At this time, the firm appears to be fairly valued. First Merchants shows a prevailing Real Value of $25.17 per share. The current price of the firm is $25.36. Our model computes the value of First Merchants from reviewing the firm fundamentals such as Current Valuation of 2.32 B, profit margin of 0.33 %, and Shares Owned By Institutions of 100.00 % as well as analyzing its technical indicators and probability of bankruptcy. Key fundamental drivers impacting First Merchants' valuation include:
Enterprise Value
2.3 B
Trailing PE
6.6574
Fairly Valued
Today 25.36
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.
First Merchants' intrinsic value may or may not be the same as its current market price of 25.36, 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 25.36
Real 25.17
Hype 25.36
Naive 25.58
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, news, and other external factors that may influence First Merchants' 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.
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.
First Merchants Cash
163.16 Million
First Valuation Trend
First Merchants' real value is important for investors to make better decisions and a more accurate overall view of First Merchants' financial worth over time. Using both First Merchants' enterprise value as well as its market capitalization is the best way to gauge the value of the company and is usually enough for investors to make market timing conclusions.
First Revenue by Product
First Merchants Total Value Analysis
First Merchants is currently forecasted to have takeover price of 2.32 B with market capitalization of 2.32 B, debt of 916.08 M, and cash on hands of 299.12 M. Please note that takeover price may be misleading and is a subject to mistakes in financial statements. We encourage investors to thoroughly investigate all of the First Merchants fundamentals before making investing decisions based on enterprise value of the company
About 100.0% of the company shares are owned by institutional investors. The company last dividend was issued on the 31st of January 2025. Based on the key indicators related to First Merchants' liquidity, profitability, solvency, and operating efficiency, First Merchants is doing better financially today then in previous quarter. It has a moderate probability of reporting better financial numbers in April.
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 5.18 percent. This connotes that the Company is making $0.0518 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.
Oil Shock
Dot-com Bubble
Housing Crash
Credit Downgrade
Yuan Drop
Covid
First Merchants Profitability Analysis
The company reported the revenue of 948.01 M. Net Income was 201.4 M with profit before overhead, payroll, taxes, and interest of 610.99 M.
First Merchants Past Distributions to stockholders
The stock valuation mechanism determines First Merchants' current worth on a daily basis. In general, an absolute valuation approach attempts to find the value of First Merchants based exclusively on its fundamental and basic technical indicators. As compared to an absolute model, our relative 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.
First Merchants' stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether First Merchants' value is low or high relative to the company's performance and growth projections. Determining the market value of First Merchants can be done in different ways, such as multiplying its stock price by its outstanding shares.
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 this time, First Merchants' Dividends Paid is relatively stable compared to the past year. As of 03/19/2025, Dividend Payout Ratio is likely to grow to 0.43, while Dividend Yield is likely to drop 0.04. . As of 03/19/2025, Retained Earnings is likely to grow to about 1.3 B, while Earnings Yield is likely to drop 0.07.
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
58.5 M
Quarterly Earnings Growth Y O Y
0.571
First Merchants Current Valuation Indicators
First Merchants' 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 First Merchants' 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 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.
Additional 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.