MREO PE Ratio & Valuation,Is MREO Overvalued

MREO Relative Valuation

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

Historical Valuation

Mereo BioPharma Group PLC (MREO) is now in the Undervalued zone, suggesting that its current forward PS ratio of 12.12 is considered Undervalued compared with the five-year average of -83.44. The fair price of Mereo BioPharma Group PLC (MREO) is between 269.06 to 271.75 according to relative valuation methord. Compared to the current price of 2.17 USD , Mereo BioPharma Group PLC is Undervalued By 99.19%.

Relative Value

Fair Zone

269.06-271.75

Current Price：2.17

99.19%

Undervalued

-102.34

8.20

EV/EBITDA

Mereo BioPharma Group PLC. (MREO) has a current EV/EBITDA of 8.20. The 5-year average EV/EBITDA is -1.09. The thresholds are as follows: Strongly Undervalued below -13.52, Undervalued between -13.52 and -7.31, Fairly Valued between 5.13 and -7.31, Overvalued between 5.13 and 11.35, and Strongly Overvalued above 11.35. The current Forward EV/EBITDA of 8.20 falls within the Overvalued range.

-6.06

EV/EBIT

Mereo BioPharma Group PLC. (MREO) has a current EV/EBIT of -6.06. The 5-year average EV/EBIT is -4.81. The thresholds are as follows: Strongly Undervalued below -12.16, Undervalued between -12.16 and -8.48, Fairly Valued between -1.13 and -8.48, Overvalued between -1.13 and 2.54, and Strongly Overvalued above 2.54. The current Forward EV/EBIT of -6.06 falls within the Historic Trend Line -Fairly Valued range.

12.12

Mereo BioPharma Group PLC. (MREO) has a current PS of 12.12. The 5-year average PS is 9.57. The thresholds are as follows: Strongly Undervalued below -9.21, Undervalued between -9.21 and 0.18, Fairly Valued between 18.96 and 0.18, Overvalued between 18.96 and 28.35, and Strongly Overvalued above 28.35. The current Forward PS of 12.12 falls within the Historic Trend Line -Fairly Valued range.

6.39

P/OCF

Mereo BioPharma Group PLC. (MREO) has a current P/OCF of 6.39. The 5-year average P/OCF is -7.91. The thresholds are as follows: Strongly Undervalued below -71.53, Undervalued between -71.53 and -39.72, Fairly Valued between 23.91 and -39.72, Overvalued between 23.91 and 55.72, and Strongly Overvalued above 55.72. The current Forward P/OCF of 6.39 falls within the Historic Trend Line -Fairly Valued range.

2.79

P/FCF

Mereo BioPharma Group PLC. (MREO) has a current P/FCF of 2.79. The 5-year average P/FCF is -9.50. The thresholds are as follows: Strongly Undervalued below -46.83, Undervalued between -46.83 and -28.17, Fairly Valued between 9.16 and -28.17, Overvalued between 9.16 and 27.82, and Strongly Overvalued above 27.82. The current Forward P/FCF of 2.79 falls within the Historic Trend Line -Fairly Valued range.

Mereo BioPharma Group PLC (MREO) has a current Price-to-Book (P/B) ratio of 7.43. Compared to its 3-year average P/B ratio of 5.99 , the current P/B ratio is approximately 23.95% higher. Relative to its 5-year average P/B ratio of 3.56, the current P/B ratio is about 108.48% higher. Mereo BioPharma Group PLC (MREO) has a Forward Free Cash Flow (FCF) yield of approximately -9.48%. Compared to its 3-year average FCF yield of -15.32%, the current FCF yield is approximately -38.13% lower. Relative to its 5-year average FCF yield of -15.99% , the current FCF yield is about -40.72% lower.

7.43

P/B

Median3y

5.99

Median5y

3.56

-9.48

FCF Yield

Median3y

-15.32

Median5y

-15.99

Competitors Valuation Multiple

The average P/S ratio for MREO's competitors is 6534.62, providing a benchmark for relative valuation. Mereo BioPharma Group PLC Corp (MREO) exhibits a P/S ratio of 12.12, which is -99.81% above the industry average. Given its robust revenue growth of %, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of MREO increased by 0.00% over the past 1 year. The primary factor behind the change was an decrease in Unknown from 0.00 to 0.00.

The secondary factor is the Unknown, contributed 0.00%to the performance.

Overall, the performance of MREO in the past 1 year is driven by Unknown.

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Frequently Asked Questions

Is Mereo BioPharma Group PLC (MREO) currently overvalued or undervalued?

What is Mereo BioPharma Group PLC (MREO) fair value?

MREO'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 Mereo BioPharma Group PLC (MREO) is between 269.06 to 271.75 according to relative valuation methord.

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

What is the current P/B ratio for Mereo BioPharma Group PLC (MREO) as of Dec 15 2025?

As of Dec 15 2025, Mereo BioPharma Group PLC (MREO) has a P/B ratio of 7.43. This indicates that the market values MREO at 7.43 times its book value.

What is the current FCF Yield for Mereo BioPharma Group PLC (MREO) as of Dec 15 2025?

As of Dec 15 2025, Mereo BioPharma Group PLC (MREO) has a FCF Yield of -9.48%. This means that for every dollar of Mereo BioPharma Group PLC’s market capitalization, the company generates -9.48 cents in free cash flow.

What is the current Forward P/E ratio for Mereo BioPharma Group PLC (MREO) as of Dec 15 2025?

As of Dec 15 2025, Mereo BioPharma Group PLC (MREO) has a Forward P/E ratio of -102.34. This means the market is willing to pay $-102.34 for every dollar of Mereo BioPharma Group PLC’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for Mereo BioPharma Group PLC (MREO) as of Dec 15 2025?

As of Dec 15 2025, Mereo BioPharma Group PLC (MREO) has a Forward P/S ratio of 12.12. This means the market is valuing MREO at $12.12 for every dollar of expected revenue over the next 12 months.

MREO Valuation