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MERC Valuation

Mercer International Inc
$
4.360
+0.4(10.101%)1D
  • Overview
  • Forecast
  • Valuation
  • Earnings

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 0.12 is considered Undervalued compared with the five-year average of 92.18. The fair price of Mercer International Inc (MERC) is between 12.83 to 18.82 according to relative valuation methord. Compared to the current price of 4.27 USD , Mercer International Inc is Undervalued By 66.72%.
Relative Value
Fair Zone
12.83-18.82
Current Price:4.27
66.72%
Undervalued
-2.44
PE
1Y
3Y
5Y
Trailing
Forward
11.14
EV/EBITDA
Mercer International Inc. (MERC) has a current EV/EBITDA of 11.14. The 5-year average EV/EBITDA is 10.14. The thresholds are as follows: Strongly Undervalued below -21.36, Undervalued between -21.36 and -5.61, Fairly Valued between 25.89 and -5.61, Overvalued between 25.89 and 41.65, and Strongly Overvalued above 41.65. The current Forward EV/EBITDA of 11.14 falls within the Historic Trend Line -Fairly Valued range.
-84.94
EV/EBIT
Mercer International Inc. (MERC) has a current EV/EBIT of -84.94. The 5-year average EV/EBIT is -20.88. The thresholds are as follows: Strongly Undervalued below -276.11, Undervalued between -276.11 and -148.50, Fairly Valued between 106.73 and -148.50, Overvalued between 106.73 and 234.35, and Strongly Overvalued above 234.35. The current Forward EV/EBIT of -84.94 falls within the Historic Trend Line -Fairly Valued range.
0.13
PS
Mercer International Inc. (MERC) has a current PS of 0.13. The 5-year average PS is 0.34. The thresholds are as follows: Strongly Undervalued below 0.12, Undervalued between 0.12 and 0.23, Fairly Valued between 0.45 and 0.23, Overvalued between 0.45 and 0.56, and Strongly Overvalued above 0.56. The current Forward PS of 0.13 falls within the Undervalued range.
3.75
P/OCF
Mercer International Inc. (MERC) has a current P/OCF of 3.75. The 5-year average P/OCF is 2.31. The thresholds are as follows: Strongly Undervalued below -10.62, Undervalued between -10.62 and -4.15, Fairly Valued between 8.78 and -4.15, Overvalued between 8.78 and 15.24, and Strongly Overvalued above 15.24. The current Forward P/OCF of 3.75 falls within the Historic Trend Line -Fairly Valued range.
-7.31
P/FCF
Mercer International Inc. (MERC) has a current P/FCF of -7.31. The 5-year average P/FCF is 10.75. The thresholds are as follows: Strongly Undervalued below -51.05, Undervalued between -51.05 and -20.15, Fairly Valued between 41.65 and -20.15, Overvalued between 41.65 and 72.55, and Strongly Overvalued above 72.55. The current Forward P/FCF of -7.31 falls within the Historic Trend Line -Fairly Valued range.
Mercer International Inc (MERC) has a current Price-to-Book (P/B) ratio of 0.61. Compared to its 3-year average P/B ratio of 0.93 , the current P/B ratio is approximately -34.61% higher. Relative to its 5-year average P/B ratio of 1.06, the current P/B ratio is about -43.07% higher. Mercer International Inc (MERC) has a Forward Free Cash Flow (FCF) yield of approximately 11.96%. Compared to its 3-year average FCF yield of -6.25%, the current FCF yield is approximately -291.38% lower. Relative to its 5-year average FCF yield of -3.02% , the current FCF yield is about -496.14% lower.
0.67
P/B
Median3y
0.93
Median5y
1.06
11.51
FCF Yield
Median3y
-6.25
Median5y
-3.02

Competitors Valuation Multiple

The average P/S ratio for MERC's competitors is 0.82, providing a benchmark for relative valuation. Mercer International Inc Corp (MERC) exhibits a P/S ratio of 0.13, which is -84.28% above the industry average. Given its robust revenue growth of -8.39%, this premium appears unsustainable.

Performance Decomposition

1Y
3Y
5Y
Market capitalization of MERC decreased by 40.76% over the past 1 year. The primary factor behind the change was an decrease in Margin Expansion from -3.02 to -4.41.
The secondary factor is the Revenue Growth, contributed -8.39%to the performance.
Overall, the performance of MERC in the past 1 year is driven by Margin Expansion. Which is more sustainable.
-8.39%
553.43M → 506.97M
Revenue Growth
+
46.03%
-3.02 → -4.41
Margin Expansion
+
-78.40%
-14.87 → -3.21
P/E Change
=
-40.76%
7.36 → 4.36
Mkt Cap Growth

FAQ

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

Mercer International Inc (MERC) is now in the Undervalued zone, suggesting that its current forward PS ratio of 0.12 is considered Undervalued compared with the five-year average of 92.18. The fair price of Mercer International Inc (MERC) is between 12.83 to 18.82 according to relative valuation methord. Compared to the current price of 4.27 USD , Mercer International Inc is Undervalued By 66.72% .
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What is Mercer International Inc (MERC) fair value?

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

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What is the current P/B ratio for Mercer International Inc (MERC) as of Jul 29 2025?

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What is the current FCF Yield for Mercer International Inc (MERC) as of Jul 29 2025?

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What is the current Forward P/E ratio for Mercer International Inc (MERC) as of Jul 29 2025?

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What is the current Forward P/S ratio for Mercer International Inc (MERC) as of Jul 29 2025?