Latest Ratios: P/E Ratio 11.3x · EV/EBITDA 12.7x · ROE 9.5%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $2.8B | $2.2B | $2.3B | $2.2B | $2.4B | $2.3B | $2.0B | $2.1B | $1.7B | $1.9B | $1.5B |
| Enterprise Value | $3.7B | $3.1B | $3.1B | $2.7B | $3.4B | $2.3B | $2.1B | $2.6B | $2.2B | $2.6B | $2.1B |
| P/E Ratio → | 11.26 | 9.66 | 11.70 | 9.94 | 10.79 | 10.99 | 13.65 | 13.04 | 10.64 | 19.84 | 19.02 |
| P/S Ratio | 2.62 | 2.06 | 2.22 | 2.21 | 3.34 | 4.07 | 3.63 | 3.88 | 3.50 | 4.95 | 4.85 |
| P/B Ratio | 1.02 | 0.88 | 1.01 | 0.98 | 1.17 | 1.18 | 1.08 | 1.20 | 1.20 | 1.47 | 1.71 |
| P/FCF | 9.71 | 7.63 | 8.77 | 8.52 | 8.38 | 10.50 | 9.90 | 12.13 | 9.41 | 15.10 | 14.89 |
| P/OCF | 9.71 | 7.63 | 8.77 | 8.52 | 8.38 | 10.50 | 9.90 | 12.02 | 9.41 | 15.10 | 14.89 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 2.93 | 2.95 | 2.69 | 4.84 | 4.05 | 3.81 | 4.68 | 4.52 | 6.62 | 6.55 |
| EV / EBITDA | 12.71 | 10.67 | 12.01 | 9.91 | 12.89 | 8.96 | 11.76 | 12.71 | 11.12 | 18.04 | 18.01 |
| EV / EBIT | 14.16 | 11.88 | 13.41 | 10.36 | 13.48 | 9.36 | 12.52 | 13.32 | 11.64 | 19.12 | 19.20 |
| EV / FCF | — | 10.86 | 11.67 | 10.38 | 12.13 | 10.47 | 10.39 | 14.61 | 12.15 | 20.19 | 20.11 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 61.0% | 61.0% | 56.1% | 64.8% | 85.8% | 93.5% | 77.6% | 79.8% | 84.2% | 87.9% | 89.8% |
| Operating Margin | 24.7% | 24.7% | 22.0% | 25.9% | 35.9% | 43.3% | 30.4% | 35.1% | 38.8% | 34.6% | 34.1% |
| Net Profit Margin | 21.5% | 21.5% | 19.1% | 22.4% | 31.2% | 37.0% | 26.6% | 29.8% | 32.9% | 24.9% | 25.4% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 9.5% | 9.5% | 8.8% | 10.5% | 11.3% | 10.9% | 8.1% | 10.3% | 11.7% | 8.7% | 9.3% |
| ROA | 1.2% | 1.2% | 1.1% | 1.2% | 1.3% | 1.4% | 1.1% | 1.5% | 1.7% | 1.2% | 1.2% |
| ROIC | 5.6% | 5.6% | 5.2% | 5.9% | 6.5% | 7.1% | 5.0% | 6.3% | 6.7% | 5.4% | 5.4% |
| ROCE | 3.5% | 3.5% | 6.7% | 7.8% | 8.9% | 9.5% | 6.9% | 9.1% | 9.9% | 8.1% | 8.2% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.41 | 0.41 | 0.50 | 0.46 | 0.65 | 0.33 | 0.37 | 0.41 | 0.48 | 0.64 | 0.77 |
| Debt / EBITDA | 3.47 | 3.47 | 4.48 | 3.80 | 4.91 | 2.52 | 3.78 | 3.61 | 3.41 | 5.89 | 5.99 |
| Net Debt / Equity | — | 0.37 | 0.33 | 0.21 | 0.52 | -0.00 | 0.05 | 0.24 | 0.35 | 0.49 | 0.60 |
| Net Debt / EBITDA | 3.17 | 3.17 | 2.98 | 1.77 | 3.98 | -0.03 | 0.55 | 2.15 | 2.51 | 4.55 | 4.68 |
| Debt / FCF | — | 3.23 | 2.90 | 1.85 | 3.75 | -0.03 | 0.49 | 2.47 | 2.75 | 5.09 | 5.22 |
| Interest Coverage | 0.67 | 0.67 | 0.54 | 0.74 | 3.01 | 6.70 | 2.56 | 1.78 | 2.72 | 3.55 | 4.05 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.20 | 0.20 | 0.13 | 0.15 | 0.16 | 0.24 | 0.22 | 0.21 | 0.17 | 0.16 | 0.15 |
| Quick Ratio | 0.20 | 0.20 | 0.13 | 0.15 | 0.16 | 0.24 | 0.22 | 0.21 | 0.17 | 0.16 | 0.15 |
| Cash Ratio | 0.01 | 0.01 | 0.03 | 0.04 | 0.02 | 0.05 | 0.05 | 0.03 | 0.02 | 0.03 | 0.03 |
| Asset Turnover | — | 0.06 | 0.06 | 0.05 | 0.04 | 0.04 | 0.04 | 0.04 | 0.05 | 0.04 | 0.04 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | — | — | — | — | — | — | — | — | — | — |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 3.3% | 3.8% | 3.5% | 3.6% | 3.1% | 2.7% | 2.8% | 2.4% | 2.5% | 1.7% | 1.4% |
| Payout Ratio | 36.7% | 36.7% | 40.5% | 35.8% | 32.8% | 29.8% | 38.0% | 31.2% | 26.2% | 33.1% | 27.4% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 8.9% | 10.4% | 8.5% | 10.1% | 9.3% | 9.1% | 7.3% | 7.7% | 9.4% | 5.0% | 5.3% |
| FCF Yield | 10.3% | 13.1% | 11.4% | 11.7% | 11.9% | 9.5% | 10.1% | 8.2% | 10.6% | 6.6% | 6.7% |
| Buyback Yield | 1.7% | 2.2% | 2.4% | 0.0% | 0.0% | 1.1% | 2.8% | 0.9% | 0.1% | 0.1% | 0.1% |
| Total Shareholder Yield | 5.0% | 6.0% | 5.9% | 3.6% | 3.1% | 3.8% | 5.5% | 3.3% | 2.6% | 1.7% | 1.6% |
| Shares Outstanding | — | $58M | $59M | $59M | $58M | $54M | $54M | $52M | $49M | $45M | $41M |
Regional economic concentration risk
According to current market data, First Merchants trades at a P/B of 1.02, suggesting that investors are pricing the bank as a commodity balance sheet rather than a premium franchise, likely due to its heavy geographic concentration in the Midwest and recent margin stagnation.
The current P/B multiple near book value implies that the market expects limited excess returns on tangible equity in the near term. This valuation gap relative to higher-multiple regional peers suggests that the market remains skeptical of the bank's ability to drive significant operating leverage through its recent acquisition-led growth strategy.
Based on the provided quarterly data, the bank's ROE has compressed to 1.1% in 2026Q1, a trend that appears driven by the persistent 0.7% NIM and rising efficiency ratios, indicating that the bank's core profitability is currently under significant pressure from elevated funding costs.
The decomposition of ROE highlights that the bank is struggling to translate asset growth into bottom-line returns. With the efficiency ratio deteriorating to 49.0% in the most recent quarter, it appears that the cost of maintaining the branch network and integrating recent acquisitions is currently outpacing the revenue generated from the loan portfolio.
As reported in financial statements, the bank's NIM has remained locked at 0.7% for ten consecutive quarters, which suggests that the bank is facing a structural inability to pass on higher funding costs to its commercial and agricultural borrower base in the current rate environment.
The lack of NIM expansion despite a volatile interest rate cycle warrants further investigation into the bank's deposit beta and asset repricing capabilities. The significant fluctuation in the efficiency ratio, reaching 49.0% in 2026Q1, indicates that operating leverage is currently negative, potentially signaling that the bank's fixed-cost structure is too rigid for the current revenue environment.
According to recent balance sheet filings, the equity-to-assets ratio has remained remarkably stable at 0.13, indicating that management is maintaining a consistent capital cushion to absorb potential volatility within their Midwest-focused commercial and agricultural loan portfolios despite the recent expansion of the balance sheet.
The consistency of the equity-to-assets ratio suggests a conservative approach to capital management, which provides a necessary buffer against regional economic shocks. Investors should monitor whether this capital adequacy is maintained as the bank continues to integrate larger acquisitions, which could potentially pressure capital ratios if organic growth slows.
The P/E ratio is the most commonly misapplied metric for First Merchants, as it obscures the impact of volatile provision expenses and acquisition-related accounting adjustments that frequently distort quarterly net income, making it a poor indicator of the bank's underlying earnings power.
Analysts should prioritize P/TBV and P/B multiples, as these provide a more accurate reflection of the bank's capital base and franchise value. Relying on P/E for a regional bank like First Merchants often leads to erroneous conclusions, as it fails to account for the cyclical nature of credit provisions and the non-cash amortization of intangibles that are inherent to their growth-by-acquisition model.
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying FRME stock.
First Merchants Corporation's current P/E ratio is 11.3x. The historical average is 14.9x. This places it at the 21th percentile of its historical range.
First Merchants Corporation's current EV/EBITDA is 12.7x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 15.5x.
First Merchants Corporation's return on equity (ROE) is 9.5%. The historical average is 9.2%.
Based on historical data, First Merchants Corporation is trading at a P/E of 11.3x. This is at the 21th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
First Merchants Corporation's current dividend yield is 3.29% with a payout ratio of 36.7%.
First Merchants Corporation has 61.0% gross margin and 24.7% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
First Merchants Corporation's Debt/EBITDA ratio is 3.5x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.