MCY Valuation

Mercury General Corp

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82.090

+2.58(3.245%)1D

Overview
Forecast
Valuation
Earnings

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 0.73 is considered Undervalued compared with the five-year average of 18.51. The fair price of Mercury General Corp (MCY) is between 88.25 to 118.70 according to relative valuation methord. Compared to the current price of 81.67 USD , Mercury General Corp is Undervalued By 7.46%.

Relative Value

Fair Zone

88.25-118.70

Current Price：81.67

7.46%

Undervalued

11.21

Trailing

Forward

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.

0.73

Mercury General Corp. (MCY) has a current PS of 0.73. The 5-year average PS is 0.60. The thresholds are as follows: Strongly Undervalued below 0.26, Undervalued between 0.26 and 0.43, Fairly Valued between 0.77 and 0.43, Overvalued between 0.77 and 0.95, and Strongly Overvalued above 0.95. The current Forward PS of 0.73 falls within the Historic Trend Line -Fairly Valued 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 2.24. Compared to its 3-year average P/B ratio of 1.59 , the current P/B ratio is approximately 40.85% higher. Relative to its 5-year average P/B ratio of 1.53, the current P/B ratio is about 46.53% higher. Mercury General Corp (MCY) has a Forward Free Cash Flow (FCF) yield of approximately 18.56%. Compared to its 3-year average FCF yield of 19.80%, the current FCF yield is approximately -6.26% lower. Relative to its 5-year average FCF yield of 18.96% , the current FCF yield is about -2.10% lower.

2.31

P/B

Median3y

1.59

Median5y

1.53

18.56

FCF Yield

Median3y

19.80

Median5y

18.96

Competitors Valuation Multiple

The average P/S ratio for MCY's competitors is , providing a benchmark for relative valuation. Mercury General Corp Corp (MCY) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 13.25%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Selective Insurance Group Inc

Performance Decomposition

Market capitalization of MCY increased by 31.64% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 4.79 to 11.26.

The secondary factor is the Revenue Growth, contributed 13.25%to the performance.

Overall, the performance of MCY in the past 1 year is driven by Margin Expansion. Which is more sustainable.

13.25%

1.30B → 1.48B

Revenue Growth

135.07%

4.79 → 11.26

Margin Expansion

-116.68%

-69.91 → 11.66

P/E Change

31.64%