MCY Relative Valuation
MCY's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, MCY is overvalued; if below, it's undervalued.
Historical Valuation
Mercury General Corp (MCY) is now in the Undervalued zone, suggesting that its current forward PS ratio of 0.85 is considered Undervalued compared with the five-year average of 18.37. The fair price of Mercury General Corp (MCY) is between 93.17 to 122.46 according to relative valuation methord. Compared to the current price of 88.24 USD , Mercury General Corp is Undervalued By 5.29%.
Relative Value
Fair Zone
93.17-122.46
Current Price：88.24
5.29%
Undervalued
10.66
PE
1Y
3Y
5Y
0.00
EV/EBITDA
Mercury General Corp. (MCY) has a current EV/EBITDA of 0.00. The 5-year average EV/EBITDA is 0.00. The thresholds are as follows: Strongly Undervalued below 0.00, Undervalued between 0.00 and 0.00, Fairly Valued between 0.00 and 0.00, Overvalued between 0.00 and 0.00, and Strongly Overvalued above 0.00. The current Forward EV/EBITDA of 0.00 falls within the Strongly Undervalued range.
0.00
EV/EBIT
Mercury General Corp. (MCY) has a current EV/EBIT of 0.00. The 5-year average EV/EBIT is 0.00. The thresholds are as follows: Strongly Undervalued below 0.00, Undervalued between 0.00 and 0.00, Fairly Valued between 0.00 and 0.00, Overvalued between 0.00 and 0.00, and Strongly Overvalued above 0.00. The current Forward EV/EBIT of 0.00 falls within the Strongly Undervalued range.
0.85
PS
Mercury General Corp. (MCY) has a current PS of 0.85. The 5-year average PS is 0.61. The thresholds are as follows: Strongly Undervalued below 0.26, Undervalued between 0.26 and 0.43, Fairly Valued between 0.79 and 0.43, Overvalued between 0.79 and 0.96, and Strongly Overvalued above 0.96. The current Forward PS of 0.85 falls within the Overvalued range.
0.00
P/OCF
Mercury General Corp. (MCY) has a current P/OCF of 0.00. The 5-year average P/OCF is 0.00. The thresholds are as follows: Strongly Undervalued below 0.00, Undervalued between 0.00 and 0.00, Fairly Valued between 0.00 and 0.00, Overvalued between 0.00 and 0.00, and Strongly Overvalued above 0.00. The current Forward P/OCF of 0.00 falls within the Strongly Undervalued range.
0.00
P/FCF
Mercury General Corp. (MCY) has a current P/FCF of 0.00. The 5-year average P/FCF is 0.00. The thresholds are as follows: Strongly Undervalued below 0.00, Undervalued between 0.00 and 0.00, Fairly Valued between 0.00 and 0.00, Overvalued between 0.00 and 0.00, and Strongly Overvalued above 0.00. The current Forward P/FCF of 0.00 falls within the Strongly Undervalued range.
Mercury General Corp (MCY) has a current Price-to-Book (P/B) ratio of 2.28. Compared to its 3-year average P/B ratio of 1.68 , the current P/B ratio is approximately 35.38% higher. Relative to its 5-year average P/B ratio of 1.58, the current P/B ratio is about 44.52% higher. Mercury General Corp (MCY) has a Forward Free Cash Flow (FCF) yield of approximately 19.49%. Compared to its 3-year average FCF yield of 20.07%, the current FCF yield is approximately -2.86% lower. Relative to its 5-year average FCF yield of 18.94% , the current FCF yield is about 2.92% lower.
2.28
P/B
Median3y
1.68
Median5y
1.58
19.49
FCF Yield
Median3y
20.07
Median5y
18.94
Competitors Valuation Multiple
The average P/S ratio for MCY's competitors is 2.39, providing a benchmark for relative valuation. Mercury General Corp Corp (MCY) exhibits a P/S ratio of 0.85, which is -64.48% above the industry average. Given its robust revenue growth of 3.56%, this premium appears unsustainable.
Performance Decomposition
1Y
3Y
5Y
Market capitalization of MCY increased by 77.05% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 7.41 to 11.57.
The secondary factor is the Margin Expansion, contributed 17.31%to the performance.
Overall, the performance of MCY in the past 1 year is driven by P/E Change. Which is more unsustainable.
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Frequently Asked Questions
Is Mercury General Corp (MCY) currently overvalued or undervalued?
Mercury General Corp (MCY) is now in the Undervalued zone, suggesting that its current forward PS ratio of 0.85 is considered Undervalued compared with the five-year average of 18.37. The fair price of Mercury General Corp (MCY) is between 93.17 to 122.46 according to relative valuation methord. Compared to the current price of 88.24 USD , Mercury General Corp is Undervalued By 5.29% .
What is Mercury General Corp (MCY) fair value?
MCY's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average , adjusted by weights. The fair price of Mercury General Corp (MCY) is between 93.17 to 122.46 according to relative valuation methord.
How does MCY's valuation metrics compare to the industry average?
The average P/S ratio for MCY's competitors is 2.39, providing a benchmark for relative valuation. Mercury General Corp Corp (MCY) exhibits a P/S ratio of 0.85, which is -64.48% above the industry average. Given its robust revenue growth of 3.56%, this premium appears unsustainable.
What is the current P/B ratio for Mercury General Corp (MCY) as of Jan 08 2026?
As of Jan 08 2026, Mercury General Corp (MCY) has a P/B ratio of 2.28. This indicates that the market values MCY at 2.28 times its book value.
What is the current FCF Yield for Mercury General Corp (MCY) as of Jan 08 2026?
As of Jan 08 2026, Mercury General Corp (MCY) has a FCF Yield of 19.49%. This means that for every dollar of Mercury General Corp’s market capitalization, the company generates 19.49 cents in free cash flow.
What is the current Forward P/E ratio for Mercury General Corp (MCY) as of Jan 08 2026?
As of Jan 08 2026, Mercury General Corp (MCY) has a Forward P/E ratio of 10.66. This means the market is willing to pay $10.66 for every dollar of Mercury General Corp’s expected earnings over the next 12 months.
What is the current Forward P/S ratio for Mercury General Corp (MCY) as of Jan 08 2026?
As of Jan 08 2026, Mercury General Corp (MCY) has a Forward P/S ratio of 0.85. This means the market is valuing MCY at $0.85 for every dollar of expected revenue over the next 12 months.