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Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
Merlin Properties SOCIMI's Degree of Operating Leverage for the quarter that ended in Jun. 2026 was 2.08. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for Merlin Properties SOCIMI's Degree of Operating Leverage or its related term are showing as below:
MPTYY's Degree of Operating Leverage is ranked worse than 61.48% of 701
companies
in the REITs industry
Industry Median: 1.22
vs MPTYY: 2.08
Merlin Properties SOCIMI (OTCPK:MPTYY) Degree of Operating Leverage Explanation
Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.
A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.
Be Aware
The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.
Merlin Properties SOCIMI Degree of Operating Leverage Related Terms
Merlin Properties SOCIMI Degree of Operating Leverage Historical Data
* Premium members only.
The historical data trend for Merlin Properties SOCIMI's Degree of Operating Leverage can be seen below:
* 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.
Merlin Properties SOCIMI Degree of Operating Leverage Chart
MPTYY vs BXP, ARE, VNO: Degree of Operating Leverage Comparison
For the REIT - Office subindustry, Merlin Properties SOCIMI's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage 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.
Merlin Properties SOCIMI Degree of Operating Leverage vs REITs Industry
For the REITs industry and Real Estate sector, Merlin Properties SOCIMI's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where Merlin Properties SOCIMI's Degree of Operating Leverage falls into.
* 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.
** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
What does a Degree of Operating Leverage of 2.08 mean?
Merlin Properties SOCIMI (MPTYY) has a Degree of Operating Leverage of 2.08 as of Jun. 2026. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Merlin Properties SOCIMI and its competitors. According to the industry distribution chart, Merlin Properties SOCIMI ranks #431 out of 701 companies in the REITs industry, placing it in the top 61.5%.
Is Merlin Properties SOCIMI's Degree of Operating Leverage too high?
Merlin Properties SOCIMI's current Degree of Operating Leverage is 2.08. The REITs industry median Degree of Operating Leverage is 1.22. Merlin Properties SOCIMI's value of 2.08 is 70.5% above this industry median. Based on the distribution chart, Merlin Properties SOCIMI ranks #431 out of 701 companies in the REITs industry, which is below the industry midpoint. Overall, Merlin Properties SOCIMI has a GF Score™ of 60/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Merlin Properties SOCIMI's Degree of Operating Leverage compare to BXP and ARE?
According to the REITs industry distribution chart, Merlin Properties SOCIMI ranks #431 out of 701 companies for Degree of Operating Leverage. This places Merlin Properties SOCIMI in the lower half of its industry. The industry median Degree of Operating Leverage is 1.22. Merlin Properties SOCIMI's value of 2.08 is 70.5% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Degree of Operating Leverage for a REITs company?
The median Degree of Operating Leverage among REITs companies is 1.22, based on 701 companies in the industry. Companies in the top quartile (top 25%) have a Degree of Operating Leverage significantly above this median, while those in the bottom quartile fall well below. However, Degree of Operating Leverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Merlin Properties SOCIMI's current Degree of Operating Leverage of 2.08 is 70.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Degree of Operating Leverage mean?
A high Degree of Operating Leverage can signal that a stock is expensive relative to its fundamentals. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Merlin Properties SOCIMI and its competitors. For the REITs industry, the median Degree of Operating Leverage is 1.22 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Merlin Properties SOCIMI's current Degree of Operating Leverage is 2.08. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Merlin Properties SOCIMI stock overvalued right now?
Based on GuruFocus' analysis, Merlin Properties SOCIMI (MPTYY) is currently considered Modestly Overvalued. The stock's GF Value™ is $25.73, compared to a current price of $32.16 — trading 25% above its estimated fair value. The current Degree of Operating Leverage is 2.08 and 70.5% above the REITs industry median of 1.22. Merlin Properties SOCIMI's overall GF Score™ is 60/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Degree of Operating Leverage calculated?
Degree of Operating Leverage is calculated from a company's financial statements. For Merlin Properties SOCIMI (MPTYY), the current Degree of Operating Leverage is 2.08 as of Jun. 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 Merlin Properties SOCIMI (MPTYY) Overvalued in 2026?
Based on GuruFocus' analysis, Merlin Properties SOCIMI stock appears to be overvalued.
The current stock price of $32.16 is trading 25% above its estimated GF Value™ of $25.73.
GuruFocus considers Merlin Properties SOCIMI to be Modestly Overvalued.
Key valuation signals for MPTYY:
Degree of Operating Leverage: 2.08
GF Value™: $25.73 vs. price of $32.16 (25% above fair value)
Industry Position: 70.5% above the REITs median (#431 of 701)
No single metric tells the full story. See the MPTYY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Merlin Properties is Spain's largest listed SOCIMI/REIT, managing a EUR 12.6 billion portfolio across offices, logistics, shopping centers, and data centers. Over the coming years, it will bring 730 MW of data center capacity online, increasing its gross rental income contribution from just 6% in 2025 to 65% by 2032. Its total GRI will more than triple to EUR 1.8 billion, driven by this "Mega" plan. Additionally, it has a pipeline of 4.4 GW worth of land at varying stages of readiness it can develop.
60GF Score
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