Meren Energy Inc. (MER) fair value: what the stock is really worth
As of Sep 23, 2026: fair value of Meren Energy Inc. C$2.07, price C$2.18, upside -4.9%, quality 43 out of 100. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 23, 2026.
How to read this chart
60‑month range C$0.9203 – C$2.76 · fair‑value band C$1.48 – C$2.66 · the C$2.18 price screens above the C$2.07 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Sep 23, 2026.
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Meren Energy Inc., together with its subsidiaries, operates as an oil and gas exploration and production company in Nigeria, Namibia, South Africa, and Equatorial Guinea. The company holds interests in producing and development assets in deepwater Nigeria. It also has a portfolio of development and exploration assets in the west and south of Africa.
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Meren Energy Inc., together with its subsidiaries, operates as an oil and gas exploration and production company in Nigeria, Namibia, South Africa, and Equatorial Guinea. The company holds interests in producing and development assets in deepwater Nigeria. It also has a portfolio of development and exploration assets in the west and south of Africa. Meren Energy Inc. was formerly known as Africa Oil Corp. and changed its name to Meren Energy Inc. in May 2025. The company was incorporated in 1993 and is based in Vancouver, Canada.
Stock analysis
Meren Energy Inc. (MER) currently trades at C$2.18, while our model-based Fair Value estimate is C$2.07, implying the stock looks roughly 5.1% fairly valued today.
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Valuation
Bull case: the DCF Models group reads highest at a median of C$4.37 per share, and 10 of the 16 models we run sit above the C$2.18 price.
Bear case: the Asset-Based group reads lowest at C$0.7600, and 6 of the 16 models stay below the price. Evidence for this calculation is medium.
Scenario range: C$1.48 (bear) to C$2.66 (bull), the price of C$2.18 sits inside it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 43/100 (below-average quality), in the Energy sector.
Weak Growth: Revenue growth is weak, negative or inconsistent.
Meren Energy Inc. reported revenue of $570M in FY2025 versus $0 in FY2022. Reported net income was −$32.2M in FY2025.
Key figures
Market cap C$1.4B (≈ $965M) · P/S ratio 2.25 · EPS (TTM) C$−0.3100 · Dividend yield 9.5% · Net margin −5.6% · Return on equity −15.4% · Return on assets (EBIT) −3.5% · Operating margin 24.6%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 42 out of 100 (low confidence).
What moves the price
The share trades about 12% below its 52-week high and 38% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Energy peers we cover trades at 10% fair-value upside, at −5%, MER screens richer than that median.
Fair Value models
Bear C$1.48Fair Value C$2.07Bull C$2.66
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above is their evidence-weighted blend, not the output of a single model.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target.Evidence ⓘEvidence = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.12/100
Revenue growth is weak, negative or inconsistent.
What shareholders gained per year ⓘWe only publish this rate when it is defensible. Reason: fiscal 2025 is a loss year, no rate is defined from a loss
not computed
Growth Forecast
Little optimism in the price
The price assumes less growth than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
−22.2%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+6.1%
Yearly sales growth analysts expect, extended to five years.
After inflation (Canada: IMF forecast 2.1% a year to 2030, 2.6% from 2016 to 2025) that is about −23.8% a year for the price and +3.9% for the forecasts.
Price, fair value, quality and upside side by side.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Oil & Gas E&P · 306 stocks
Beats the industry median on 8/11 measures
Overall it ranks above its industry peers.
Valuation
Quality Score43 · Below median
Fair Value upside−5% · Below median
Profitability
Return on assets4% · Above median
Net margin (TTM)−21% · Bottom 25%
Operating margin (TTM)25% · Above median
Growth and dividend
Revenue growth50% · Top 25%
Dividend yield (TTM)9.5% · Top 25%
Valuation Multiplesvs Oil & Gas E&P median · lower = cheaper
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Cite: Fair Value Calculator (2026). "Meren Energy Inc. Fair Value". https://www.fairvalue-calculator.com/stock/MER
Frequently asked questions
Is Meren Energy Inc. (MER) overvalued or undervalued?
As of Sep 23, 2026, our model estimates a fair value of C$2.07 versus a price of C$2.18, about −5% upside (fairly valued).
What is the fair value of MER?
Our model-based fair value for Meren Energy Inc. is C$2.07 (as of Sep 23, 2026), built from audited fundamentals. The current price: C$2.18.
What is the quality score of MER?
Meren Energy Inc. has a Quality Score of 43/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Meren Energy Inc. (MER)?
Our model-based price target is the fair value of C$2.07 (as of Sep 23, 2026) from 16 valuation models. Cautious scenario C$1.48, optimistic scenario C$2.66. It is a calculation from audited fundamentals, not an analyst target.
What is the Meren Energy Inc. stock forecast for 2026?
Our models put fair value at C$2.07, about −5% upside versus a price of C$2.18 (fairly valued). Cautious scenario C$1.48, optimistic scenario C$2.66. The calculation is refreshed regularly with new filings.
What is the revenue of Meren Energy Inc. (MER)?
Meren Energy Inc. reported trailing-twelve-month revenue of about C$598M (latest available figure, as of Sep 23, 2026).
Does Meren Energy Inc. pay a dividend?
Meren Energy Inc. currently shows a dividend yield of about 9.50% relative to its recent price (as of Sep 23, 2026).
What growth is priced into Meren Energy Inc. (MER)?
For today's price to be fair in a discounted-cash-flow model, Meren Energy Inc. would have to grow free cash flow by -22.2 % per year for five years (discount rate 9.6 %, then slowing evenly to 2 % perpetual growth by year ten). As of Sep 23, 2026.
What discount rate (WACC) does the fair value of MER use?
Our models discount Meren Energy Inc. at 9.6 %: a base by market capitalisation (small), damped by beta 0.39, country premium for Canada. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Meren Energy Inc. that is -22.2 % per year a year over ten years, using the same discount rate (9.6 %) and the same formula as our fair value.
How fast is the sector of Meren Energy Inc. (MER) growing?
The median revenue growth in the sector is +1.8 % a year. That is the yardstick for the growth priced into Meren Energy Inc. (-22.2 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Meren Energy Inc. (MER)?
The free-cash-flow yield on the price is 24.90 %: that much free cash flow Meren Energy Inc. produces per unit of market value. When it exceeds the discount rate of our models (9.6 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Meren Energy Inc. (MER)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Meren Energy Inc. it is C$2.07 per share (as of Sep 23, 2026), against a price of C$2.18. It is the blended result of 16 valuation models (cash flow, earnings, asset, dividend).
Is Meren Energy Inc. stock overvalued or undervalued in 2026?
As of Sep 23, 2026, MER trades above its calculated fair value: price C$2.18, fair value C$2.07, a gap of about −5% (fairly valued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of MER?
No. The price is what the market pays today (C$2.18); the fair value is what the company's own numbers justify (C$2.07). For Meren Energy Inc. the two are C$0.1060 per share apart. That gap is exactly why we show both numbers side by side.
How much is Meren Energy Inc. worth?
The market values Meren Energy Inc. at about C$1.4B (market capitalisation, as of Sep 23, 2026). Per share that is C$2.18; our models calculate a fair value of C$2.07 per share.
What do the bullish and bearish scenarios say about MER?
Our models span a range for Meren Energy Inc.: cautious scenario C$1.48, base C$2.07, optimistic C$2.66 per share (as of Sep 23, 2026, price C$2.18). The range comes from different growth and margin assumptions, not from analyst opinions.
How solid is the balance sheet of Meren Energy Inc. (MER)?
Balance-sheet figures for Meren Energy Inc. (as of Sep 23, 2026): return on equity −15.4%. They feed the Quality Score of 43/100, which measures business quality independently of the share price.
How far is MER from its 52-week high?
Meren Energy Inc. trades at C$2.18, about 12% below its 52-week high of C$2.48 and 38% above the low of C$1.58 (as of Sep 23, 2026). Distance from the high says nothing about value: that is what the fair value of C$2.07 is for.
Which stocks are comparable to Meren Energy Inc.?
From the same area (Energy) we also value CNOOC Limited, ConocoPhillips explores for,, Canadian Natural Resources Limited, EOG Resources, Inc, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Meren Energy Inc. stock attractive at the current price?
The data as of Sep 23, 2026: price C$2.18, calculated fair value C$2.07 (−5%), Quality Score 43/100, from 16 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of MER calculated?
We run Meren Energy Inc. through 16 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of C$2.07, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 14.1 % above its aggregate fair value. Meren Energy Inc. itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Meren Energy Inc. (MER)?
The closing price on Sep 23, 2026 was C$2.18. Our model-based fair value is C$2.07, about −5% upside (fairly valued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Meren Energy Inc. right now?
The price sits close to our fair value, market and models broadly agree here, little valuation tension. The price sits in the upper half of our model range, so the margin of safety is thin. Read the verdict with care: some models are missing inputs, so the estimate scatters more than usual.
Key figures of Meren Energy Inc.
How large is the market capitalisation of Meren Energy Inc. (MER)?
The market capitalisation of Meren Energy Inc. is C$1.4B (≈ $965M). The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Meren Energy Inc. (MER)?
The price-to-sales ratio of Meren Energy Inc. is 2.25 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Meren Energy Inc. (MER)?
Earnings per share at Meren Energy Inc. are C$−0.3100. Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Meren Energy Inc. (MER)?
The dividend yield of Meren Energy Inc. is 9.5%. Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Meren Energy Inc. (MER)?
The net margin of Meren Energy Inc. is −5.6% (fiscal year 2025). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Meren Energy Inc. (MER)?
The return on equity (ROE) of Meren Energy Inc. is −15.4% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Meren Energy Inc. (MER)?
On an EBIT basis the return on assets of Meren Energy Inc. is −3.5% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Meren Energy Inc. (MER)?
The operating margin of Meren Energy Inc. is 24.6% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Meren Energy Inc. (MER)?
Revenue at Meren Energy Inc. is growing +49.6% versus a year earlier. How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How much net debt does Meren Energy Inc. (MER) carry?
The net debt of Meren Energy Inc. is C$162M (fiscal year 2025, ≈ 0.5 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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