Merchants Bancorp Valuation

MBIN Stock  USD 42.27  0.49  1.15%   
At this time, the firm appears to be undervalued. Merchants Bancorp secures a last-minute Real Value of $47.11 per share. The latest price of the firm is $42.27. Our model forecasts the value of Merchants Bancorp from analyzing the firm fundamentals such as Current Valuation of 6.14 B, return on equity of 0.0967, and Profit Margin of 0.39 % as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Merchants Bancorp's valuation include:
Price Book
1.1158
Enterprise Value
6.1 B
Price Sales
3.4813
Trailing PE
11.1354
Enterprise Value Revenue
9.3352
Undervalued
Today
42.27
Please note that Merchants Bancorp's price fluctuation is very steady at this time. Calculation of the real value of Merchants Bancorp is based on 3 months time horizon. Increasing Merchants Bancorp's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since Merchants Bancorp is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Merchants Stock. However, Merchants Bancorp's 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  42.27 Real  47.11 Target  47.33 Hype  43.05 Naive  45.4
The intrinsic value of Merchants Bancorp's 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, news, and other external factors that may influence Merchants Bancorp's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
47.11
Real Value
49.92
Upside
Estimating the potential upside or downside of Merchants Bancorp helps investors to forecast how Merchants 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 Merchants Bancorp more accurately as focusing exclusively on Merchants Bancorp's fundamentals will not take into account other important factors:
Earnings
Estimates
LowProjectedHigh
1.241.271.29
Details
Hype
Prediction
LowEstimatedHigh
40.2443.0545.86
Details
Potential
Annual Dividend
LowForecastedHigh
0.280.280.29
Details
3 Analysts
Consensus
LowTarget PriceHigh
43.0747.3352.54
Details
Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Merchants Bancorp's intrinsic value based on its ongoing forecasts of Merchants Bancorp's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Merchants Bancorp's closest peers.

Merchants Bancorp Cash

505.43 Million

Merchants Bancorp Total Value Analysis

Merchants Bancorp is now forecasted to have valuation of 6.14 B with market capitalization of 1.96 B, debt of 4.34 B, and cash on hands of 472.79 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 Merchants Bancorp fundamentals before making equity appraisal based on enterprise value of the company
  Takeover PriceMarket CapDebt ObligationsCash
6.14 B
1.96 B
4.34 B
472.79 M

Merchants Bancorp Investor Information

About 44.0% of the company outstanding shares are owned by corporate insiders. The company has price-to-book ratio of 1.12. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. Merchants Bancorp last dividend was issued on the 15th of December 2025. The entity had 3:2 split on the 18th of January 2022. Based on the analysis of Merchants Bancorp's profitability, liquidity, and operating efficiency, Merchants Bancorp may be sliding down financialy. It has an above-average chance of going through some form of financial crunch next quarter.
Current ValueLast YearChange From Last Year 10 Year Trend
Operating Profit Margin0.180.1932
Significantly Down
Slightly volatile
Operating Income223.9 M263.8 M
Fairly Down
Slightly volatile

Merchants Bancorp Asset Utilization

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Merchants Bancorp has an asset utilization ratio of 7.26 percent. This suggests that the Company is making $0.0726 for each dollar of assets. An increasing asset utilization means that Merchants Bancorp is more efficient with each dollar of assets it utilizes for everyday operations.
 
Yuan Drop
 
Covid
 
Interest Hikes

Merchants Bancorp Profitability Analysis

Considering Merchants Bancorp's profitability and operating efficiency indicators, Merchants Bancorp's profitability may be sliding down. It has an above-average chance of reporting lower numbers next quarter. Profitability indicators assess Merchants Bancorp's ability to earn profits and add value for shareholders.
 
Net Income  
First Reported
2015-12-31
Previous Quarter
54.7 M
Current Value
67.8 M
Quarterly Volatility
25.8 M
 
Yuan Drop
 
Covid
 
Interest Hikes
As of the 5th of February 2026, Gross Profit Margin is likely to grow to 0.75, while Gross Profit is likely to drop about 344.3 M.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.750.4129
Way Up
Slightly volatile
Net Profit Margin0.150.1602
Notably Down
Slightly volatile
Operating Profit Margin0.180.1932
Significantly Down
Slightly volatile
Pretax Profit Margin0.180.1932
Significantly Down
Slightly volatile
Return On Assets0.01240.0112
Significantly Up
Slightly volatile
Return On Equity0.180.0959
Way Up
Slightly volatile
For Merchants Bancorp profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Merchants Bancorp to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Merchants Bancorp utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Merchants Bancorp's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Merchants Bancorp over time as well as its relative position and ranking within its peers.

Merchants Bancorp Earnings per Share Projection vs Actual

The next projected EPS of Merchants Bancorp is estimated to be 1.27 with future projections ranging from a low of 1.24 to a high of 1.29. Merchants Bancorp's most recent 12-month trailing earnings per share (EPS TTM) is at 3.84. Please be aware that the consensus of earnings estimates for Merchants Bancorp is based on EPS before non-recurring items and includes expenses related to employee stock options.
 
Covid
 
Interest Hikes
Merchants Bancorp is projected to generate 1.27 in earnings per share on the 30th of June 2026. Merchants Bancorp earnings estimates show analyst consensus about projected Merchants Bancorp EPS (Earning Per Share). It derives the highest and the lowest estimates based on Merchants Bancorp's historical volatility. Many public companies, such as Merchants Bancorp, manage the perception of their earnings on a regular basis to make sure that analyst estimates are accurate. Future earnings calculations are also an essential input when attempting to value a firm.

Merchants Bancorp Earnings Estimation Breakdown

The calculation of Merchants Bancorp's 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 Merchants Bancorp is estimated to be 1.27 with the future projection ranging from a low of 1.24 to a high of 1.29. Please be aware that this consensus of annual earnings estimates for Merchants Bancorp is based on EPS before non-recurring items and includes expenses related to employee stock options.
Last Reported EPS
0.0
1.24
Lowest
Expected EPS
1.27
1.29
Highest

Merchants Bancorp Earnings Projection Consensus

Suppose the current estimates of Merchants Bancorp's value are higher than the current market price of the Merchants Bancorp stock. In this case, investors may conclude that Merchants Bancorp 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 Merchants Bancorp's stock will quickly adjusts to the new information provided by the consensus estimate.
Number of AnalystsHistorical AccuracyLast Reported EPSEstimated EPS for 30th of June 2026Current EPS (TTM)
376.0%
0.0
1.27
3.84

Merchants Bancorp Ownership Allocation

Merchants Bancorp maintains a total of 45.89 Million outstanding shares. Merchants Bancorp holds significant amount of outstanding shares owned by insiders. An insider is usually defined as a CEO, other corporate executive, director, or institutional investor who own at least 10% of the company's outstanding shares. Please note that no matter how many assets the company has, if the real value of the firm is less than the current market value, you may not be able to make money on it.

Merchants Bancorp Profitability Analysis

The company reported the previous year's revenue of 1.37 B. Net Income was 320.39 M with profit before overhead, payroll, taxes, and interest of 563.69 M.

Merchants Bancorp Past Distributions to stockholders

About Merchants Bancorp Valuation

We use absolute and relative valuation methodologies to arrive at the intrinsic value of Merchants Bancorp. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Merchants Bancorp based exclusively on its fundamental and basic technical indicators. By analyzing Merchants Bancorp's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of Merchants Bancorp's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of Merchants Bancorp. We calculate exposure to Merchants Bancorp's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Merchants Bancorp's related companies.
Last ReportedProjected for Next Year
Gross Profit563.7 M344.3 M
Pretax Profit Margin 0.19  0.18 
Operating Profit Margin 0.19  0.18 
Net Profit Margin 0.16  0.15 
Gross Profit Margin 0.41  0.75 

Merchants Bancorp Quarterly Retained Earnings

1.49 Billion

Merchants Bancorp's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Merchants Bancorp's value is low or high relative to the company's performance and growth projections. Determining the market value of Merchants Bancorp can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of Merchants Bancorp represents a small ownership stake in the entity. As a stockholder of Merchants, 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.

Merchants Bancorp Dividends Analysis For Valuation

At this time, Merchants Bancorp's Dividends Paid is very stable compared to the past year. As of the 5th of February 2026, Dividend Yield is likely to grow to 0.02, while Dividend Payout Ratio is likely to drop 0.08. . At this time, Merchants Bancorp's Retained Earnings are very stable compared to the past year. As of the 5th of February 2026, Retained Earnings Total Equity is likely to grow to about 1 B, while Earning Assets are likely to drop about 2.2 B.
Last ReportedProjected for Next Year
Dividends Paid58.8 M61.8 M
Dividend Yield 0.01  0.02 
Dividend Payout Ratio 0.08  0.08 
Dividend Paid And Capex Coverage Ratio(13.81)(14.50)
There are various types of dividends Merchants Bancorp 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 Merchants 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 Merchants Bancorp directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Merchants pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Merchants Bancorp by the value of the dividends paid out.

Merchants Bancorp Growth Indicators

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines.
Common Stock Shares Outstanding45.9 M
Quarterly Earnings Growth Y O Y-0.305

Merchants Bancorp Current Valuation Indicators

Merchants Bancorp's valuation analysis is a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Merchants Bancorp's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Merchants Bancorp, 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 Merchants Bancorp's 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 Merchants Bancorp's worth.
When determining whether Merchants Bancorp is a strong investment it is important to analyze Merchants Bancorp's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Merchants Bancorp's future performance. For an informed investment choice regarding Merchants Stock, refer to the following important reports:
Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Merchants Bancorp. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in gross domestic product.
To learn how to invest in Merchants Stock, please use our How to Invest in Merchants Bancorp guide.
You can also try the Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Will Commercial & Residential Mortgage Finance sector continue expanding? Could Merchants diversify its offerings? Factors like these will boost the valuation of Merchants Bancorp. Expected growth trajectory for Merchants significantly influences the price investors are willing to assign. Accurate valuation requires analyzing both current fundamentals and future growth trajectories. Every Merchants Bancorp data point contributes insight, yet successful analysis hinges on identifying the most consequential variables.
Quarterly Earnings Growth
(0.30)
Dividend Share
0.4
Earnings Share
3.84
Revenue Per Share
12.288
Quarterly Revenue Growth
(0.18)
Merchants Bancorp's market price often diverges from its book value, the accounting figure shown on Merchants's balance sheet. Smart investors calculate Merchants Bancorp's intrinsic value - its true economic worth - which may differ significantly from both market price and book value. Seasoned market participants apply comprehensive analytical frameworks to derive fundamental worth and identify mispriced opportunities. Since Merchants Bancorp's trading price responds to investor sentiment, macroeconomic conditions, and market psychology, it can swing far from fundamental value.
Understanding that Merchants Bancorp's value differs from its trading price is crucial, as each reflects different aspects of the company. Evaluating whether Merchants Bancorp represents a sound investment requires analyzing earnings trends, revenue growth, technical signals, industry dynamics, and expert forecasts. However, Merchants Bancorp's 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.