Mercia Asset Management PLC (MERC) Fair Value & Analysis

Financial Services · GB · Market cap 112M GBX

A solid business, but screening 26% overvalued on our models.

What matters now

• The price sits above even our optimistic bull case (£0.2500). The favourable scenario is already priced in.
• Solid but not exceptional quality (62/100) and above fair value, neither a clear bargain nor a standout compounder.
• Evidence is limited here (fewer models, shorter history), so the fair value is a rougher estimate than usual.
• For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.

Price vs Fair Value (5 years)

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 18, 2026.

How to read this chart

60‑month range £0.1973 – £0.3831 · fair‑value band £0.1600 – £0.2500 · the £0.2700 price screens above the £0.2000 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 18, 2026.

Full chart & analysis →

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Analysis

Mercia Asset Management PLC (MERC) currently trades at £0.2700, while our model-based Fair Value estimate is £0.2000, implying the stock looks roughly 25.9% overvalued today. The Quality Score stands at 62/100 (solid quality), in the Financial Services sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: low).

Over the trailing twelve months, Mercia Asset Management PLC generated revenue of £34.5M at a net margin of 9.7%. Revenue declined 3.9% year over year. It earns a return on equity of 1.8%. The balance sheet holds a net cash position of £25.4M. Fundamentals as of Jul 18, 2026

Our scenario range runs from £0.1600 (bear case) to £0.2500 (bull case); at £0.2700, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. For context, the median of 10 Financial Services peers we cover trades at -12% fair-value upside, at -26%, MERC screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Widest divergence: Asset-Based (£0.2800) versus Growth DCF (£0.2600). Highest evidence: Growth DCF (72).

Key figures & financial health

Quality Score breakdown

About the company

Mercia Asset Management PLC is a private equity and venture capital firm specializing in incubation, venture debt, loan, mezzanine, seed EIS, early stage, emerging growth, mid venture, late venture, later stage, buyout, and growth capital investments.

Full company description

Mercia Asset Management PLC is a private equity and venture capital firm specializing in incubation, venture debt, loan, mezzanine, seed EIS, early stage, emerging growth, mid venture, late venture, later stage, buyout, and growth capital investments. It invests in technology focusing on sectors such as retailing, energy, healthcare, industrials, materials, real estate, telecommunication services, engineering and specialist manufacturing, and life sciences. The firm invests in Midlands, North of the United Kingdom, the North of England, and Scotland. It typically invests equity between £0.005 million ($0.01 million) and £10 million ($13.49 million). It makes investment in debt between $0.02 million and $2.32 million. The firm also makes equity investments in companies either directly or via its funds under management and can also provide investments in form of debt or convertible securities. It prefers to take majority or minority stake in its portfolio companies. It seeks board position in its portfolio companies. Mercia Asset Management PLC was founded in 2014 and is based in Henley-in-Arden, United Kingdom with additional offices across Europe.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Mercia Asset Management PLC reported revenue of £34.1M in FY2026 versus £33.1M in FY2022, a compound +0.8%/yr. Reported net income was −£8.6M in FY2026.

MERC screens 26% overvalued. Compare with Fondul Proprietatea SA →

Peer Group

Asset Management · 971 stocks

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.

Valuation Multiples vs Asset Management median · lower = cheaper

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 0: the price sits above our fair-value range.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

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Frequently asked questions

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.