Meridian Energy Ltd
NZX:MEL

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Meridian Energy Ltd
NZX:MEL
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Price: 5.68 NZD 2.34% Market Closed
Market Cap: NZ$15B

EV/GP

10.6
Current
23%
Cheaper
vs 3-y average of 13.8

Enterprise Value to Gross Profit (EV/GP) ratio compares a company`s total enterprise value to its gross profit. It shows how much investors are paying for each dollar of the company`s gross profit, including both equity and debt.

EV/GP
10.6
=
Enterprise Value
NZ$16.2B
/
Gross Profit
NZ$1.6B

Enterprise Value to Gross Profit (EV/GP) ratio compares a company`s total enterprise value to its gross profit. It shows how much investors are paying for each dollar of the company`s gross profit, including both equity and debt.

EV/GP
10.6
=
Enterprise Value
NZ$16.2B
/
Gross Profit
NZ$1.6B

Valuation Scenarios

Meridian Energy Ltd is trading below its 3-year average

If EV/GP returns to its 3-Year Average (13.8), the stock would be worth NZ$7.38 (30% upside from current price).

Statistics
Positive Scenarios
2/4
Maximum Downside
-46%
Maximum Upside
+39%
Average Downside
1%
Scenario EV/GP Value Implied Price Upside/Downside
Current Multiple 10.6 NZ$5.68
0%
3-Year Average 13.8 NZ$7.38
+30%
5-Year Average 14.8 NZ$7.89
+39%
Industry Average 7.7 NZ$4.1
-28%
Country Average 5.7 NZ$3.06
-46%

Forward EV/GP
Today’s price vs future gross profit

Not enough data available to calculate forward EV/GP

Peer Comparison

All Multiples
EV/GP
P/E
All Countries
Close

Market Distribution

In line with most companies in New Zealand
Percentile
69th
Based on 191 companies
69th percentile
10.6
Low
0.8 — 3.9
Typical Range
3.9 — 10.8
High
10.8 —
Distribution Statistics
New Zealand
Min 0.8
30th Percentile 3.9
Median 5.7
70th Percentile 10.8
Max 47

Meridian Energy Ltd
Glance View

Market Cap
15B NZD
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.

MEL Intrinsic Value
4.56 NZD
Overvaluation 20%
Intrinsic Value
Price NZ$5.68
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