Melrose Industries PLC (MRO) fair value: what the stock is really worth
We calculate from audited financials what Melrose Industries PLC is really worth. The fair value tells you whether the price is too high or too low, the quality score (0 to 100) how solid the business behind it is. 26 models, 37 quality factors, updated daily, free.
Compare price with fair valuebelow fair value = cheap, above = expensive
Check the quality50 and up solid, 75 and up strong
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A solid business, currently priced close to our fair value of £4.92.
As of Sep 8, 2026, the fair value of Melrose Industries PLC is £4.92 per share against a price of £4.99, so the fair value sits 1% below the price. A model estimate from reported figures, not an analyst target.
!Weak Growth (revenue 5y −12.8 %/yr)
✓Solidly profitable · 10.3% net margin
✓Moderate debt · generates free cash flow
·1.55% dividend yield
✓Ranks above peers (11/15)
!Moderate moat 48/100
Evidence: HighRange £2.64 to £7.79
Fair value as of: Sep 8, 2026
From 26 valuation models · updated yesterday
Share price +2.7% over the past month.
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What matters now
The model range is unusually wide (£2.64 to £7.79). The outcome hinges heavily on assumptions, so read the point estimate with caution.
The price sits close to our fair value, market and models broadly agree here, little valuation tension.
Price vs Fair Value (5 years)
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 8, 2026.
How to read this chart
60‑month range £1.75 – £6.75 · fair‑value band £2.64 – £7.79 · the £4.99 price screens above the £4.92 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Sep 8, 2026.
Melrose Industries PLC (MRO) currently trades at £4.99, while our model-based Fair Value estimate is £4.92, implying the stock looks roughly 1.3% fairly valued today. The Quality Score stands at 61/100 (solid quality), in the Industrials sector. Bull case: the Growth Earnings group reads highest at a median of £6.95 per share, and 12 of the 26 models we run sit above the £4.99 price. Bear case: the Dividend Discount group reads lowest at £1.00, and 14 of the 26 models stay below the price. Evidence for this calculation is high.
Over the trailing twelve months, Melrose Industries PLC generated revenue of £3.6B at a net margin of 10.3%. Revenue grew 8.3% year over year. It earns a return on equity of 13.1%. Net debt stands at £1.7B. Fundamentals as of Sep 8, 2026
Scenario range: £2.64 (bear) to £7.79 (bull), the price of £4.99 sits inside it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target. For context, the median of 10 Industrials peers we cover trades at −49% fair-value upside, at −1%, MRO screens cheaper than that median.
Fair Value models
Each model values the company its own way; the fair value above is the evidence-weighted blend. Evidence (0 to 100) shows how complete a model's inputs are. How we calculate →
ModelBear ⓘ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
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Key figures & financial health
P/E ratio17.2
P/S ratio1.77P/E × margin
EPS (TTM)£0.2900price ÷ EPS = P/E 17.2
Dividend yield1.6%payout 26.6%
Net margin10.3%FY2025
Return on equity13.1%TTM
More key figures
Profitability
Return on assets (EBIT)1.3%avg 5y
Operating margin8.4%TTM
Growth
Revenue (TTM)£3.6BTTM
Revenue growth (YoY)+8.3%3y avg −21.9%
EPS growth (YoY)+181%
Balance sheet & cash flow
Free cash flow128M GBXFY2025
Net debt1.7B GBXFY2025 · ≈ 13.6 yrs of FCF
Figures from reported company fundamentals · as of Sep 8, 2026. TTM = trailing twelve months.
Quality Score breakdown
Overall quality61/100
Of which business quality 55
· Market factors (momentum, volatility) 40
Profitability37
Margins and returns on capital today
Quality Growth56
Are margins and returns improving?
Cashflow27
Earnings quality: real cash, not paper profit
Fin. Strength46
Balance sheet, leverage, solvency risk
Investment99
Disciplined investing over empire-building
Low Volatility64
Calm price path (market factor)
Momentum36
Price trend over the last 3–12 months (market factor)
52W Momentum19
Distance to the 52-week high (market factor)
Net Issuance100
Buybacks instead of dilution
Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.
All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.
About the company
Melrose Industries PLC, together with its subsidiaries, designs and delivers aerospace components and systems for civil and defence markets in the United Kingdom, rest of Europe, North America, and internationally. The company operates through Engines and Airframes segments.
Full company description
Melrose Industries PLC, together with its subsidiaries, designs and delivers aerospace components and systems for civil and defence markets in the United Kingdom, rest of Europe, North America, and internationally. The company operates through Engines and Airframes segments. The Engines segment offers structural engineered components; parts repair; commercial and aftermarket contracts; engine mount structures; fan cases and turbine cases; and shafts and rotating components to engines original equipment manufacturers. The Airframes segment provides civil and defence air frames, including lightweight composite and metallic structures; electrical distribution systems and components; wing structures; empennage; fuselage; electrical wiring interconnection systems ("EWIS"); landing gear and ice protection systems; and aircraft transparencies to airframe original equipment manufacturers. The company was formerly known as New Melrose Industries PLC and changed its name to Melrose Industries PLC in November 2015. Melrose Industries PLC was founded in 2003 and is headquartered in London, United Kingdom.
Company description, as reported by the company or data provider.
Revenue & earnings trend
FY2021 – FY2025 · reported fiscal years
Melrose Industries PLC reported revenue of £3.6B in FY2025 versus £6.7B in FY2021, a compound −14.3%/yr. Reported net income was £370M in FY2025.
Growth Quality 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
£3.6B
Latest YoY
+3.5%
Avg. revenue growth/yr (3Y) ⓘ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.
−21.9%
Avg. revenue growth/yr (5Y) ⓘ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.
−12.8%
Avg. revenue growth/yr (20Y) ⓘ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.
+13.8%
EBIT margin (trend) ⓘ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.
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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
Quality Score61 · Above median
Fair Value upside−2% · Above median
Profitability
Return on equity (TTM)13% · Above median
Return on assets5% · Above median
Net margin (TTM)10% · Above median
Operating margin (TTM)8% · Above median
Growth and dividend
Revenue growth8% · Above median
Dividend yield (TTM)1.6% · Above median
Balance sheet
Debt / equity0.54× · Highest 25%
Valuation Multiples vs Specialty Industrial Machinery median · lower = cheaper
P/E (TTM)17.2× · Cheapest 25%
P/B2.77× · Pricier than median
P/S (TTM)2.18× · Pricier than median
P/FCF61.2× · Priciest 25%
EV/EBITDA9.9× · Cheaper than median
PEG0.72× · Cheapest 25%
What the price implies (reverse DCF)
The inverse question: what free-cash-flow growth must Melrose Industries PLC deliver for ten years so that today's price is fair in our DCF model? Same formula, same discount rate as the fair value.
Implied FCF growth, 10 years+23.4 % per year
Achieved revenue growth, 5 years-12.8 % p.a.
Sector median revenue growth+4.6 %
FCF yield on price2.01 %
Discount rate (WACC) in the models9.9 %
The price demands an acceleration versus past growth: a high bar the company still has to clear. Ranking of the largest stocks →
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.
This stockSector peers
VALUE32· sector 0
FUTURE42· sector 21
PAST52· sector 28
HEALTH73· sector 96
DIVIDEND31· sector 27
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
None of the checked exposures detected
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Is Melrose Industries PLC (MRO) overvalued or undervalued?
As of Sep 8, 2026, our model estimates a fair value of £4.92 versus a price of £4.99, about −1% upside (fairly valued).
What is the fair value of MRO?
Our model-based fair value for Melrose Industries PLC is £4.92 (as of Sep 8, 2026), built from audited fundamentals. The current price: £4.99.
What is the quality score of MRO?
Melrose Industries PLC has a Quality Score of 61/100. 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 Melrose Industries PLC (MRO)?
Our model-based price target is the fair value of £4.92 (as of Sep 8, 2026) from 26 valuation models. Cautious scenario £2.64, optimistic scenario £7.79. It is a calculation from audited fundamentals, not an analyst target.
What is the Melrose Industries PLC stock forecast for 2026?
Our models put fair value at £4.92, about −1% upside versus a price of £4.99 (fairly valued). Cautious scenario £2.64, optimistic scenario £7.79. The calculation is refreshed regularly with new filings.
What is the revenue of Melrose Industries PLC (MRO)?
Melrose Industries PLC reported trailing-twelve-month revenue of about £3.6B (latest available figure, as of Sep 8, 2026).
What is the net profit margin of MRO?
The net profit margin of Melrose Industries PLC is about 10.3%, meaning it keeps roughly 10.3% of revenue as net income. Based on the latest reported figures.
Does Melrose Industries PLC pay a dividend?
Melrose Industries PLC currently shows a dividend yield of about 1.55% relative to its recent price (as of Sep 8, 2026).
What growth is priced into Melrose Industries PLC (MRO)?
For today's price to be fair in a discounted-cash-flow model, Melrose Industries PLC would have to grow free cash flow by +23.4 % per year for ten years (discount rate 9.9 %, then 2 % perpetual growth). Over the last 5 years revenue grew -12.8 % per year. As of Sep 8, 2026.
What discount rate (WACC) does the fair value of MRO use?
Our models discount Melrose Industries PLC at 9.9 %: a base by market capitalisation, damped by beta 0.87, country premium for United Kingdom. The same rate applies in all 26 models.
What is the intrinsic value of Melrose Industries PLC (MRO)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Melrose Industries PLC it is £4.92 per share (as of Sep 8, 2026), against a price of £4.99. It is the blended result of 26 valuation models (cash flow, earnings, asset, dividend).
Is Melrose Industries PLC stock overvalued or undervalued in 2026?
As of Sep 8, 2026, MRO trades above its calculated fair value: price £4.99, fair value £4.92, a gap of about −1% (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 MRO?
No. The price is what the market pays today (£4.99); the fair value is what the company's own numbers justify (£4.92). For Melrose Industries PLC the two are £0.0650 per share apart. That gap is exactly why we show both numbers side by side.
How much is Melrose Industries PLC worth?
The market values Melrose Industries PLC at about 5.8B GBX (market capitalisation, as of Sep 8, 2026). Per share that is £4.99; our models calculate a fair value of £4.92 per share.
What do the bullish and bearish scenarios say about MRO?
Our models span a range for Melrose Industries PLC: cautious scenario £2.64, base £4.92, optimistic £7.79 per share (as of Sep 8, 2026, price £4.99). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of MRO?
Melrose Industries PLC trades at a price-to-earnings ratio of 17.2 (as of Sep 8, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of £4.92 is built from several models across several years. Other multiples: PEG 0.7, P/B 2.8, P/S 2.2, EV/EBITDA 9.9.
What is the PEG ratio of MRO?
The PEG ratio of Melrose Industries PLC is 0.72 (P/E divided by earnings growth, as of Sep 8, 2026). That is below 1, so growth is priced more cheaply than the earnings multiple alone suggests.
How solid is the balance sheet of Melrose Industries PLC (MRO)?
Balance-sheet figures for Melrose Industries PLC (as of Sep 8, 2026): return on equity 13.1%, debt of 0.54 per unit of equity. They feed the Quality Score of 61/100, which measures business quality independently of the share price.
Which stocks are comparable to Melrose Industries PLC?
From the same area (Industrials) we also value GE Vernova Inc, SIE, Eaton Corporation, Parker-Hannifin Corporation, 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 Melrose Industries PLC stock attractive at the current price?
The data as of Sep 8, 2026: price £4.99, calculated fair value £4.92 (−1%), Quality Score 61/100, from 26 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 MRO calculated?
We run Melrose Industries PLC through 26 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 £4.92, with the spread shown as a cautious and an optimistic scenario.
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