The Discounted Cash Flow (DCF) valuation of Mercantile Investment Trust PLC (MRC.L) is 351.68 GBP. With the latest stock price at 249.00 GBP, the upside of Mercantile Investment Trust PLC based on DCF is 41.2%.
Based on the latest price of 249.00 GBP and our DCF valuation, Mercantile Investment Trust PLC (MRC.L) is a buy. Buying MRC.L stocks now will result in a potential gain of 41.2%.
Range | Selected | |
WACC / Discount Rate | 9.1% - 11.2% | 10.1% |
Long-term Growth Rate | 0.0% - 1.0% | 0.5% |
Fair Price | 303.7 - 418.02 | 351.68 |
Upside | 22.0% - 67.9% | 41.2% |
(GBP in millions) | Projections | |||||
01-2025 | 01-2026 | 01-2027 | 01-2028 | 01-2029 | 01-2030 | |
Revenue | 266 | 278 | 291 | 298 | 304 | 315 |
% Growth | 172% | 5% | 5% | 3% | 2% | 4% |
Cost of goods sold | (22) | (23) | (24) | (25) | (25) | (26) |
% of Revenue | 8% | 8% | 8% | 8% | 8% | 8% |
Selling, G&A expenses | (2) | (2) | (2) | (2) | (2) | (2) |
% of Revenue | 1% | 1% | 1% | 1% | 1% | 1% |
Research & Development | 0 | 0 | 0 | 0 | 0 | 0 |
% of Revenue | 0% | 0% | 0% | 0% | 0% | 0% |
Net interest & other expenses | 0 | 0 | 0 | 0 | 0 | 0 |
% of Revenue | 0% | 0% | 0% | 0% | 0% | 0% |
Tax expense | (1) | (1) | (1) | (1) | (1) | (1) |
Tax rate | 0% | 0% | 0% | 0% | 0% | 0% |
Net profit | 241 | 253 | 264 | 271 | 276 | 286 |
% Margin | 91% | 91% | 91% | 91% | 91% | 91% |