Melrose Industries (LSE:MRO) EV-to-EBIT: 12.79 (As of Jul. 26, 2026)

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LSE:MRO Melrose Industries PLC LSE:MRO
62 GF Score
Price £4.70
GF Value £6.55
Valuation Modestly Undervalued
! 6 Warning Signs
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What is Melrose Industries EV-to-EBIT?

Melrose Industries LSE:MRO -0.76% 62 EV-to-EBIT is 12.79 as of Jul. 26, 2026. GuruFocus rates LSE:MRO with a GF Score™ of 62/100 and a GF Value™ of £6.55 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 2,373 Industrial Products companies, Melrose Industries ranks better than 67.47% on this metric.

EV-to-EBIT is calculated as Enterprise Value divided by its EBIT. As of today, Melrose Industries's Enterprise Value is £7,599 Mil. Melrose Industries's EBIT for the trailing twelve months (TTM) ended in Dec. 2025 was £594 Mil. Therefore, Melrose Industries's EV-to-EBIT for today is 12.79.

The historical rank and industry rank for Melrose Industries's EV-to-EBIT or its related term are showing as below:

LSE:MRO' s EV-to-EBIT Range Over the Past 10 Years
Min: -2015.32   Med: -18.95   Max: 1734.57
Current: 12.79

During the past 13 years, the highest EV-to-EBIT of Melrose Industries was 1734.57. The lowest was -2015.32. And the median was -18.95.

LSE:MRO's EV-to-EBIT is ranked better than
67.47% of 2373 companies
in the Industrial Products industry
Industry Median: 18.99 vs LSE:MRO: 12.79

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt) %. Melrose Industries's Enterprise Value for the quarter that ended in Dec. 2025 was £9,139 Mil. Melrose Industries's EBIT for the trailing twelve months (TTM) ended in Dec. 2025 was £594 Mil. Melrose Industries's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Dec. 2025 was 6.50%.


Melrose Industries  (LSE:MRO) EV-to-EBIT Explanation

This is a more accurate valuation of companies' operation because it considers the debt and cash on its balance sheet, and non-operating items such as interest payment, tax, and one-time items are not included in the Operating Income.

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt) %.

Melrose Industries's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Dec. 2025 is calculated as:

Earnings Yield (Joel Greenblatt) % (Q: Dec. 2025 ) =EBIT / Enterprise Value (Q: Dec. 2025 )
=594/9139.183796
=6.50 %

Melrose Industries's Enterprise Value for the quarter that ended in Dec. 2025 was £9,139 Mil.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. Melrose Industries's EBIT for the trailing twelve months (TTM) ended in Dec. 2025 was £594 Mil.

* 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.


Melrose Industries EV-to-EBIT Related Terms


Melrose Industries EV-to-EBIT Historical Data

* Premium members only.

The historical data trend for Melrose Industries's EV-to-EBIT 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.

Melrose Industries EV-to-EBIT Chart

Melrose Industries Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
EV-to-EBIT
Get a 7-Day Free Trial Premium Member Only Premium Member Only -12.43 -21.27 173.45 -1,736.44 15.39

Melrose Industries Semi-Annual Data
Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
EV-to-EBIT Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 173.45 0.00 -1,736.44 0.00 15.39

LSE:MRO vs GEV, ETN, PH: EV-to-EBIT Comparison

For the Specialty Industrial Machinery subindustry, Melrose Industries's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT 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.


Melrose Industries EV-to-EBIT vs Industrial Products Industry

For the Industrial Products industry and Industrials sector, Melrose Industries's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where Melrose Industries's EV-to-EBIT falls into.


LSE:MRO
62GF Score
Melrose Industries PLC LSE:MRO
EV-to-EBIT is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Melrose Industries EV-to-EBIT Calculation

Melrose Industries's EV-to-EBIT for today is calculated as:

EV-to-EBIT=Enterprise Value (Today)/EBIT (TTM)
=7598.905/594
=12.79

Melrose Industries's current Enterprise Value is £7,599 Mil.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. Melrose Industries's EBIT for the trailing twelve months (TTM) ended in Dec. 2025 was £594 Mil.

* 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.

Frequently Asked Questions Learn more about EV-to-EBIT →
What does a EV-to-EBIT of 12.79 mean?
Melrose Industries (LSE:MRO) has a EV-to-EBIT of 12.79 as of Jul. 26, 2026. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Melrose Industries and its competitors. According to the industry distribution chart, Melrose Industries ranks #772 out of 2373 companies in the Industrial Products industry, placing it in the top 32.5%.
Is Melrose Industries' EV-to-EBIT too high?
Melrose Industries' current EV-to-EBIT is 12.79. The Industrial Products industry median EV-to-EBIT is 18.99. Melrose Industries' value of 12.79 is 32.6% below this industry median. Based on the distribution chart, Melrose Industries ranks #772 out of 2373 companies in the Industrial Products industry, which is above the industry midpoint. Overall, Melrose Industries has a GF Score™ of 62/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Melrose Industries' EV-to-EBIT compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Melrose Industries ranks #772 out of 2373 companies for EV-to-EBIT. This puts Melrose Industries in the upper half of its industry. The industry median EV-to-EBIT is 18.99. Melrose Industries' value of 12.79 is 32.6% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EV-to-EBIT for an Industrial Products company?
The median EV-to-EBIT among Industrial Products companies is 18.99, based on 2,373 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-EBIT significantly above this median, while those in the bottom quartile fall well below. However, EV-to-EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Melrose Industries's current EV-to-EBIT of 12.79 is 32.6% below 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 EV-to-EBIT mean?
A high EV-to-EBIT can signal that a stock is expensive relative to its fundamentals. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Melrose Industries and its competitors. For the Industrial Products industry, the median EV-to-EBIT is 18.99 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Melrose Industries's current EV-to-EBIT is 12.79. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Melrose Industries stock overvalued right now?
Based on GuruFocus' analysis, Melrose Industries (LSE:MRO) is currently considered Modestly Undervalued. The stock's GF Value™ is £6.55, compared to a current price of £4.70 — trading 28.2% below its estimated fair value. The current EV-to-EBIT is 12.79 and 32.6% below the Industrial Products industry median of 18.99. Melrose Industries' overall GF Score™ is 62/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-EBIT calculated?
EV-to-EBIT is calculated from a company's financial statements. For Melrose Industries (LSE:MRO), the current EV-to-EBIT is 12.79 as of Jul. 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 Melrose Industries (LSE:MRO) Overvalued in 2026?

Based on GuruFocus' analysis, Melrose Industries stock appears to be undervalued. The current stock price of £4.70 is trading 28.2% below its estimated GF Value™ of £6.55. GuruFocus considers Melrose Industries to be Modestly Undervalued.

Key valuation signals for LSE:MRO:

  • EV-to-EBIT: 12.79
  • GF Value™: £6.55 vs. price of £4.70 (28.2% below fair value)
  • GF Score™: 62/100 with 6 warning signs
  • Industry Position: 32.6% below the Industrial Products median (#772 of 2373)

No single metric tells the full story. See the LSE:MRO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Melrose Industries Business Description

Other Exchanges MLSPF:USAMROl:UK27M:Germany
Address 5 Stratton Street, Stratton House, 1st Floor, London, GBR, W1J 8LA
Melrose Industries is a UK-based company that manufactures engines and structures products for all major OEMs across civil and defense markets. The company employs 13,032 people and generates approximately 75% of its revenue from the civil market, manufacturing engines and structures for major OEMs in both civil and defense sectors.In the civil market, the company operates in 90% of existing fleets in service and is a demonstrator partner in the GTF and CFM RISE next-generation engines for narrow-body aircraft.
62GF Score

Get the complete analysis for LSE:MRO

EV-to-EBIT is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

£4.70
Price
£6.55
GF Value