MBWM Valuation

Mercantile Bank Corp

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46.290

0(0.000%)1D

Overview
Forecast
Valuation
Earnings

MBWM Relative Valuation

MBWM'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. If the market price exceeds this fair value range, MBWM is overvalued; if below, it's undervalued.

Historical Valuation

Mercantile Bank Corp (MBWM) is now in the Fair zone, suggesting that its current forward PE ratio of 8.69 is considered Fairly compared with the five-year average of 9.07. The fair price of Mercantile Bank Corp (MBWM) is between 42.04 to 57.23 according to relative valuation methord.

Relative Value

Fair Zone

42.04-57.23

Current Price：46.29

Fair

8.69

Trailing

Forward

0.00

EV/EBITDA

Mercantile Bank Corp. (MBWM) has a current EV/EBITDA of 0.00. The 5-year average EV/EBITDA is 0.00. The thresholds are as follows: Strongly Undervalued below 0.00, Undervalued between 0.00 and 0.00, Fairly Valued between 0.00 and 0.00, Overvalued between 0.00 and 0.00, and Strongly Overvalued above 0.00. The current Forward EV/EBITDA of 0.00 falls within the Strongly Undervalued range.

NaN

EV/EBIT

Mercantile Bank Corp. (MBWM) has a current EV/EBIT of NaN. The 5-year average EV/EBIT is NaN. The thresholds are as follows: Strongly Undervalued below NaN, Undervalued between NaN and NaN, Fairly Valued between NaN and NaN, Overvalued between NaN and NaN, and Strongly Overvalued above NaN. The current Forward EV/EBIT of NaN falls within the range.

2.94

Mercantile Bank Corp. (MBWM) has a current PS of 2.94. The 5-year average PS is 2.77. The thresholds are as follows: Strongly Undervalued below 2.05, Undervalued between 2.05 and 2.41, Fairly Valued between 3.13 and 2.41, Overvalued between 3.13 and 3.50, and Strongly Overvalued above 3.50. The current Forward PS of 2.94 falls within the Historic Trend Line -Fairly Valued range.

0.00

P/OCF

Mercantile Bank Corp. (MBWM) has a current P/OCF of 0.00. The 5-year average P/OCF is 0.00. The thresholds are as follows: Strongly Undervalued below 0.00, Undervalued between 0.00 and 0.00, Fairly Valued between 0.00 and 0.00, Overvalued between 0.00 and 0.00, and Strongly Overvalued above 0.00. The current Forward P/OCF of 0.00 falls within the Strongly Undervalued range.

0.00

P/FCF

Mercantile Bank Corp. (MBWM) has a current P/FCF of 0.00. The 5-year average P/FCF is 0.00. The thresholds are as follows: Strongly Undervalued below 0.00, Undervalued between 0.00 and 0.00, Fairly Valued between 0.00 and 0.00, Overvalued between 0.00 and 0.00, and Strongly Overvalued above 0.00. The current Forward P/FCF of 0.00 falls within the Strongly Undervalued range.

Mercantile Bank Corp (MBWM) has a current Price-to-Book (P/B) ratio of 1.19. Compared to its 3-year average P/B ratio of 1.19 , the current P/B ratio is approximately 0.39% higher. Relative to its 5-year average P/B ratio of 1.16, the current P/B ratio is about 2.63% higher. Mercantile Bank Corp (MBWM) has a Forward Free Cash Flow (FCF) yield of approximately 4.03%. Compared to its 3-year average FCF yield of 13.94%, the current FCF yield is approximately -71.07% lower. Relative to its 5-year average FCF yield of 12.24% , the current FCF yield is about -67.04% lower.

1.19

P/B

Median3y

1.19

Median5y

1.16

4.03

FCF Yield

Median3y

13.94

Median5y

12.24

Competitors Valuation Multiple

The average P/S ratio for MBWM's competitors is 2.82, providing a benchmark for relative valuation. Mercantile Bank Corp Corp (MBWM) exhibits a P/S ratio of 2.94, which is 4.33% above the industry average. Given its robust revenue growth of 6.97%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Central Pacific Financial Corp

Equity Bancshares Inc

Metropolitan Bank Holding Corp

Metrocity Bankshares Inc

3.79

3.61%

720.93M

Performance Decomposition

Market capitalization of MBWM increased by 2.23% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 37.10 to 41.76.

The secondary factor is the Revenue Growth, contributed 6.97%to the performance.

Overall, the performance of MBWM in the past 1 year is driven by Margin Expansion. Which is more sustainable.

6.97%

50.64M → 54.17M

Revenue Growth

12.56%

37.10 → 41.76

Margin Expansion

-17.30%

11.13 → 9.20

P/E Change

2.23%