Mereo BioPharma Valuation
| MREO Stock | USD 4.53 0.09 1.95% |
At this time, the firm appears to be overvalued. Mereo BioPharma Group secures a last-minute Real Value of $4.35 per share. The latest price of the firm is $4.53. Our model forecasts the value of Mereo BioPharma Group from analyzing the firm fundamentals such as Shares Outstanding of 153.85 M, operating margin of (37.90) %, and Return On Equity of -0.48 as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Mereo BioPharma's valuation include:
Price Book 9.0375 | Enterprise Value 629.5 M | Enterprise Value Ebitda (1.21) | Price Sales 710.8008 | Enterprise Value Revenue 629.5297 |
Overvalued
Today
Please note that Mereo BioPharma's price fluctuation is moderately volatile at this time. Calculation of the real value of Mereo BioPharma Group is based on 3 months time horizon. Increasing Mereo BioPharma's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since Mereo BioPharma is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Mereo Stock. However, Mereo BioPharma's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 4.53 | Real 4.35 | Target 4.25 | Hype 4.68 | Naive 4.56 |
The intrinsic value of Mereo BioPharma's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Mereo BioPharma's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Mereo BioPharma Group helps investors to forecast how Mereo stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Mereo BioPharma more accurately as focusing exclusively on Mereo BioPharma's fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Mereo BioPharma's intrinsic value based on its ongoing forecasts of Mereo BioPharma's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Mereo BioPharma's closest peers.
Mereo BioPharma Cash |
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Mereo Valuation Trend
Knowing Mereo BioPharma's actual value is paramount for traders when making sound investment determinations. Using both Mereo BioPharma's enterprise value as well as its market capitalization is the best way to estimate the value of the company and is usually enough for investors to make market timing decisions.
Mereo BioPharma Total Value Analysis
Mereo BioPharma Group is now forecasted to have valuation of 629.53 M with market capitalization of 710.8 M, debt of 5.95 M, and cash on hands of 94.3 M. Please note that valuation may be misleading and is a subject to auditing or accounting errors. We encourage investors to vigilantly validate all of the Mereo BioPharma fundamentals before making equity appraisal based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
629.53 M | 710.8 M | 5.95 M | 94.3 M |
Mereo BioPharma Investor Information
About 65.0% of the company shares are owned by institutional investors. The company recorded a loss per share of 0.25. Mereo BioPharma Group had not issued any dividends in recent years. Based on the key measurements obtained from Mereo BioPharma's financial statements, Mereo BioPharma Group is not in a good financial situation at this time. It has a very high odds of going through financial crisis in November.Mereo BioPharma Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Mereo BioPharma has an asset utilization ratio of 15.04 percent. This suggests that the Company is making $0.15 for each dollar of assets. An increasing asset utilization means that Mereo BioPharma Group is more efficient with each dollar of assets it utilizes for everyday operations.Mereo BioPharma Ownership Allocation
Mereo BioPharma Group maintains a total of 153.85 Million outstanding shares. Over half of Mereo BioPharma's outstanding shares are owned by institutional investors. These institutional investors are typically referred to as corporate investors that shop for positions in a given instrument to benefit from reduced trade commissions. Please note that no matter how many assets the company has, if the real value of the firm is less than the current market value, you may not be able to make money on it.Mereo BioPharma Profitability Analysis
The company reported the previous year's revenue of 10 M. Net Loss for the year was (29.47 M) with profit before overhead, payroll, taxes, and interest of 936 K.About Mereo BioPharma Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of Mereo BioPharma Group. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Mereo BioPharma Group based exclusively on its fundamental and basic technical indicators. By analyzing Mereo BioPharma's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of Mereo BioPharma's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of Mereo BioPharma. We calculate exposure to Mereo BioPharma's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Mereo BioPharma's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 7.4 M | 7.8 M | |
| Pretax Profit Margin | (3.00) | (3.15) | |
| Operating Profit Margin | (2.84) | (2.70) | |
| Net Loss | (2.95) | (3.09) | |
| Gross Profit Margin | 0.74 | 0.71 |
Mereo BioPharma Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines.
| Common Stock Shares Outstanding | 659.5 M |
Mereo BioPharma Current Valuation Indicators
Mereo BioPharma's valuation analysis is a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Mereo BioPharma's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Mereo BioPharma, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Mereo BioPharma's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Mereo BioPharma's worth.When determining whether Mereo BioPharma Group offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Mereo BioPharma's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Mereo Biopharma Group Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Mereo Biopharma Group Stock: Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Mereo BioPharma Group. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in income. You can also try the Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Is Biotechnology space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Mereo BioPharma. If investors know Mereo will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Mereo BioPharma listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (0.25) | Revenue Per Share 0.007 | Return On Assets (0.24) | Return On Equity (0.48) |
The market value of Mereo BioPharma Group is measured differently than its book value, which is the value of Mereo that is recorded on the company's balance sheet. Investors also form their own opinion of Mereo BioPharma's value that differs from its market value or its book value, called intrinsic value, which is Mereo BioPharma's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Mereo BioPharma's market value can be influenced by many factors that don't directly affect Mereo BioPharma's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Mereo BioPharma's value and its price as these two are different measures arrived at by different means. Investors typically determine if Mereo BioPharma is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Mereo BioPharma's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.