Melrose Industries PLC
LSE:MRO
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Intrinsic Value
The intrinsic value of
Melrose Industries PLC (MRO) under the Base Case is 510.83 GBX per share.
Compared with the current market price of 484.2 GBX, the stock appears
Undervalued by 5% .
The intrinsic value is calculated using the DCF method. The model assumes revenue returns to growth: about 9% a year over the next five years, after falling about 13% a year over the last five years. If revenue grew at its five-year pace of -13%, the estimate would be about GBX 179. The value of the years after 2031 is tied to revenue, so margins count only until then.
Do our valuations actually work? See backtest results .
Cheap or expensive for this stock?
This block shows whether today’s valuation is cheap or expensive compared with the stock’s own history, and what happened after similar valuations in the past.
We compare the gap between the stock’s price and our estimated value over time.
- Undervalued can still be historically expensive. The stock may trade below our estimated value, but usually offer an even bigger discount.
- Overvalued can still be historically cheap. The stock may trade above our estimated value, but usually carry an even higher premium.
Market expectations can differ from our model, which may not fully capture everything affecting the price. That is why some stocks regularly trade above our estimated value and others below it.
The scale and chart show how today’s valuation compares with the past. The cards summarize past returns and waiting times until the stock stopped being cheap or expensive. This can happen because the price changed, our estimated value changed, or both.
Only completed periods are included. These are past results, not forecasts. The usual historical range does not necessarily mean fair value.
Fundamental Analysis
What Melrose Industries Does
Melrose Industries is an industrial company focused on aerospace. It makes and supplies aircraft parts and systems, including structural components, engine and propulsion parts, and related aftermarket services. Its main customers are aircraft makers, engine manufacturers, airlines, and maintenance providers that need high-spec parts for new aircraft and for repairs.
- Headquarters
- United Kingdom UK
- Employees
- 13 844
- IPO date
- Nov 19, 2015
Melrose Industries has no economic moat
Melrose Industries PLC lacks an economic moat, leaving it vulnerable to competitive pressures and market challenges.
Read the full moat analysis
Earnings Waterfall
Melrose Industries PLC
What is the Intrinsic Value of one MRO stock?
The intrinsic value for
Melrose Industries PLC (MRO) under the Base Case is 510.83 GBX.
Is MRO stock undervalued or overvalued?
Compared with the current market price of 484.2 GBX, the stock appears Undervalued by 5% .