We’ve recently updated our valuation analysis.

Meridian Valuation

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

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

MRBK 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/Revenuen/a
Enterprise Value/EBITDAn/a
PEG Ratio2.1x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for MRBK vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average9.8x
MCBI Mountain Commerce Bancorp
9.7xn/aUS$178.1m
COSO CoastalSouth Bancshares
9.9xn/aUS$152.8m
BPRN Princeton Bancorp
7.9x-2.1%US$209.8m
CBAN Colony Bankcorp
11.5x15.8%US$225.6m
MRBK Meridian
7.3x3.5%US$182.2m

Price-To-Earnings vs Peers: MRBK is good value based on its Price-To-Earnings Ratio (7.3x) compared to the peer average (9.8x).


Price to Earnings Ratio vs Industry

How does MRBK's PE Ratio compare vs other companies in the US Banks Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a6.1%
n/an/an/a

Price-To-Earnings vs Industry: MRBK is good value based on its Price-To-Earnings Ratio (7.3x) compared to the US Banks industry average (9.6x)


Price to Earnings Ratio vs Fair Ratio

What is MRBK'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.

MRBK PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio7.3x
Fair PE Ratio9.2x

Price-To-Earnings vs Fair Ratio: MRBK is good value based on its Price-To-Earnings Ratio (7.3x) compared to the estimated Fair Price-To-Earnings Ratio (9.2x).


Share Price vs Fair Value

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

Below Fair Value: MRBK ($32) is trading below our estimate of fair value ($103.28)

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


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 MRBK forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$32.00
US$36.00
+12.5%
2.3%US$37.00US$35.00n/a3
Jan ’24US$30.29
US$36.00
+18.9%
2.3%US$37.00US$35.00n/a3
Dec ’23US$33.74
US$36.67
+8.7%
4.6%US$39.00US$35.00n/a3
Nov ’23US$30.70
US$36.67
+19.4%
4.6%US$39.00US$35.00n/a3
Oct ’23US$29.17
US$38.67
+32.6%
4.9%US$40.00US$36.00n/a3
Sep ’23US$30.21
US$38.67
+28.0%
4.9%US$40.00US$36.00n/a3
Aug ’23US$28.55
US$39.33
+37.8%
6.3%US$42.00US$36.00n/a3
Jul ’23US$30.05
US$40.33
+34.2%
3.1%US$42.00US$39.00n/a3
Jun ’23US$31.39
US$41.33
+31.7%
6.4%US$45.00US$39.00n/a3
May ’23US$31.40
US$42.33
+34.8%
5.9%US$45.00US$39.00n/a3
Apr ’23US$32.00
US$42.33
+32.3%
5.9%US$45.00US$39.00n/a3
Mar ’23US$34.30
US$42.33
+23.4%
5.9%US$45.00US$39.00n/a3
Feb ’23US$36.90
US$40.67
+10.2%
11.8%US$45.00US$34.00n/a3
Jan ’23US$36.77
US$38.33
+4.3%
13.0%US$45.00US$33.00US$30.293
Dec ’22US$34.53
US$38.33
+11.0%
13.0%US$45.00US$33.00US$33.743
Nov ’22US$30.05
US$33.00
+9.8%
2.5%US$34.00US$32.00US$30.703
Oct ’22US$28.82
US$33.00
+14.5%
2.5%US$34.00US$32.00US$29.173
Sep ’22US$29.32
US$33.00
+12.6%
2.5%US$34.00US$32.00US$30.213
Aug ’22US$27.00
US$33.00
+22.2%
2.5%US$34.00US$32.00US$28.553
Jul ’22US$26.25
US$30.33
+15.6%
1.6%US$31.00US$30.00US$30.053
Jun ’22US$26.74
US$30.33
+13.4%
1.6%US$31.00US$30.00US$31.393
May ’22US$26.40
US$30.33
+14.9%
1.6%US$31.00US$30.00US$31.403
Apr ’22US$25.83
US$28.33
+9.7%
4.4%US$30.00US$27.00US$32.003
Mar ’22US$24.84
US$27.00
+8.7%
3.0%US$28.00US$26.00US$34.303
Feb ’22US$20.12
US$25.67
+27.6%
1.8%US$26.00US$25.00US$36.903
Jan ’22US$20.80
US$25.67
+23.4%
1.8%US$26.00US$25.00US$36.773

Analyst Forecast: Target price is less than 20% higher than the current share price.


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