First Merchants Valuation
| FRME Stock | USD 40.81 0.08 0.20% |
At this time, the firm appears to be undervalued. First Merchants shows a prevailing Real Value of $46.37 per share. The current price of the firm is $40.81. Our model computes the value of First Merchants from reviewing the firm fundamentals such as Profit Margin of 0.35 %, shares outstanding of 63.05 M, and Current Valuation of 3.07 B as well as analyzing its technical indicators and probability of bankruptcy. Key fundamental drivers impacting First Merchants' valuation include:
Undervalued
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 40.81 | Real 46.37 | Target 45.75 | Hype 40.81 | Naive 41.27 |
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: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use First Merchants' intrinsic value based on its ongoing forecasts of First Merchants' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against First Merchants' closest peers. If more than one evaluation category is relevant for First Merchants we suggest using both methods to arrive at a better estimate.
First Merchants Cash |
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First Revenue by Product
First Merchants Total Value Analysis
First Merchants is currently expected to have valuation of 3.07 B with market capitalization of 2.57 B, debt of 1.16 B, and cash on hands of 299.12 M. Please note that valuation may be misleading and is a subject to auditing or accounting errors. We encourage investors to vigilantly validate all of the First Merchants fundamentals before making equity appraisal based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
3.07 B | 2.57 B | 1.16 B | 299.12 M |
First Merchants Investor Information
About 79.0% of the company shares are owned by institutional investors. The company has price-to-book (P/B) ratio of 0.93. Some equities with similar Price to Book (P/B) outperform the market in the long run. First Merchants has Price/Earnings To Growth (PEG) ratio of 2.68. The entity last dividend was issued on the 5th of December 2025. The firm had 105:100 split on the 27th of August 2003. Based on the key indicators related to First Merchants' liquidity, profitability, solvency, and operating efficiency, First Merchants may be sliding down financialy. It has an above-average probability of going through some form of financial hardship next quarter.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Operating Profit Margin | 0.18 | 0.2 |
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| Total Cash From Operating Activities | 321.4 M | 306.1 M |
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| Operating Income | 272.1 M | 259.1 M |
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First Merchants Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. First Merchants has an asset utilization ratio of 5.74 percent. This indicates that the Company is making $0.0574 for each dollar of assets. An increasing asset utilization means that First Merchants is more efficient with each dollar of assets it utilizes for everyday operations.First Merchants Profitability Analysis
Based on First Merchants' profitability indicators, First Merchants' profitability may be sliding down. It has an above-average probability of reporting lower numbers next quarter. Profitability indicators assess First Merchants' ability to earn profits and add value for shareholders.Net Income | First Reported 1987-03-31 | Previous Quarter 56.8 M | Current Value 57.1 M | Quarterly Volatility 18.7 M |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Gross Profit Margin | 0.53 | 0.5 |
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| Net Profit Margin | 0.14 | 0.2444 |
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| Operating Profit Margin | 0.18 | 0.2 |
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| Pretax Profit Margin | 0.19 | 0.2802 |
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| Return On Assets | 0.0114 | 0.0126 |
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| Return On Equity | 0.1 | 0.0874 |
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For First Merchants profitability analysis, we use financial ratios and fundamental drivers that measure the ability of First Merchants to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well First Merchants utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between First Merchants's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of First Merchants over time as well as its relative position and ranking within its peers.
First Merchants Earnings per Share Projection vs Actual
The next projected EPS of First Merchants is estimated to be 0.8667 with future projections ranging from a low of 0.94 to a high of 0.98. First Merchants' most recent 12-month trailing earnings per share (EPS TTM) is at 3.87. Please be aware that the consensus of earnings estimates for First Merchants is based on EPS before non-recurring items and includes expenses related to employee stock options.First Merchants Earnings Estimation Breakdown
The calculation of First Merchants' earning per share is based on the data from the past 12 consecutive months, used for reporting the company's financial figures. The next projected EPS of First Merchants is estimated to be 0.8667 with the future projection ranging from a low of 0.94 to a high of 0.98. Please be aware that this consensus of annual earnings estimates for First Merchants is based on EPS before non-recurring items and includes expenses related to employee stock options.Last Reported EPS
0.94 Lowest | Expected EPS | 0.98 Highest |
First Merchants Earnings Projection Consensus
Suppose the current estimates of First Merchants' value are higher than the current market price of the First Merchants stock. In this case, investors may conclude that First Merchants is overpriced and will exhibit bullish sentiment. On the other hand, if the present value is lower than the stock price, analysts may conclude that the market undervalues the equity. These scenarios may suggest that the market is not as efficient as it should be at the estimation time, and First Merchants' stock will quickly adjusts to the new information provided by the consensus estimate.
| Number of Analysts | Historical Accuracy | Last Reported EPS | Estimated EPS for 31st of March 2026 | Current EPS (TTM) | |
| 5 | 95.71% | 0.98 | 0.8667 | 3.87 |
First Merchants Ownership Allocation
First Merchants holds a total of 63.05 Million outstanding shares. The majority of First Merchants outstanding shares are owned by other corporate entities. These outside corporations are usually referred to as non-private investors looking to obtain positions in First Merchants to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in First Merchants. Please pay attention to any change in the institutional holdings of First Merchants as this could imply that something significant has changed or is about to change at the company. Please note that no matter how many assets the company secures, if the real value of the firm is less than the current market value, you may not be able to make money on it.First Merchants Profitability Analysis
The company reported the previous year's revenue of 1.05 B. Net Income was 201.4 M with profit before overhead, payroll, taxes, and interest of 641.7 M.First Merchants Past Distributions to stockholders
| 19th of December 2025 | ||
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| 21st of March 2025 | ||
| 20th of December 2024 | ||
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| 21st of June 2024 | ||
| 7th of June 2024 | ||
| 15th of March 2024 | ||
| 1st of March 2024 |
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates First Merchants' worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in First Merchants and how it compares across the competition.
About First Merchants Valuation
The stock valuation mechanism determines First Merchants' current worth on a weekly basis. Our valuation model uses a comparative analysis of First Merchants. We calculate exposure to First Merchants's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of First Merchants's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 640.2 M | 672.2 M | |
| Pretax Profit Margin | 0.28 | 0.19 | |
| Operating Profit Margin | 0.20 | 0.18 | |
| Net Profit Margin | 0.24 | 0.14 | |
| Gross Profit Margin | 0.50 | 0.53 |
First Merchants Quarterly Retained Earnings |
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A single share of First Merchants represents a small ownership stake in the entity. As a stockholder of First, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
First Merchants Dividends Analysis For Valuation
At present, First Merchants' Dividend Payout Ratio is projected to increase slightly based on the last few years of reporting. The current year's Dividend Paid And Capex Coverage Ratio is expected to grow to 3.48, whereas Dividend Yield is forecasted to decline to 0.04. . At present, First Merchants' Retained Earnings Total Equity is projected to increase significantly based on the last few years of reporting. The current year's Price Earnings Ratio is expected to grow to 10.63, whereas Earnings Yield is forecasted to decline to 0.08.
| Last Reported | Projected for Next Year | ||
| Dividends Paid | 96 M | 100.8 M | |
| Dividend Yield | 0.04 | 0.04 | |
| Dividend Payout Ratio | 0.37 | 0.43 | |
| Dividend Paid And Capex Coverage Ratio | 2.87 | 3.48 |
There are various types of dividends First Merchants can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of First shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from First Merchants directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When First pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of First Merchants by the value of the dividends paid out.
First Merchants Growth Indicators
Investing in growth stocks can be very risky. If the company such as First Merchants does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 57.7 M | |
| Quarterly Earnings Growth Y O Y | -0.1 | |
| Forward Price Earnings | 11.0742 |
First Merchants Current Valuation Indicators
Valuation refers to the process of determining the present value of First Merchants and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value First we look at many different elements of the entity such as First's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as First Merchants, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use First Merchants' valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes First Merchants' worth.Complementary Tools for First Stock analysis
When running First Merchants' price analysis, check to measure First Merchants' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy First Merchants is operating at the current time. Most of First Merchants' value examination focuses on studying past and present price action to predict the probability of First Merchants' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move First Merchants' price. Additionally, you may evaluate how the addition of First Merchants to your portfolios can decrease your overall portfolio volatility.
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