First Merchants Stock Current Valuation
| FRME Stock | USD 44.03 0.63 1.45% |
Valuation analysis of First Merchants helps investors to measure First Merchants' intrinsic value by examining its available valuation indicators, including the cash flow records, the balance sheet account changes and income statement patterns. The current year's Enterprise Value Over EBITDA is expected to grow to 13.57. The current year's Enterprise Value Multiple is expected to grow to 13.57. Fundamental drivers impacting First Merchants' valuation include:
Price Book 1.1006 | Enterprise Value 3.2 B | Price Sales 4.2933 | Forward PE 12.1065 | Trailing PE 14.4186 |
Overvalued
Today
Please note that First Merchants' price fluctuation is very steady at this time. Calculation of the real value of First Merchants is based on 3 months time horizon. Increasing First Merchants' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the First stock is determined by what a typical buyer is willing to pay for full or partial control of First Merchants. Since First Merchants is currently traded on the exchange, buyers and sellers on that exchange determine the market value of First Stock. However, First Merchants' intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 44.03 | Real 37.33 | Target 36.33 | Hype 43.99 | Naive 42.69 |
The real value of First Stock, also known as its intrinsic value, is the underlying worth of First Merchants Company, which is reflected in its stock price. It is based on First Merchants' financial performance, growth prospects, management team, or industry conditions. The intrinsic value of First Merchants' stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, or news.
Estimating the potential upside or downside of First Merchants helps investors to forecast how First stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of First Merchants more accurately as focusing exclusively on First Merchants' fundamentals will not take into account other important factors: First Merchants Company Current Valuation Analysis
First Merchants' Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Current First Merchants Current Valuation | 3.17 B |
Most of First Merchants' fundamental indicators, such as Current Valuation, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, First Merchants is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
First Current Valuation Driver Correlations
Understanding the fundamental principles of building solid financial models for First Merchants is extremely important. It helps to project a fair market value of First Stock properly, considering its historical fundamentals such as Current Valuation. Since First Merchants' main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of First Merchants' historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of First Merchants' interrelated accounts and indicators.
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First Current Valuation Historical Pattern
Today, most investors in First Merchants Stock are looking for potential investment opportunities by analyzing not only static indicators but also various First Merchants' growth ratios. Consistent increases or drops in fundamental ratios usually indicate a possible pattern that can be successfully translated into profits. However, when comparing two companies, knowing each company's current valuation growth rates may not be enough to decide which company is a better investment. That's why investors frequently use a static breakdown of First Merchants current valuation as a starting point in their analysis.
First Merchants Current Valuation |
| Timeline |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
| Competition |
In accordance with the recently published financial statements, First Merchants has a Current Valuation of 3.17 B. This is 90.35% lower than that of the Banks sector and significantly higher than that of the Financials industry. The current valuation for all United States stocks is 80.94% higher than that of the company.
First Current Valuation Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses First Merchants' direct or indirect competition against its Current Valuation to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of First Merchants could also be used in its relative valuation, which is a method of valuing First Merchants by comparing valuation metrics of similar companies.First Merchants is currently under evaluation in current valuation category among its peers.
First Merchants Current Valuation Drivers
We derive many important indicators used in calculating different scores of First Merchants from analyzing First Merchants' financial statements. These drivers represent accounts that assess First Merchants' ability to generate profits relative to its revenue, operating costs, and shareholders' equity. Below are some of First Merchants' important valuation drivers and their relationship over time.
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Market Cap | 2.1B | 2.0B | 2.3B | 2.4B | 2.2B | 2.3B | |
| Enterprise Value | 2.3B | 1.9B | 2.1B | 3.1B | 3.0B | 3.1B |
First Merchants ESG Sustainability
Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, First Merchants' sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to First Merchants' managers, analysts, and investors.Environmental | Governance | Social |
First Fundamentals
| Return On Equity | 0.0817 | |||
| Return On Asset | 0.0099 | |||
| Profit Margin | 0.30 % | |||
| Operating Margin | 0.42 % | |||
| Current Valuation | 3.17 B | |||
| Shares Outstanding | 58.67 M | |||
| Shares Owned By Insiders | 1.56 % | |||
| Shares Owned By Institutions | 75.49 % | |||
| Number Of Shares Shorted | 469.91 K | |||
| Price To Earning | 14.38 X | |||
| Price To Book | 1.10 X | |||
| Price To Sales | 4.29 X | |||
| Revenue | 654.31 M | |||
| Gross Profit | 611.39 M | |||
| EBITDA | 270.94 M | |||
| Net Income | 223.79 M | |||
| Cash And Equivalents | 299.12 M | |||
| Cash Per Share | 5.06 X | |||
| Total Debt | 871.5 M | |||
| Debt To Equity | 6.95 % | |||
| Book Value Per Share | 39.18 X | |||
| Cash Flow From Operations | 258.83 M | |||
| Short Ratio | 1.74 X | |||
| Earnings Per Share | 3.01 X | |||
| Price To Earnings To Growth | 2.68 X | |||
| Target Price | 44.0 | |||
| Number Of Employees | 2.16 K | |||
| Beta | 1.02 | |||
| Market Capitalization | 2.55 B | |||
| Total Asset | 18.41 B | |||
| Retained Earnings | 1.15 B | |||
| Annual Yield | 0.03 % | |||
| Five Year Return | 2.58 % | |||
| Net Asset | 18.41 B | |||
| Last Dividend Paid | 1.38 |
About First Merchants Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze First Merchants's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of First Merchants using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of First Merchants based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Also Currently Popular
Analyzing currently trending equities could be an opportunity to develop a better portfolio based on different market momentums that they can trigger. Utilizing the top trending stocks is also useful when creating a market-neutral strategy or pair trading technique involving a short or a long position in a currently trending equity.When determining whether First Merchants is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if First Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about First Merchants Stock. Highlighted below are key reports to facilitate an investment decision about First Merchants Stock:Check out First Merchants Piotroski F Score and First Merchants Altman Z Score analysis. For information on how to trade First Stock refer to our How to Trade First Stock guide.You can also try the Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Is Regional Banks space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of First Merchants. If investors know First will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about First Merchants listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.11) | Dividend Share 1.38 | Earnings Share 3.01 | Revenue Per Share 10.11 | Quarterly Revenue Growth (0.05) |
The market value of First Merchants is measured differently than its book value, which is the value of First that is recorded on the company's balance sheet. Investors also form their own opinion of First Merchants' value that differs from its market value or its book value, called intrinsic value, which is First Merchants' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because First Merchants' market value can be influenced by many factors that don't directly affect First Merchants' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between First Merchants' value and its price as these two are different measures arrived at by different means. Investors typically determine if First Merchants is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, First Merchants' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.