Melcor Developments Ltd. (MRD) fair value: what the stock is really worth
As of Nov 12, 2026: fair value (intrinsic value) of Melcor Developments Ltd. stock C$38.93, price C$19.00, upside +104.9%, quality 74 out of 100. Rating: strongly undervalued. Calculated from audited financials with 16 of our 26 valuation models and 37 quality factors, updated daily.
69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 12, 2026.
How to read this chart
60‑month range C$8.17 – C$19.31 · fair‑value band C$27.00 – C$63.65 · the C$19.00 price screens below the C$38.93 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 12, 2026.
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Melcor Developments Ltd. operates as a real estate development company in the United States and Canada. The company operates through Land, Properties, and Golf divisions.
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The company develops, owns, and manages mixed-use residential, business industrial parks, office buildings, retail commercial centers, and golf courses.
It also purchases and develops land to be sold as residential communities, industrial, and commercial projects; develops and leases retail, office, and industrial properties; and owns and leases commercial, retail, and residential properties, as well as parking lots and land.
In addition, the company owns and manages 18-hole golf courses. The company was founded in 1923 and is based in Edmonton, Canada. Melcor Developments Ltd. operates as a subsidiary of Melton Holdings Ltd.
Stock analysis
Melcor Developments Ltd. (MRD) currently trades at C$19.00, while our model-based Fair Value estimate is C$38.93, implying the stock looks roughly 51% undervalued today.
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Valuation
Bull case: the DCF Models group reads highest at a median of C$56.45 per share, and 13 of the 16 models we run sit above the C$19.00 price.
Bear case: the Dividend Discount group reads lowest at C$8.76, and 3 of the 16 models stay below the price. Data coverage for this calculation is high.
Scenario range: C$27.00 (bear) to C$63.65 (bull), the price of C$19.00 sits below 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 74/100 (solid quality), in the Real Estate sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Melcor Developments Ltd. reported revenue of C$411M in FY2025 versus C$316M in FY2021, a compound +6.8%/yr. Reported net income was C$58.0M in FY2025, compounding +0.7%/yr from FY2021.
Key figures
Market cap C$569M (≈ $399M) Small · P/E ratio 6.1 · P/S ratio 1.60 · EPS (TTM) C$3.14 · Dividend yield 2.5% · Net margin 26.6% · Return on equity 7.4% · Return on assets (EBIT) 5.3% (5-year average).
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 66 out of 100 (low confidence).
What moves the price
The share trades about 2% below its 52-week high and 38% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Real Estate peers we cover trades at −4% fair-value upside, at 105%, MRD screens cheaper than that median.
Fair Value models
BearC$27.00Fair Value C$38.93BullC$63.65
Price C$19.00 · Upside +104.9%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2025 figures (about 10 months old). Earnings retained since then (C$2.31 per share) are deliberately not added.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. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = 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.92/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Revenue growth 1 year
+17.5%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+19.3%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+12.6%
Start year 2020 (pandemic). Over 10 years: +4.5% a year
Revenue growth 32 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+7.4%
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What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate.
+13.5%
Earnings growth per share plus dividend.
Earnings per share, growth per year+11.0%
Dividend (yield on the price)2.5%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.11.0% vs −1.8%, picking up
Profit margin 2019 to 2024 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.26% → 24%
Pace: the 5-year rate starts in 2020 (pandemic)
Growth Forecast
Little optimism in the price
The price assumes less growth than the company has delivered so far.
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).
+2.5%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect
n/a
No analyst forecast available.
After inflation (Canada: IMF forecast 2.1% a year to 2030, 2.6% from 2016 to 2025) that is about +0.4% a year for the price.
Compare Melcor Developments Ltd. with another stock
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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.Real Estate - Development · 491 stocks
Beats the industry median on 11/15 measures
Overall it ranks above its industry peers.
Valuation
Quality Score74 · Top 25%
Fair Value upside+104.9% · Above median
Profitability
Return on equity (12 months)7.4% · Above median
Return on assets2.8% · Above median
Net margin (12 months)26.6% · Top 25%
Operating margin (12 months)35.3% · Top 25%
Growth and dividend
Revenue growth (quarter YoY)−16.7% · Below median
Dividend yield (12 months)2.5% · Below median
Balance sheet
Debt / equity0.43× · Above median
Valuation Multiplesvs Real Estate - Development median · lower = cheaper
P/E (12 months)6.1× · Cheapest 25%
P/B0.45× · Cheaper than median
P/S (12 months)1.60× · Cheaper than median
Price / free cash flow (fiscal year)6.2× · Cheaper than median
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Is Melcor Developments Ltd. (MRD) overvalued or undervalued?
As of Nov 12, 2026, our model estimates a fair value of C$38.93 versus a price of C$19.00, about +105% upside (undervalued).
What is the fair value of MRD?
Our model-based fair value for Melcor Developments Ltd. is C$38.93 (as of Nov 12, 2026), built from audited fundamentals. The current price: C$19.00.
What is the quality score of MRD?
Melcor Developments Ltd. has a Quality Score of 74/100. 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 Melcor Developments Ltd. (MRD)?
Our model-based price target is the fair value of C$38.93 (as of Nov 12, 2026) from 16 valuation models. Cautious scenario C$27.00, optimistic scenario C$63.65. It is a calculation from audited fundamentals, not an analyst target.
What is the Melcor Developments Ltd. stock forecast for 2026?
Our models put fair value at C$38.93, about +105% upside versus a price of C$19.00 (undervalued). Cautious scenario C$27.00, optimistic scenario C$63.65. The calculation is refreshed regularly with new filings.
What is the revenue of Melcor Developments Ltd. (MRD)?
Melcor Developments Ltd. reported trailing-twelve-month revenue of about C$355M (latest available figure, as of Nov 12, 2026).
Does Melcor Developments Ltd. pay a dividend?
Melcor Developments Ltd. currently shows a dividend yield of 2.53% relative to its recent price (as of Nov 12, 2026).
How much is the dividend of Melcor Developments Ltd. (MRD) and when is the ex-dividend date?
Melcor Developments Ltd. pays a dividend of C$0.48 per share a year, a dividend yield of 2.5%. The next ex-dividend date is Dec 15, 2026. A dividend has been paid every year since 1990. The payout ratio is 15.3% of earnings. Free cash flow covers the dividend 6.39 times. Our assessment: Well covered. A low payout and the dividend is fully funded by free cash flow, a comfortable, sustainable dividend.
What growth is priced into Melcor Developments Ltd. (MRD)?
For today's price to be fair in a discounted-cash-flow model, Melcor Developments Ltd. would have to grow free cash flow by +2.5 % per year for five years (discount rate 11.1 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +12.6 % per year. As of Nov 12, 2026.
What discount rate (WACC) does the fair value of MRD use?
Our models discount Melcor Developments Ltd. at 11.1 %: a base by market capitalisation (small), damped by beta 1.02, 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 Melcor Developments Ltd. that is +2.5 % per year for five years, then slowing evenly to 2 % by year ten, using the same discount rate (11.1 %) and the same formula as our fair value.
How much growth has Melcor Developments Ltd. (MRD) delivered so far?
Over the past 5 years revenue at Melcor Developments Ltd. grew +12.6 % a year. The price currently implies free-cash-flow growth of +2.5 % per year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Melcor Developments Ltd. (MRD) growing?
The median revenue growth in the sector is +2.8 % a year. That is the yardstick for the growth priced into Melcor Developments Ltd. (+2.5 % per year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Melcor Developments Ltd. (MRD)?
The free-cash-flow yield on the price is 16.14 %: that much free cash flow Melcor Developments Ltd. produces per unit of market value. When it exceeds the discount rate of our models (11.1 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Melcor Developments Ltd. (MRD)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Melcor Developments Ltd. it is C$38.93 per share (as of Nov 12, 2026), against a price of C$19.00. It is the blended result of 16 valuation models in 6 families (DCF Models, Dividend Discount, Multiples, Asset-Based, Growth DCF, Economic Profit).
Is Melcor Developments Ltd. stock overvalued or undervalued in 2026?
As of Nov 12, 2026, MRD trades below its calculated fair value: price C$19.00, fair value C$38.93, a gap of about +105% (undervalued). 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 MRD?
No. The price is what the market pays today (C$19.00); the fair value is what the company's own numbers justify (C$38.93). For Melcor Developments Ltd. the two are C$19.93 per share apart. That gap is exactly why we show both numbers side by side.
How much is Melcor Developments Ltd. worth?
The market values Melcor Developments Ltd. at about C$569M (market capitalisation, as of Nov 12, 2026). Per share that is C$19.00; our models calculate a fair value of C$38.93 per share.
What do the bullish and bearish scenarios say about MRD?
Our models span a range for Melcor Developments Ltd.: cautious scenario C$27.00, base C$38.93, optimistic C$63.65 per share (as of Nov 12, 2026, price C$19.00). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of MRD?
Melcor Developments Ltd. trades at a price-to-earnings ratio of 6.1 (as of Nov 12, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of C$38.93 is built from several models across several years. Median P/E at fiscal year-end, 10 fiscal years (2016 to 2025), reported earnings: 10.1. Other multiples: PEG 1.1, P/B 0.5, P/S 1.6, EV/EBITDA 8.3.
What is the PEG ratio of MRD?
The PEG ratio of Melcor Developments Ltd. is 1.11 (P/E divided by earnings growth, as of Nov 12, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of Melcor Developments Ltd. (MRD)?
Balance-sheet figures for Melcor Developments Ltd. (as of Nov 12, 2026): return on equity 7.4%, debt of 0.43 per unit of equity. They feed the Quality Score of 74/100, which measures business quality independently of the share price.
How far is MRD from its 52-week high?
Melcor Developments Ltd. trades at C$19.00, about 2% below its 52-week high of C$19.31 and 38% above the low of C$13.79 (as of Nov 12, 2026). Distance from the high says nothing about value: that is what the fair value of C$38.93 is for.
Which stocks are comparable to Melcor Developments Ltd.?
From the same area (Real Estate) we also value Sun Hung Kai Properties Limited, CK Asset Holdings, DLF Limited, Hongkong Land Holdings, 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 Melcor Developments Ltd. stock attractive at the current price?
The data as of Nov 12, 2026: price C$19.00, calculated fair value C$38.93 (+105%), Quality Score 74/100, 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 MRD calculated?
We run Melcor Developments Ltd. through 16 models from 6 families: DCF Models, Dividend Discount, Multiples, Asset-Based, Growth DCF, Economic Profit. Every model gets the same audited fundamentals; the fair value of C$38.93 builds on their evidence-weighted average, 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 14.3% above its aggregate fair value. Melcor Developments Ltd. currently trades 51% below its own fair value, and the market average says nothing about that. 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 Melcor Developments Ltd. (MRD)?
The closing price on Nov 12, 2026 was C$19.00. Our model-based fair value is C$38.93, about +105% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Melcor Developments Ltd. right now?
The price is below even our cautious bear case (C$27.00). The market is more pessimistic than our downside scenario. Solid quality (74/100) at a price below fair value, the discount is the argument here, not the business quality. A fairly wide model range (C$27.00 to C$63.65) leaves room in how you read the outcome. As a real-estate business, asset- and dividend-based methods carry more weight here than a standard DCF.
Where does the earnings growth of Melcor Developments Ltd. (MRD) come from?
Earnings per share at Melcor Developments Ltd. grew −2.6 % a year from 2014 to 2025. Broken into its drivers: revenue per share +4.0 %, EBIT margin −2.8 %, tax rate −1.6 %, residual (interest, one-offs) −2.0 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Melcor Developments Ltd.
How large is the market capitalisation of Melcor Developments Ltd. (MRD)?
The market capitalisation of Melcor Developments Ltd. is C$569M (≈ $399M). 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 Melcor Developments Ltd. (MRD)?
The price-to-sales ratio of Melcor Developments Ltd. is 1.60 (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 Melcor Developments Ltd. (MRD)?
Earnings per share at Melcor Developments Ltd. are C$3.14 (price ÷ EPS = P/E 6.1). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Melcor Developments Ltd. (MRD)?
The dividend yield of Melcor Developments Ltd. is 2.5% (payout 15.3%). 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 Melcor Developments Ltd. (MRD)?
The net margin of Melcor Developments Ltd. is 26.6% (last twelve months). 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 Melcor Developments Ltd. (MRD)?
The return on equity (ROE) of Melcor Developments Ltd. is 7.4% (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 Melcor Developments Ltd. (MRD)?
On an EBIT basis the return on assets of Melcor Developments Ltd. is 5.3% (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 Melcor Developments Ltd. (MRD)?
The operating margin of Melcor Developments Ltd. is 35.3% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Melcor Developments Ltd. (MRD)?
Revenue at Melcor Developments Ltd. is growing −16.7% versus a year earlier (3y avg +19.3%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Melcor Developments Ltd. (MRD)?
Earnings per share at Melcor Developments Ltd. are growing +28.3% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Melcor Developments Ltd. (MRD) carry?
The net debt of Melcor Developments Ltd. is C$474M (fiscal year 2025, ≈ 5.2 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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Broad data
Nov 12, 2026