MRCY Valuation

Mercury Systems Inc

Add to Watchlist

Advanced Chart

53.365

+0.535(1.013%)1D

Overview
Forecast
Valuation
Earnings

MRCY Relative Valuation

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

Historical Valuation

Mercury Systems Inc (MRCY) is now in the Overvalued zone, suggesting that its current forward PS ratio of 3.41 is considered Overvalued compared with the five-year average of 130.68. The fair price of Mercury Systems Inc (MRCY) is between 35.14 to 52.03 according to relative valuation methord. Compared to the current price of 53.37 USD , Mercury Systems Inc is Overvalued By 2.56%.

Relative Value

Fair Zone

35.14-52.03

Current Price：53.37

2.56%

Overvalued

69.11

Trailing

Forward

27.28

EV/EBITDA

Mercury Systems Inc. (MRCY) has a current EV/EBITDA of 27.28. The 5-year average EV/EBITDA is -18.40. The thresholds are as follows: Strongly Undervalued below -359.55, Undervalued between -359.55 and -188.97, Fairly Valued between 152.17 and -188.97, Overvalued between 152.17 and 322.74, and Strongly Overvalued above 322.74. The current Forward EV/EBITDA of 27.28 falls within the Historic Trend Line -Fairly Valued range.

-338.80

EV/EBIT

Mercury Systems Inc. (MRCY) has a current EV/EBIT of -338.80. The 5-year average EV/EBIT is -250.62. The thresholds are as follows: Strongly Undervalued below -2397.50, Undervalued between -2397.50 and -1324.06, Fairly Valued between 822.81 and -1324.06, Overvalued between 822.81 and 1896.25, and Strongly Overvalued above 1896.25. The current Forward EV/EBIT of -338.80 falls within the Historic Trend Line -Fairly Valued range.

3.41

Mercury Systems Inc. (MRCY) has a current PS of 3.41. The 5-year average PS is 2.95. The thresholds are as follows: Strongly Undervalued below 1.61, Undervalued between 1.61 and 2.28, Fairly Valued between 3.63 and 2.28, Overvalued between 3.63 and 4.30, and Strongly Overvalued above 4.30. The current Forward PS of 3.41 falls within the Historic Trend Line -Fairly Valued range.

46.05

P/OCF

Mercury Systems Inc. (MRCY) has a current P/OCF of 46.05. The 5-year average P/OCF is -13.33. The thresholds are as follows: Strongly Undervalued below -491.46, Undervalued between -491.46 and -252.40, Fairly Valued between 225.73 and -252.40, Overvalued between 225.73 and 464.79, and Strongly Overvalued above 464.79. The current Forward P/OCF of 46.05 falls within the Historic Trend Line -Fairly Valued range.

197.79

P/FCF

Mercury Systems Inc. (MRCY) has a current P/FCF of 197.79. The 5-year average P/FCF is 434.70. The thresholds are as follows: Strongly Undervalued below -3959.77, Undervalued between -3959.77 and -1762.54, Fairly Valued between 2631.93 and -1762.54, Overvalued between 2631.93 and 4829.17, and Strongly Overvalued above 4829.17. The current Forward P/FCF of 197.79 falls within the Historic Trend Line -Fairly Valued range.

Mercury Systems Inc (MRCY) has a current Price-to-Book (P/B) ratio of 2.14. Compared to its 3-year average P/B ratio of 1.55 , the current P/B ratio is approximately 38.50% higher. Relative to its 5-year average P/B ratio of 1.90, the current P/B ratio is about 12.77% higher. Mercury Systems Inc (MRCY) has a Forward Free Cash Flow (FCF) yield of approximately 4.66%. Compared to its 3-year average FCF yield of -0.55%, the current FCF yield is approximately -951.97% lower. Relative to its 5-year average FCF yield of 0.09% , the current FCF yield is about 5232.76% lower.

2.14

P/B

Median3y

1.55

Median5y

1.90

4.66

FCF Yield

Median3y

-0.55

Median5y

0.09

Competitors Valuation Multiple

The average P/S ratio for MRCY's competitors is 1.83, providing a benchmark for relative valuation. Mercury Systems Inc Corp (MRCY) exhibits a P/S ratio of 3.41, which is 86.04% above the industry average. Given its robust revenue growth of 1.49%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Intuitive Machines Inc

Spirit AeroSystems Holdings Inc

0.58

9.60%

4.69B

Performance Decomposition

Market capitalization of MRCY increased by 39.39% over the past 1 year. The primary factor behind the change was an decrease in P/E Change from -24.21 to -47.33.

The secondary factor is the Revenue Growth, contributed 1.49%to the performance.

Overall, the performance of MRCY in the past 1 year is driven by P/E Change. Which is more unsustainable.

1.49%

208.26M → 211.36M

Revenue Growth

-57.62%

-21.40 → -9.07

Margin Expansion

95.52%

-24.21 → -47.33

P/E Change

39.39%