Mereo BioPharma Group plc

NasdaqCM:MREO Stock Report

Market Cap: US$640.5m

Mereo BioPharma Group Valuation

Is MREO 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-Book vs Peers

  • Price-To-Book vs Industry

  • Price-To-Book vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

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

Below Fair Value: Insufficient data to calculate MREO's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate MREO's fair value for valuation analysis.


Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

MREO 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/Revenue559.3x
Enterprise Value/EBITDA-15x
PEG Ration/a

Price to Book Ratio vs Peers

How does MREO's PB Ratio compare to its peers?

The above table shows the PB ratio for MREO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PBEstimated GrowthMarket Cap
Peer Average6.2x
ALT Altimmune
2.9x20.2%US$447.0m
FREQ Frequency Therapeutics
14.9x-4.7%US$547.3m
SRRK Scholar Rock Holding
4.4x33.3%US$596.2m
CATX Perspective Therapeutics
2.6x1.2%US$851.6m
MREO Mereo BioPharma Group
8.4x-11.7%US$640.5m

Price-To-Book vs Peers: MREO is expensive based on its Price-To-Book Ratio (8.4x) compared to the peer average (3.3x).


Price to Earnings Ratio vs Industry

How does MREO's PE Ratio compare vs other companies in the US Biotechs Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a28.6%
n/an/an/a
No. of CompaniesPB048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a28.6%
n/an/an/a
No more companies

Price-To-Book vs Industry: MREO is expensive based on its Price-To-Book Ratio (8.4x) compared to the US Biotechs industry average (1.7x).


Price to Book Ratio vs Fair Ratio

What is MREO's PB Ratio compared to its Fair PB Ratio? This is the expected PB Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

MREO PB Ratio vs Fair Ratio.
Fair Ratio
Current PB Ratio8.4x
Fair PB Ration/a

Price-To-Book vs Fair Ratio: Insufficient data to calculate MREO's Price-To-Book 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 MREO forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$4.29
US$7.37
+71.8%
9.8%US$8.23US$6.17n/a5
Sep ’25US$4.69
US$7.23
+54.2%
10.4%US$8.03US$6.02n/a5
Aug ’25US$3.98
US$7.14
+79.4%
10.2%US$7.95US$5.96n/a5
Jul ’25US$3.63
US$7.14
+96.7%
10.2%US$7.95US$5.96n/a5
Jun ’25US$3.45
US$6.28
+82.1%
6.5%US$6.99US$6.04n/a4
May ’25US$3.15
US$6.22
+97.4%
7.5%US$7.02US$5.93n/a4
Apr ’25US$3.41
US$5.74
+68.3%
19.0%US$6.99US$3.99n/a4
Mar ’25US$3.97
US$4.97
+25.2%
24.9%US$7.01US$3.96n/a4
Feb ’25US$3.98
US$4.25
+6.7%
9.9%US$4.98US$3.99n/a4
Jan ’25US$2.31
US$4.36
+88.6%
10.9%US$5.18US$4.00n/a4
Dec ’24US$2.22
US$4.24
+90.9%
10.4%US$5.00US$3.97n/a4
Nov ’24US$2.00
US$4.24
+111.9%
10.4%US$5.00US$3.97n/a4
Oct ’24US$1.29
US$4.28
+231.5%
10.5%US$4.91US$3.93US$4.173
Sep ’24US$1.44
US$4.36
+203.1%
10.5%US$5.01US$3.96US$4.693
Aug ’24US$1.35
US$4.45
+230.0%
11.7%US$5.18US$4.01US$3.983
Jul ’24US$1.32
US$4.34
+229.1%
10.8%US$5.01US$3.99US$3.633
Jun ’24US$1.01
US$4.31
+326.9%
11.5%US$5.01US$3.92US$3.453
May ’24US$1.23
US$4.36
+254.1%
10.8%US$5.02US$4.00US$3.153
Apr ’24US$0.71
US$4.28
+505.3%
9.8%US$5.01US$4.02US$3.414
Mar ’24US$0.87
US$4.30
+394.7%
12.9%US$5.27US$3.95US$3.974
Feb ’24US$0.97
US$4.48
+361.7%
11.5%US$5.35US$4.01US$3.984
Jan ’24US$0.75
US$4.43
+491.1%
11.3%US$5.29US$4.00US$2.314
Dec ’23US$0.79
US$4.34
+448.5%
10.6%US$5.13US$4.02US$2.224
Nov ’23US$0.96
US$5.25
+446.7%
31.1%US$7.99US$4.00US$2.004
Oct ’23US$0.86
US$6.05
+602.0%
27.0%US$7.89US$3.99US$1.294

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


Discover undervalued companies