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Melrose IndustriesLSE:MRO -2.79%62 EV-to-OCF is 26.99 as of Aug. 07, 2026, which is 11% above its 10-year median of 24.42. GuruFocus rates LSE:MRO with a GF Score™ of 62/100 and a GF Value™ of £6.51 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 3,075 Industrial Products companies, Melrose Industries ranks worse than 71.41% on this metric.
EV-to-OCF is calculated as enterprise value divided by its cash flow from operations. As of today, Melrose Industries's Enterprise Value is £7,799 Mil.
Melrose Industries's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2026 was £289 Mil. Therefore, Melrose Industries's EV-to-OCF for today is 26.99.
The historical rank and industry rank for Melrose Industries's EV-to-OCF or its related term are showing as below:
LSE:MRO'
s EV-to-OCF Range Over the Past 10 Years
Min: -83.28 Med: 24.42 Max: 352.79
Current: 27.58
During the past 13 years, the highest EV-to-OCF of Melrose Industries was 352.79. The lowest was -83.28. And the median was 24.42.
LSE:MRO's EV-to-OCF is ranked worse than 71.41% of 3075
companies
in the Industrial Products industry
Industry Median: 11.52
vs LSE:MRO: 27.58
EV-to-OCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
EV-to-OCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
Melrose Industries's PE Ratio (TTM) for today is calculated as:
Melrose Industries's share price for today is £4.772.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. Melrose Industries's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jun. 2026 was £0.128.
* 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.
Enterprise Value is used because it is a more complete measure in reflecting how much an investor pays when buying a company. Cash Flow from Operations is an important financial metric because it represents the cash generated from operating activities at a company's disposal. Companies with a low EV-to-OCF ratio, combined with a strong balance sheet are generally considered as undervalued.
Melrose Industries EV-to-OCF Related Terms
Melrose Industries EV-to-OCF Historical Data
* Premium members only.
The historical data trend for Melrose Industries's EV-to-OCF 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.
For the Specialty Industrial Machinery subindustry, Melrose Industries's EV-to-OCF, along with its competitors' market caps and EV-to-OCF 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-OCF vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Melrose Industries's EV-to-OCF distribution charts can be found below:
* The bar in red indicates where Melrose Industries's EV-to-OCF falls into.
Melrose Industries's current Enterprise Value is £7,799 Mil.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. Melrose Industries's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2026 was £289 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 (LSE:MRO) has a EV-to-OCF of 26.99 as of Aug. 07, 2026. This is 11% above median its historical median of 24.42. According to the industry distribution chart, Melrose Industries ranks #2196 out of 3075 companies in the Industrial Products industry, placing it in the top 71.4%.
Is Melrose Industries' EV-to-OCF too high?
Melrose Industries' current EV-to-OCF of 26.99 is 11% above median its 10-year median of 24.42. The Industrial Products industry median EV-to-OCF is 11.52. Melrose Industries' value of 26.99 is 134.3% above this industry median. Based on the distribution chart, Melrose Industries ranks #2196 out of 3075 companies in the Industrial Products industry, which is below 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-OCF compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Melrose Industries ranks #2196 out of 3075 companies for EV-to-OCF. This places Melrose Industries in the lower half of its industry. The industry median EV-to-OCF is 11.52. Melrose Industries' value of 26.99 is 134.3% above this benchmark. While the company's 10-year median is 24.42 vs. the industry median of 11.52, Melrose Industries has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EV-to-OCF for an Industrial Products company?
The median EV-to-OCF among Industrial Products companies is 11.52, based on 3,075 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-OCF significantly above this median, while those in the bottom quartile fall well below. However, EV-to-OCF should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Melrose Industries's current EV-to-OCF of 26.99 is 134.3% 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 EV-to-OCF mean?
A high EV-to-OCF can signal that a stock is expensive relative to its fundamentals. For the Industrial Products industry, the median EV-to-OCF is 11.52 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Melrose Industries's current EV-to-OCF is 26.99, which is 11% above median its own 10-year median of 24.42. 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 £6.51, compared to a current price of £4.77 — trading 26.7% below its estimated fair value. The current EV-to-OCF is 26.99, which is 11% above median its 10-year median of 24.42 and 134.3% above the Industrial Products industry median of 11.52. 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-OCF calculated?
EV-to-OCF is calculated from a company's financial statements. For Melrose Industries (LSE:MRO), the current EV-to-OCF is 26.99 as of Aug. 07, 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 £4.77 is trading 26.7% below its estimated GF Value™ of £6.51.
GuruFocus considers Melrose Industries to be Modestly Undervalued.
Key valuation signals for LSE:MRO:
EV-to-OCF: 26.99 (11% above median its 10-year median of 24.42)
GF Value™: £6.51 vs. price of £4.77 (26.7% below fair value)
Industry Position: 134.3% above the Industrial Products median (#2196 of 3075)
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 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
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