Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. As of today (2026-06-26), Mercia Asset Management's Beta is 0.8045.
Beta is a measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole. We usually compare beta to 1. A beta of 1 indicates that the security's price will move with the market. A beta of less than 1 means that the security will be less volatile than the market. A beta of greater than 1 indicates that the security's price will be more volatile than the market.
Beta is primarily used in the Capital Asset Pricing Model (CAPM) to calculate the Cost of Equity, which can be used in the calculation of WACC %. The formula of Cost of Equity is:
Cost of Equity = Risk-Free Rate of Return + Beta of Asset * (Expected Return of the Market - Risk-Free Rate of Return)
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Asset Management subindustry, Mercia Asset Management's Beta, along with its competitors' market caps and Beta data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Mercia Asset Management Beta vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Mercia Asset Management's Beta distribution charts can be found below:
* The bar in red indicates where Mercia Asset Management's Beta falls into.
Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. A stock's beta can be calculated by dividing the product of the covariance of the individual stock's returns and the market's returns by the variance of the market's returns over a specified period. Basically, GuruFocus uses the returns calculated over three-year period.
Mercia Asset Management (LSE:MERC) has a Beta of 0.8045 as of Jun. 26, 2026. Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. View historical data for Mercia Asset Management and its competitors.
Is Mercia Asset Management's Beta too high?
Mercia Asset Management's current Beta is 0.8045. Overall, Mercia Asset Management has a GF Score™ of 54/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Mercia Asset Management's Beta compare to BLK and BX?
Mercia Asset Management's Beta of 0.8045 can be compared against companies in the Asset Management industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Beta for an Asset Management company?
A good Beta depends on the Asset Management industry context. However, Beta should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Beta mean?
A high Beta can signal that a stock is expensive relative to its fundamentals. Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. View historical data for Mercia Asset Management and its competitors. Mercia Asset Management's current Beta is 0.8045. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Mercia Asset Management stock overvalued right now?
Based on GuruFocus' analysis, Mercia Asset Management (LSE:MERC) is currently considered Modestly Undervalued. The stock's GF Value™ is £0.36, compared to a current price of £0.29 — trading 20.1% below its estimated fair value. The current Beta is 0.8045. Mercia Asset Management's overall GF Score™ is 54/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Beta calculated?
Beta is calculated from a company's financial statements. For Mercia Asset Management (LSE:MERC), the current Beta is 0.8045 as of Jun. 26, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Mercia Asset Management (LSE:MERC) Overvalued in 2026?
Based on GuruFocus' analysis, Mercia Asset Management stock appears to be undervalued.
The current stock price of £0.29 is trading 20.1% below its estimated GF Value™ of £0.36.
GuruFocus considers Mercia Asset Management to be Modestly Undervalued.
Key valuation signals for LSE:MERC:
Beta: 0.8045
GF Value™: £0.36 vs. price of £0.29 (20.1% below fair value)
No single metric tells the full story. See the LSE:MERC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Mercia Asset Management PLC is a specialist asset manager focusing on supporting regional SMEs. The company provides capital across its four asset classes proprietary balance sheet capital, venture capital, private equity, and debt. The company initially nurtures businesses via its third-party funds under management and then, over time, provides further funding to the companies by deploying direct investment follow-on capital from its balance sheet. It has more than eight offices in the UK region, approx. 20 university partnerships and extensive personal networks, providing it with access to high-quality deal flow.
54GF Score
Get the complete analysis for LSE:MERC
Beta is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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