MERC PE Ratio & Valuation,Is MERC Overvalued

MERC Relative Valuation

MERC'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, MERC is overvalued; if below, it's undervalued.

Historical Valuation

Mercer International Inc (MERC) is now in the Undervalued zone, suggesting that its current forward PS ratio of 0.07 is considered Undervalued compared with the five-year average of 91.48. The fair price of Mercer International Inc (MERC) is between 9.63 to 15.70 according to relative valuation methord. Compared to the current price of 1.96 USD , Mercer International Inc is Undervalued By 79.64%.

Relative Value

Fair Zone

9.63-15.70

Current Price：1.96

79.64%

Undervalued

-0.89

19.15

EV/EBITDA

Mercer International Inc. (MERC) has a current EV/EBITDA of 19.15. The 5-year average EV/EBITDA is 10.95. The thresholds are as follows: Strongly Undervalued below -20.71, Undervalued between -20.71 and -4.88, Fairly Valued between 26.78 and -4.88, Overvalued between 26.78 and 42.60, and Strongly Overvalued above 42.60. The current Forward EV/EBITDA of 19.15 falls within the Historic Trend Line -Fairly Valued range.

-17.62

EV/EBIT

Mercer International Inc. (MERC) has a current EV/EBIT of -17.62. The 5-year average EV/EBIT is -28.07. The thresholds are as follows: Strongly Undervalued below -285.00, Undervalued between -285.00 and -156.53, Fairly Valued between 100.40 and -156.53, Overvalued between 100.40 and 228.86, and Strongly Overvalued above 228.86. The current Forward EV/EBIT of -17.62 falls within the Historic Trend Line -Fairly Valued range.

0.07

Mercer International Inc. (MERC) has a current PS of 0.07. The 5-year average PS is 0.32. The thresholds are as follows: Strongly Undervalued below 0.07, Undervalued between 0.07 and 0.19, Fairly Valued between 0.45 and 0.19, Overvalued between 0.45 and 0.58, and Strongly Overvalued above 0.58. The current Forward PS of 0.07 falls within the Undervalued range.

-5.24

P/OCF

Mercer International Inc. (MERC) has a current P/OCF of -5.24. The 5-year average P/OCF is 2.13. The thresholds are as follows: Strongly Undervalued below -11.02, Undervalued between -11.02 and -4.44, Fairly Valued between 8.71 and -4.44, Overvalued between 8.71 and 15.28, and Strongly Overvalued above 15.28. The current Forward P/OCF of -5.24 falls within the Undervalued range.

-1.21

P/FCF

Mercer International Inc. (MERC) has a current P/FCF of -1.21. The 5-year average P/FCF is 11.92. The thresholds are as follows: Strongly Undervalued below -44.70, Undervalued between -44.70 and -16.39, Fairly Valued between 40.23 and -16.39, Overvalued between 40.23 and 68.54, and Strongly Overvalued above 68.54. The current Forward P/FCF of -1.21 falls within the Historic Trend Line -Fairly Valued range.

Mercer International Inc (MERC) has a current Price-to-Book (P/B) ratio of 0.37. Compared to its 3-year average P/B ratio of 0.82 , the current P/B ratio is approximately -55.19% higher. Relative to its 5-year average P/B ratio of 1.02, the current P/B ratio is about -64.28% higher. Mercer International Inc (MERC) has a Forward Free Cash Flow (FCF) yield of approximately -46.96%. Compared to its 3-year average FCF yield of -13.41%, the current FCF yield is approximately 250.23% lower. Relative to its 5-year average FCF yield of -5.48% , the current FCF yield is about 756.51% lower.

0.37

P/B

Median3y

0.82

Median5y

1.02

-46.96

FCF Yield

Median3y

-13.41

Median5y

-5.48

Competitors Valuation Multiple

The average P/S ratio for MERC's competitors is 0.74, providing a benchmark for relative valuation. Mercer International Inc Corp (MERC) exhibits a P/S ratio of 0.07, which is -91.06% above the industry average. Given its robust revenue growth of -8.78%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of MERC decreased by 69.15% over the past 1 year. The primary factor behind the change was an decrease in Margin Expansion from -3.50 to -17.63.

The secondary factor is the Revenue Growth, contributed -8.78%to the performance.

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

-8.78%

502.14M → 458.07M

Revenue Growth

403.71%

-3.50 → -17.63

Margin Expansion

-464.08%

0.21 → -0.76

P/E Change

-69.15%

6.35 → 1.96

Mkt Cap Growth

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Frequently Asked Questions

Is Mercer International Inc (MERC) currently overvalued or undervalued?

What is Mercer International Inc (MERC) fair value?

MERC'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 Mercer International Inc (MERC) is between 9.63 to 15.70 according to relative valuation methord.

How does MERC's valuation metrics compare to the industry average?

What is the current P/B ratio for Mercer International Inc (MERC) as of Dec 15 2025?

As of Dec 15 2025, Mercer International Inc (MERC) has a P/B ratio of 0.37. This indicates that the market values MERC at 0.37 times its book value.

What is the current FCF Yield for Mercer International Inc (MERC) as of Dec 15 2025?

As of Dec 15 2025, Mercer International Inc (MERC) has a FCF Yield of -46.96%. This means that for every dollar of Mercer International Inc’s market capitalization, the company generates -46.96 cents in free cash flow.

What is the current Forward P/E ratio for Mercer International Inc (MERC) as of Dec 15 2025?

As of Dec 15 2025, Mercer International Inc (MERC) has a Forward P/E ratio of -0.89. This means the market is willing to pay $-0.89 for every dollar of Mercer International Inc’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for Mercer International Inc (MERC) as of Dec 15 2025?

As of Dec 15 2025, Mercer International Inc (MERC) has a Forward P/S ratio of 0.07. This means the market is valuing MERC at $0.07 for every dollar of expected revenue over the next 12 months.

MERC Valuation