First Merchants Stock Beta
| FRME Stock | USD 43.80 0.83 1.93% |
First Merchants fundamentals help investors to digest information that contributes to First Merchants' financial success or failures. It also enables traders to predict the movement of First Stock. The fundamental analysis module provides a way to measure First Merchants' intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to First Merchants stock.
First |
First Merchants Company Beta Analysis
First Merchants' Beta is one of the most important measures of equity market volatility. Beta can be thought of as asset elasticity or sensitivity to market. In other words, it is a number that shows the relationship of an equity instrument to the financial market in which this instrument is traded. For example, if Beta of equity is 2, it is expected to significantly outperform market when the market is going up and significantly underperform when the market is going down. Similarly, Beta of 1 indicates that an asset and market will generate similar returns over time.
Current First Merchants Beta | 1.08 |
Most of First Merchants' fundamental indicators, such as Beta, 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.
In a nutshell, Beta is a measure of individual stock risk relative to the overall volatility of the stock market. and is calculated based on very sound finance theory - Capital Assets Pricing Model (CAPM).However, since Beta is calculated based on historical price movements it may not predict how a firm's stock is going to perform in the future.
| Competition |
In accordance with the recently published financial statements, First Merchants has a Beta of 1.077. This is 31.34% higher than that of the Banks sector and significantly higher than that of the Financials industry. The beta for all United States stocks is notably lower than that of the firm.
First Beta 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 Beta 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 beta category among its peers.
First Merchants returns are very sensitive to returns on the market. As the market goes up or down, First Merchants is expected to follow.
First Fundamentals
| Return On Equity | 0.0885 | ||||
| Return On Asset | 0.011 | ||||
| Profit Margin | 0.33 % | ||||
| Operating Margin | 0.48 % | ||||
| Current Valuation | 3.34 B | ||||
| Shares Outstanding | 58.54 M | ||||
| Shares Owned By Insiders | 2.37 % | ||||
| Shares Owned By Institutions | 76.58 % | ||||
| Number Of Shares Shorted | 324.43 K | ||||
| Price To Earning | 14.38 X | ||||
| Price To Book | 1.10 X | ||||
| Price To Sales | 4.20 X | ||||
| Revenue | 948.01 M | ||||
| Gross Profit | 610.99 M | ||||
| EBITDA | 270.94 M | ||||
| Net Income | 201.4 M | ||||
| Cash And Equivalents | 299.12 M | ||||
| Cash Per Share | 5.06 X | ||||
| Total Debt | 916.08 M | ||||
| Debt To Equity | 6.95 % | ||||
| Book Value Per Share | 39.33 X | ||||
| Cash Flow From Operations | 266.21 M | ||||
| Short Ratio | 1.32 X | ||||
| Earnings Per Share | 3.41 X | ||||
| Price To Earnings To Growth | 2.68 X | ||||
| Target Price | 51.0 | ||||
| Number Of Employees | 2.12 K | ||||
| Beta | 1.08 | ||||
| Market Capitalization | 2.56 B | ||||
| Total Asset | 18.31 B | ||||
| Retained Earnings | 1.27 B | ||||
| Annual Yield | 0.03 % | ||||
| Five Year Return | 2.58 % | ||||
| Net Asset | 18.31 B | ||||
| Last Dividend Paid | 1.39 |
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.
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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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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.
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.