Mercury Systems, Inc. (MRCY) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-97.6%

$1.83

vs $77.37 price

Levered DCF

$14.26

After debt service

Piotroski score

4 / 9

Average

Altman Z-score

4.28

Safe zone

Rating

C-

Overall 1 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
P/E	-252.42×	-82.17×	-11.91×	-69.18×	-128.66×	58.65×	50.1×	70.33×
P/B	5.01×	2.13×	1.11×	1.25×	2.37×	2.46×	3.1×	2.57×
P/S	7.63×	3.44×	1.96×	2.01×	3.74×	3.95×	5.39×	5.03×
EV / EBITDA	83.07×	53.4×	-31.87×	33.31×	55.36×	23.38×	28.63×	24.17×
Gross margin	24.6%	27.9%	23.5%	32.5%	32.5%	41.7%	44.8%	43.7%
Operating margin	2.1%	-2.2%	-17.7%	-2.2%	-2.2%	8.8%	11.4%	11.7%
Net margin	-3.0%	-4.2%	-16.5%	-2.9%	-2.9%	6.7%	10.8%	7.1%
Current ratio	2.96×	3.52×	4.07×	4.02×	4.2×	4.26×	5.04×	5.94×
Debt / equity	0.33×	0.44×	0.44×	0.37×	0.34×	0.19×	0.05×	0×
Interest coverage	0.71×	-0.59×	-4.22×	-0.86×	-0.86×	66.29×	90.52×	8.41×
Dividend yield	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%
Payout ratio	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	-2.0%	-2.6%	-9.3%	-1.8%	-1.8%	4.2%	6.2%	3.6%
Return on invested capital	1.1%	-0.7%	-5.0%	-0.6%	-0.6%	3.6%	5.6%	4.6%
Return on assets	-1.3%	-1.6%	-5.8%	-1.2%	-1.2%	3.2%	5.3%	3.3%
Free cash flow yield	0.9%	3.8%	7.3%	1.3%	-1.7%	-1.3%	1.7%	2.1%
Earnings yield	-0.4%	-1.2%	-8.4%	-1.4%	-0.8%	1.7%	2.0%	1.4%
Enterprise value	$7.8B	$3.5B	$2.1B	$2.5B	$4.1B	$3.8B	$4.1B	$3B
Net debt / EBITDA	2.92×	5.15×	-7.15×	6.85×	6.16×	1.03×	-1.11×	-2.05×
Cash conversion cycle (days)	268	296	327	320	263	233	210	195