Meridian Energy Ltd
ASX:MEZ

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Meridian Energy Ltd
ASX:MEZ
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Price: 4.7 AUD 2.62% Market Closed
Market Cap: AU$12.1B

P/FCFE

26.1
Current
23%
Cheaper
vs 3-y average of 34.1

Price to Free Cash Flow to Equity (P/FCFE) ratio compares a company`s market value to the free cash flow available to its shareholders. It`s similar to the P/OCF ratio but more precise, since it accounts for capital expenditures deducted from operating cash flow.

P/FCFE
26.1
=
Market Cap
AU$14.5B
/
Free Cash Flow to Equity
NZ$578m

Price to Free Cash Flow to Equity (P/FCFE) ratio compares a company`s market value to the free cash flow available to its shareholders. It`s similar to the P/OCF ratio but more precise, since it accounts for capital expenditures deducted from operating cash flow.

P/FCFE
26.1
=
Market Cap
AU$14.5B
/
Free Cash Flow to Equity
NZ$578m

Valuation Scenarios

Meridian Energy Ltd is trading below its 3-year average

If P/FCFE returns to its 3-Year Average (34.1), the stock would be worth AU$6.13 (30% upside from current price).

Statistics
Positive Scenarios
2/4
Maximum Downside
-17%
Maximum Upside
+30%
Average Upside
2%
Scenario P/FCFE Value Implied Price Upside/Downside
Current Multiple 26.1 AU$4.7
0%
3-Year Average 34.1 AU$6.13
+30%
5-Year Average 27.8 AU$5
+6%
Industry Average 23.4 AU$4.22
-10%
Country Average 21.5 AU$3.88
-17%

Forward P/FCFE
Today’s price vs future free cash flow to equity

Not enough data available to calculate forward P/FCFE

Peer Comparison

All Multiples
P/FCFE
P/E
All Countries
Close

Market Distribution

In line with most companies in New Zealand
Percentile
49th
Based on 172 companies
49th percentile
21.5
Low
2.3 — 12.5
Typical Range
12.5 — 34.7
High
34.7 —
Distribution Statistics
New Zealand
Min 2.3
30th Percentile 12.5
Median 21.5
70th Percentile 34.7
Max 457.5

Meridian Energy Ltd
Glance View

Market Cap
12.1B AUD
Industry
Utilities

Meridian Energy Ltd, born from the windswept landscapes and roaring rivers of New Zealand, stands as a testament to the power of renewable energy. Rooted in the country's abundant natural resources, it operates principally through its hydroelectric and wind power stations. The strategic placement of these facilities allows Meridian to harness water flows and wind currents, transforming them into clean, reliable energy. The company's core operations are orchestrated around its significant hydro assets along the Waitaki River and its growing portfolio of wind farms, ensuring a continuous power supply to meet New Zealand's energy demand. This setup not only embodies environmental stewardship but also capitalizes on the nation's unique geographic advantages. In the marketplace, Meridian Energy crafts a profitable equation by selling this sustainably generated electricity to residential, commercial, and industrial customers. Its business model thrives on the vertical integration of energy generation, from production to retail distribution. This cycle of clean energy provisioning ensures a stable revenue stream, particularly as global trends pivot towards sustainable energy solutions. Further enriched by government incentives and an increasing consumer preference for green power, Meridian's operations are not just a nod to ecological responsibility but a robust engine driving financial performance. By uniting environmental consciousness with shrewd business tactics, Meridian Energy illuminates both homes and the path towards a sustainable future.

MEZ Intrinsic Value
4.87 AUD
Undervaluation 4%
Intrinsic Value
Price AU$4.7
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