First Merchants Corporation (FRME) P/E Ratio History
Historical price-to-earnings valuation from 1990 to 2025
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FRME Valuation Context
How does the current P/E compare to historical and market benchmarks?
P/E Ratio Analysis
As of May 8, 2026, First Merchants Corporation (FRME) trades at a price-to-earnings ratio of 10.4x, with a stock price of $40.51 and trailing twelve-month earnings per share of $3.93.
The current P/E is roughly in line with its 5-year average of 10.5x. Over the past five years, FRME's P/E has ranged from a low of 6.5x to a high of 15.3x, placing the current valuation at the 40th percentile of its historical range.
Compared to the Financial Services sector median P/E of 13.1x, FRME trades at a 21% discount to its sector peers. The sector includes 775 companies with P/E ratios ranging from 0.0x to 195.8x.
The PEG ratio of 1.45 (P/E divided by 14% EPS growth) suggests a fair valuation relative to its earnings growth. Peter Lynch popularized the rule that a PEG below 1.0 indicates an attractive entry point.
Relative to the broader market, FRME trades at a notable discount to the S&P 500 median P/E of 25.1x. Investors should consider the company's growth prospects, competitive position, and earnings quality when evaluating whether the current valuation is justified.
For a comprehensive intrinsic value estimate using discounted cash flow analysis, see our FRME DCF Valuation Calculator →
Note: P/E ratio is just one valuation metric. It does not account for balance sheet strength, cash flow quality, or growth sustainability. Always conduct comprehensive due diligence before making investment decisions.
FRME P/E vs Peers
P/E ratio compared to closely matched public peers
| Company | Market Cap | P/E Ratio | PEG Ratio | EPS Growth (1Y) |
|---|---|---|---|---|
| $10B | 13.1 | 0.66 | +12% | |
| $699M | 10.4 | 1.97 | +3% | |
| $5B | 20.8 | 3.98 | +12% | |
| $898M | 9.5Lowest | 0.63Best | +11% | |
| $2B | 13.5 | 1.92 | +13% | |
| $4B | 10.3 | 0.74 | +32%Best | |
| $26B | 11.6 | 0.77 | +14% | |
| $9B | 13.5 | 2.39 | +7% | |
| $33B | 15.8 | - | -2% | |
| $8B | 12.9 | 1.14 | +5% |
Peers sorted by market capitalization. P/E below peers may indicate undervaluation or lower growth expectations. Consider PEG ratio for growth-adjusted comparison.
FRME Historical P/E Data (1990–2025)
Quarterly P/E ratios calculated from closing price and TTM EPS
| Quarter | Date | Price | TTM EPS | P/E Ratio | vs Avg |
|---|---|---|---|---|---|
| FY2025 Q4 | Wed Dec 31 2025 00:00:00 GM | $37.48 | $3.89 | 9.6x | -29% |
| FY2025 Q3 | $37.70 | $4.00 | 9.4x | -31% | |
| FY2025 Q2 | Mon Jun 30 2025 00:00:00 GM | $38.30 | $3.86 | 9.9x | -27% |
| FY2025 Q1 | Mon Mar 31 2025 00:00:00 GM | $40.44 | $3.56 | 11.4x | -16% |
| FY2024 Q4 | $39.89 | $3.42 | 11.7x | -14% | |
| FY2024 Q3 | Mon Sep 30 2024 00:00:00 GM | $37.20 | $3.03 | 12.3x | -10% |
| FY2024 Q2 | Sun Jun 30 2024 00:00:00 GM | $33.29 | $3.13 | 10.6x | -22% |
| FY2024 Q1 | Sun Mar 31 2024 00:00:00 GM | $34.90 | $3.47 | 10.1x | -26% |
| FY2023 Q4 | Sun Dec 31 2023 00:00:00 GM | $37.08 | $3.74 | 9.9x | -27% |
| FY2023 Q3 | Sat Sep 30 2023 00:00:00 GM | $27.82 | $4.21 | 6.6x | -51% |
| FY2023 Q2 | Fri Jun 30 2023 00:00:00 GM | $28.23 | $4.35 | 6.5x | -52% |
| FY2023 Q1 | Fri Mar 31 2023 00:00:00 GM | $32.95 | $3.96 | 8.3x | -39% |
Average P/E for displayed period: 13.6x
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Start ComparisonFRME — Frequently Asked Questions
Quick answers to the most common questions about buying FRME stock.
Is FRME stock overvalued or undervalued?
FRME trades at 10.4x P/E, near its 5-year average of 10.5x. The 40th percentile ranking places valuation within normal historical bounds.
How does FRME's valuation compare to peers?
First Merchants Corporation P/E of 10.4x compares to sector median of 13.1x. The discount suggests lower growth expectations or higher risk.
What is FRME's PEG ratio?
FRME PEG ratio is 1.45. Between 1-2 suggests valuation aligns with growth. Historical P/E data spans 1990-2025.