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Mercia Asset Management (LSE:MERC) Intrinsic Value: Projected FCF : £0.41 (As of May. 31, 2024)


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What is Mercia Asset Management Intrinsic Value: Projected FCF?

Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company. The details of how we calculate the intrinsic value of stocks are described in detail here.

As of today (2024-05-31), Mercia Asset Management's Intrinsic Value: Projected FCF is £0.41. The stock price of Mercia Asset Management is £0.316. Therefore, Mercia Asset Management's Price-to-Intrinsic-Value-Projected-FCF of today is 0.8.

The historical rank and industry rank for Mercia Asset Management's Intrinsic Value: Projected FCF or its related term are showing as below:

LSE:MERC' s Price-to-Projected-FCF Range Over the Past 10 Years
Min: 0.53   Med: 1   Max: 1.26
Current: 0.77

During the past 12 years, the highest Price-to-Intrinsic-Value-Projected-FCF of Mercia Asset Management was 1.26. The lowest was 0.53. And the median was 1.00.

LSE:MERC's Price-to-Projected-FCF is ranked better than
60.24% of 933 companies
in the Asset Management industry
Industry Median: 0.93 vs LSE:MERC: 0.77

Mercia Asset Management Intrinsic Value: Projected FCF Historical Data

The historical data trend for Mercia Asset Management's Intrinsic Value: Projected FCF can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Mercia Asset Management Intrinsic Value: Projected FCF Chart

Mercia Asset Management Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Intrinsic Value: Projected FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.28 0.29 0.31 0.40 0.41

Mercia Asset Management Semi-Annual Data
Mar13 Mar14 Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23
Intrinsic Value: Projected FCF Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only - 0.40 - 0.41 -

Competitive Comparison of Mercia Asset Management's Intrinsic Value: Projected FCF

For the Asset Management subindustry, Mercia Asset Management's Price-to-Projected-FCF, along with its competitors' market caps and Price-to-Projected-FCF data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Mercia Asset Management's Price-to-Projected-FCF Distribution in the Asset Management Industry

For the Asset Management industry and Financial Services sector, Mercia Asset Management's Price-to-Projected-FCF distribution charts can be found below:

* The bar in red indicates where Mercia Asset Management's Price-to-Projected-FCF falls into.



Mercia Asset Management Intrinsic Value: Projected FCF Calculation

Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company.

The details of how we calculate the intrinsic value of stocks are described in detail here.

This method smooths out the free cash flow over the past 6-7 years, multiplies the results by a growth multiple, and adds a portion of Total Stockholders Equity.

Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + 0.8 * Total Stockholders Equity (most recent) ) / Shares Outstanding (Diluted Average)

In the case of negative Total Stockholders Equity, the following formula is used (see Explanation section below for the reason):

Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + Total Stockholders Equity (most recent) / 0.8 ) / Shares Outstanding (Diluted Average)


Add all the Free Cash Flow together and divide 6 will get Mercia Asset Management's Free Cash Flow(6 year avg) = £1.87.

Mercia Asset Management's Intrinsic Value: Projected FCF for today is calculated as

Intrinsic Value: Projected FCF=(Growth Multiple*Free Cash Flow (6 year avg)+Total Stockholders Equity (Mar23)*0.8)/Shares Outstanding (Diluted Average)
=(12.184026879804*1.8687142857143+202.921*0.8)/449.348
=0.41

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Mercia Asset Management  (LSE:MERC) Intrinsic Value: Projected FCF Explanation

The growth multiple is capped between 8.35 and 17.74.

Total Stockholders Equity weighting is more art than science and it should always be revisited in more detail when researching a company. Weightings from 0% to 100% to more than 100% are possible. 80% was chosen as a happy median after taking the above ideas into consideration.

Mercia Asset Management's Price-to-Intrinsic-Value-Projected-FCF for today is calculated as

Price-to-Intrinsic-Value-Projected-FCF=Share Price/Intrinsic Value: Projected FCF
=0.316/0.41194189155803
=0.77

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Mercia Asset Management Intrinsic Value: Projected FCF Related Terms

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Mercia Asset Management (LSE:MERC) Business Description

Traded in Other Exchanges
N/A
Address
17 High Street, Forward House, Henley-in-Arden, Warwickshire, GBR, B95 5AA
Mercia Asset Management PLC is a specialist asset manager focusing on supporting regional SMEs. The company provides capital across its four asset classes proprietary balance sheet capital, venture capital, private equity, and debt. The company initially nurtures businesses via its third-party funds under management and then, over time, provides further funding to the companies by deploying direct investment follow-on capital from its balance sheet. It has more than eight offices in the UK region, approx. 20 university partnerships and extensive personal networks, providing it with access to high-quality deal flow.