 +7.6%	9.0%	€13.10	€9.70	n/a	19
Apr ’25	€10.00	€10.77 +7.7%	12.9%	€12.70	€6.40	n/a	20
Mar ’25	€8.80	€10.73 +21.9%	12.8%	€12.70	€6.40	n/a	20
Feb ’25	€9.35	€10.66 +14.0%	12.5%	€12.50	€6.40	n/a	20
Jan ’25	€10.11	€10.17 +0.6%	12.7%	€12.50	€6.40	n/a	20
Dec ’24	€9.30	€10.11 +8.7%	13.0%	€12.50	€6.40	n/a	20
Nov ’24	€7.90	€9.96 +26.1%	14.7%	€12.50	€6.40	€10.28	17
Oct ’24	€8.00	€10.09 +26.2%	15.6%	€13.00	€6.40	€11.33	17
Sep ’24	€8.28	€10.24 +23.6%	13.4%	€13.00	€7.90	€11.20	17
Aug ’24	€8.55	€10.24 +19.7%	13.4%	€13.00	€7.90	€10.70	17
Jul ’24	€7.85	€10.20 +30.0%	13.0%	€13.00	€7.90	€10.40	17
Jun ’24	€7.65	€10.41 +36.0%	14.2%	€13.33	€7.90	€10.87	17
May ’24	n/a	€10.56 0%	13.5%	€13.33	€7.90	€10.50	17
Apr ’24	€8.05	€10.59 +31.5%	13.5%	€13.33	€7.90	€10.00	17
Mar ’24	€8.77	€10.60 +20.9%	13.5%	€13.33	€7.90	€8.80	17
Feb ’24	€8.90	€10.72 +20.5%	14.3%	€13.33	€7.90	€9.35	17
Jan ’24	€8.90	€10.74 +20.7%	14.3%	€13.33	€7.80	€10.11	17
Dec ’23	€8.90	€10.82 +21.5%	13.9%	€13.33	€7.90	€9.30	17
Nov ’23	€8.55	€11.10 +29.9%	13.1%	€13.33	€7.90	€7.90	18

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.