Latest Ratios: P/E Ratio 10.3x · EV/EBITDA 11.9x · 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 | $2.5B | $2.2B | $2.3B | $2.2B | $2.4B | $2.3B | $2.0B | $2.1B | $1.7B | $1.9B | $1.5B |
| Enterprise Value | $3.4B | $3.1B | $3.1B | $2.7B | $3.4B | $2.3B | $2.1B | $2.6B | $2.2B | $2.6B | $2.1B |
| P/E Ratio → | 10.35 | 9.66 | 11.70 | 9.94 | 10.79 | 10.99 | 13.65 | 13.04 | 10.64 | 19.84 | 19.02 |
| P/S Ratio | 3.83 | 3.27 | 3.73 | 3.39 | 3.79 | 4.35 | 4.12 | 4.84 | 4.08 | 5.48 | 5.29 |
| P/B Ratio | 0.94 | 0.88 | 1.01 | 0.98 | 1.17 | 1.18 | 1.08 | 1.20 | 1.20 | 1.47 | 1.71 |
| P/FCF | 8.92 | 7.63 | 8.77 | 8.52 | 8.38 | 10.50 | 9.90 | 12.13 | 9.41 | 15.10 | 14.89 |
| P/OCF | 8.92 | 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 | — | 4.66 | 4.96 | 4.13 | 5.49 | 4.34 | 4.32 | 5.82 | 5.27 | 7.33 | 7.15 |
| EV / EBITDA | 11.94 | 10.67 | 12.01 | 9.91 | 12.89 | 8.96 | 11.76 | 12.71 | 11.12 | 18.04 | 18.01 |
| EV / EBIT | 13.30 | 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 | 3.6% | 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 | 9.7% | 10.4% | 8.5% | 10.1% | 9.3% | 9.1% | 7.3% | 7.7% | 9.4% | 5.0% | 5.3% |
| FCF Yield | 11.2% | 13.1% | 11.4% | 11.7% | 11.9% | 9.5% | 10.1% | 8.2% | 10.6% | 6.6% | 6.7% |
| Buyback Yield | 1.9% | 2.2% | 2.4% | 0.0% | 0.0% | 1.1% | 2.8% | 0.9% | 0.1% | 0.1% | 0.1% |
| Total Shareholder Yield | 5.4% | 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 |
Includes 30+ ratios · 30 years · Updated daily
Live VCP patterns, Cup & Handle overlays, support/resistance, and AI trade plans.
High-probability breakout stocks crossing their pivot across 5 pattern engines.
DCF models, multiple analysis, and analyst estimates.
10-year return with dividends reinvested.
Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying FRME stock.
First Merchants Corporation's current P/E ratio is 10.3x. The historical average is 14.9x. This places it at the 7th percentile of its historical range.
First Merchants Corporation's current EV/EBITDA is 11.9x. 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 10.3x. This is at the 7th 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 3.58% 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.
Key Metrics
Top Statement Risk
Credit quality and deposit costs
Metrics are mathematically derived from official filings.
Discount Pricing for a Regional Franchise
Trading at 0.98x tangible book and 10.8x trailing earnings, FRME's valuation implies the market assigns little premium to its wealth management diversification, according to recent market data.
The P/B of 0.98x sits below the peer median of approximately 1.4x, suggesting the market prices FRME as a commodity balance sheet rather than a franchise. The forward P/E of 12.96x is higher than trailing, indicating expected earnings normalization after the Q2 2026 miss. The dividend yield of 3.4% provides some support, but the valuation gap may reflect concerns about credit quality and deposit competition.
ROE Compression from Provision Spike
ROE fell to 1.6% in Q2 2026 from 2.4% in the prior quarter, as reported in financial statements, driven by a six-fold increase in provisions to $33.0M, which overshadowed stable NIM.
The DuPont decomposition shows that NIM has been flat at 0.7% for ten quarters, indicating that asset yields and funding costs are moving in lockstep. The efficiency ratio improved to 38.5% in Q2 from 49.0% in Q1, but the provision spike overwhelmed operating gains. Fee income volatility (12.5% of revenue in Q2 vs. 1.9% in Q1) adds instability to earnings quality.
Flat NIM Masks Funding Cost Pressure
Net interest margin has remained at 0.7% for ten consecutive quarters, according to reported figures, while rising deposit competition from digital-first banks may accelerate funding cost increases, potentially compressing margins.
The stability of NIM suggests that the bank has been able to reprice assets in line with funding costs, but the recent EPS miss and provision spike indicate that this balance may be fragile. The efficiency ratio improved to 38.5% in Q2, but the spike to 49.0% in Q1 highlights vulnerability to revenue dips. Investors should monitor deposit beta trends, as a faster-than-expected increase in funding costs could erode margins.
Thin Capital Buffer Limits Flexibility
Equity-to-assets ratio held at 0.13 in Q2 2026, unchanged from the prior quarter, as per balance sheet data, but the provision spike and EPS miss may indicate slowing capital generation.
The stable equity ratio suggests adequate capital, but the $33.0M provision in Q2 could reduce future capital accumulation. Tangible book value per share rose to $29.88, but the P/TBV of 1.40x (calculated from price and TBV) is below peers, implying the market sees limited upside. The bank's ability to return capital through dividends and buybacks appears intact, but the buffer may be thin if credit deterioration continues.
Provision Spike Signals Credit Stress
Loan loss provisions surged to $33.0M in Q2 2026, a six-fold increase from the prior quarter, as reported in the income statement, suggesting potential deterioration in commercial or agri-business portfolios.
The provision spike, combined with the EPS miss, indicates that credit quality may be weakening, possibly in the suburban office and retail CRE segments. Net charge-offs are undisclosed, but the reserve build suggests management expects higher losses. The bank's concentration in Midwest manufacturing and agriculture increases sensitivity to regional economic downturns, and investors should monitor NPL ratios in coming quarters.
P/E Misleads Due to Provision Volatility
The trailing P/E of 10.81x is distorted by the Q2 2026 provision spike, as reported in financial statements, making it appear cheap while obscuring underlying earnings power.
For banks, P/E can be misleading when provisions are volatile, as they are not a cash expense but reflect expected losses. A better metric is P/TBV or P/PPNR (pre-provision net revenue), which isolates operating performance. FRME's P/TBV of 1.40x is more informative, but even that may understate the impact of unrealized losses in the securities portfolio, which could pressure capital if realized.