Historical Valuation
First Merchants Corp (FRME) is now in the Undervalued zone, suggesting that its current forward PE ratio of 9.36 is considered Undervalued compared with the five-year average of 10.15. The fair price of First Merchants Corp (FRME) is between 39.07 to 47.91 according to relative valuation methord. Compared to the current price of 38.20 USD , First Merchants Corp is Undervalued By 2.21%.
Relative Value
Fair Zone
39.07-47.91
Current Price：38.20
2.21%
Undervalued
P/E
EV/EBITDA
EV/EBIT
P/S
P/OCF
P/FCF
1Y
3Y
5Y
Trailing
Forward
First Merchants Corp (FRME) has a current Price-to-Book (P/B) ratio of 0.90. Compared to its 3-year average P/B ratio of 0.95 , the current P/B ratio is approximately -5.03% higher. Relative to its 5-year average P/B ratio of 1.06, the current P/B ratio is about -15.51% higher. First Merchants Corp (FRME) has a Forward Free Cash Flow (FCF) yield of approximately 12.47%. Compared to its 3-year average FCF yield of 12.95%, the current FCF yield is approximately -3.68% lower. Relative to its 5-year average FCF yield of 11.22% , the current FCF yield is about 11.17% lower.
P/B
Median3y
0.95
Median5y
1.06
FCF Yield
Median3y
12.95
Median5y
11.22
Competitors Valuation Multiple
AI Analysis for FRME
The average P/S ratio for FRME competitors is 2.89, providing a benchmark for relative valuation. First Merchants Corp Corp (FRME.O) exhibits a P/S ratio of 2.88, which is -0.07% above the industry average. Given its robust revenue growth of 7.01%, this premium appears unsustainable.
Performance Decomposition
AI Analysis for FRME
1Y
3Y
5Y
Market capitalization of FRME increased by 0.00% over the past 1 year. The primary factor behind the change was an decrease in Unknown from 0.00 to 0.00.
The secondary factor is the Unknown, contributed 0.00%to the performance.
Overall, the performance of FRME in the past 1 year is driven by Unknown.
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Frequently Asked Questions
Is FRME currently overvalued or undervalued?
First Merchants Corp (FRME) is now in the Undervalued zone, suggesting that its current forward PE ratio of 9.36 is considered Undervalued compared with the five-year average of 10.15. The fair price of First Merchants Corp (FRME) is between 39.07 to 47.91 according to relative valuation methord. Compared to the current price of 38.20 USD , First Merchants Corp is Undervalued By 2.21% .
What is First Merchants Corp (FRME) fair value?
FRME's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average , adjusted by weights. The fair price of First Merchants Corp (FRME) is between 39.07 to 47.91 according to relative valuation methord.
How does FRME's valuation metrics compare to the industry average?
The average P/S ratio for FRME's competitors is 2.89, providing a benchmark for relative valuation. First Merchants Corp Corp (FRME) exhibits a P/S ratio of 2.88, which is -0.07% above the industry average. Given its robust revenue growth of 7.01%, this premium appears unsustainable.
What is the current P/B ratio for First Merchants Corp (FRME) as of Jan 09 2026?
As of Jan 09 2026, First Merchants Corp (FRME) has a P/B ratio of 0.90. This indicates that the market values FRME at 0.90 times its book value.
What is the current FCF Yield for First Merchants Corp (FRME) as of Jan 09 2026?
As of Jan 09 2026, First Merchants Corp (FRME) has a FCF Yield of 12.47%. This means that for every dollar of First Merchants Corp’s market capitalization, the company generates 12.47 cents in free cash flow.
What is the current Forward P/E ratio for First Merchants Corp (FRME) as of Jan 09 2026?
As of Jan 09 2026, First Merchants Corp (FRME) has a Forward P/E ratio of 9.36. This means the market is willing to pay $9.36 for every dollar of First Merchants Corp’s expected earnings over the next 12 months.
What is the current Forward P/S ratio for First Merchants Corp (FRME) as of Jan 09 2026?
As of Jan 09 2026, First Merchants Corp (FRME) has a Forward P/S ratio of 2.88. This means the market is valuing FRME at $2.88 for every dollar of expected revenue over the next 12 months.