As of 2025-07-06, the Fair Value of Michelmersh Brick Holdings PLC (MBH.L) is 32.32 GBP. This value is based on the Peter Lynch's Fair Value formula. With the current market price of 106.5 GBP, the upside of Michelmersh Brick Holdings PLC is -69.7%.

Is MBH.L a good investment?

With the market price of 106.5 GBP and our fair value calculation, Michelmersh Brick Holdings PLC (MBH.L) is not a good investment. Investing in MBH.L stocks now will result in a potential loss of 69.7%.

106.5 GBP

Stock Price

32.32 GBP

Fair Price

FAIR VALUE CALCULATION

MBH.L Fair Value

Peter Lynch's formula is:

MBH.L Fair Value

= Earnings Growth Rate x TTM EPS

MBH.L Fair Value

= 5 x 6.46

MBH.L Fair Value

= 32.32

The earnings growth rate we use in the formula is the average growth rate of net income/earnings over the last 5 years. If the average growth rate is smaller than 5%, we set it to 5%. If it is larger than 25%, we set it to 25%. If the TTM EPS is negative, Peter Lynch Fair Value's result can be unreliable.

	Historical Earnings

	12-2020	12-2021	12-2022	12-2023	12-2024	5Y Avg
Net income	4.93	6.13	8.88	9.66	6.1	7
YoY growth	-42.7%	24.2%	44.8%	8.8%	-36.8%	-0.3%

MBH.L Fair Value - Peers Benchmarking

	Market Cap (mil)	EPS	Fair Value	Upside
a
Michelmersh Brick Holdings PLC	101	6.5	32.32	-69.7%
Sigmaroc PLC	1,195	2.1	51.37	-51.4%
Ibstock PLC	595	3.7	91.93	-36.6%
Steppe Cement Ltd	35	0.4	1.62	-89.9%
Bursa Cimento Fabrikasi AS	1,801	0.2	1.05	-43.7%
Zaklady Magnezytowe Ropczyce SA	119	1.9	9.56	-65.9%
Afyon Cimento Sanayi TAS	1,296	0.2	0.78	-75.9%
Batisoke Soke Cimento Sanayii TAS	1,008	-0.9	-4.36	-272.9%
Goltas Goller Bolgesi Cimento Sanayi ve Ticaret AS	688	0	0.12	-99.7%
Egeplast Ege Plastik Ticaret ve Sanayi AS	394	4.1	20.62	4.8%
Mathios Refractory SA	7	0	0.1	-85.5%

MBH.L Fair Value - Key Data

Market Cap (mil)	101
P/E	16.5x
Forward P/E	14.8x

EPS	6.46
Avg earnings growth rate	-0.3%
TTM earnings	6

MBH.L Fair Value - Formula's Origin

Peter Lynch is one of the most legendary investors/fund managers of all time. His philosophy for stock investing is very simple and straightforward: he invests in stocks that are undervalued, meaning its P/E is less than or equal to its earnings growth rate. He believes that if a stock is trading at its fair value, the PEG ratio, which was also invented by him, should be 1.

Therefore, his formula to determine a company's fair value is:

Peter Lynch Fair Value = Earnings Growth Rate * EPS * PEG

PEG is set to 1 so we can ignore it in the calculation. Based on the formula, if the earnings growth rate of a company is 15%, Peter Lynch is willing to buy its share up to P/E = 15.