First Merchants Corporation Depository Shares (FRMEP) fair value: what the stock is really worth
As of Nov 6, 2026: fair value (intrinsic value) of First Merchants Corporation Depository Shares stock $23.87, price $24.92, that is 4.2% below the price, quality 51 out of 100. Rating: fairly valued. Calculated from audited financials with 6 of our 26 valuation models and 37 quality factors, updated daily.
69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 7, 2026.
How to read this chart
60‑month range $17.95 – $26.11 · fair‑value band $21.08 – $28.25 · the $24.92 price screens above the $23.87 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). 1 fiscal year is left out: there the valuation rested on only a fraction of the usual models. As of Nov 7, 2026.
Follow First Merchants Corporation Depository Shares in your weekly email
Every Wednesday you see whether First Merchants Corporation Depository Shares is on track or worth a review, plus price against fair value. Free, up to 3 stocks.
We send you a confirmation link. Unsubscribe with one click.
First Merchants Corporation operates as the financial holding company for First Merchants Bank that provides commercial and consumer banking services.
Show moreShow less
The company offers a range of financial services, including checking, savings, and deposit products; debit and credit cards; mortgages, refinance, construction or renovation of residential properties, agricultural lending, treasury management services and depository products.
It also provides personal and commercial wealth management services, brokerage, investment management, private banking, fiduciary estate, and financial planning services. The company operates banking locations in Indiana, Ohio, and Michigan counties.
It offers its services through electronic and mobile delivery channels. First Merchants Corporation was founded in 1893 and is headquartered in Muncie, Indiana.
Stock analysis
First Merchants Corporation Depository Shares (FRMEP) currently trades at $24.92, while our model-based Fair Value estimate is $23.87, so the stock looks roughly fairly valued today (gap 4.4%).
Show more
Valuation
Bull case: the Multiples group reads highest at a median of $27.68 per share, and 2 of the 6 models we run sit above the $24.92 price.
Bear case: the Asset-Based group reads lowest at $12.01, and 4 of the 6 models stay below the price. Data coverage for this calculation is high.
Scenario range: $21.08 (bear) to $28.25 (bull), the price of $24.92 sits inside it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 51/100 (solid quality), in the Financial Services sector.
Mixed Growth: Revenue is growing, but margins or cash flow do not fully confirm the trend.
First Merchants Corporation Depository Shares reported revenue of $1.1B in FY2025 versus $556M in FY2021, a compound +17.2%/yr. Reported net income was $226M in FY2025, compounding +2.4%/yr from FY2021.
Key figures
Market cap $2.4B Mid · P/E ratio 6.6 · P/S ratio 2.27 · EPS (TTM) $3.81 · Dividend yield 5.9% · Net margin 29.2% · Return on equity 7.8% · Return on assets (EBIT) 1.4% (5-year average).
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 62 out of 100 (low confidence).
What moves the price
The share trades about 5% below its 52-week high and 4% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Financial Services peers we cover trades at −28% fair-value upside, at −4%, FRMEP screens cheaper than that median.
Fair Value models
Bear$21.08Fair Value $23.87Bull$28.25
Price $24.92 · Downside -4.2%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2025 figures (about 10 months old). Earnings retained since then ($2.01 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
In the last 6 months, 2 officers or directors sold shares worth $1.0M and none bought.
SaleStephan FluhlerChief Information Officer2× since Feb 11, 2026: 8,241 shares, avg. $42.57$350,852Aug 19, 2026
SaleLarry W MyersDirector3× since Feb 26, 2026: 25,000 shares, avg. $41.70$1.0MJun 12, 2026
SaleEva D. ScurlockChief Risk Officer3,227 shares at $42.29$136,470Feb 6, 2026
Plus 31 other filings such as grants, option exercises or tax withholding. They are not market purchases or sales.
Sales are often planned (taxes, diversification, 10b5-1 plans). Purchases with their own money are seen as the stronger sign. For information only: not part of the quality score or Fair Value.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.88/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Revenue growth 1 year
−0.3%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+13.8%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+13.5%
Start year 2020 (pandemic). Over 10 years: +14.1% a year
Revenue growth 36 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+8.8%
’14
’15
’16
’17
’18
’19
’20
’21
’22
’23
’24
’25
What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate.
+10.1%
Earnings growth per share plus dividend.
Earnings per share, growth per year+4.2%
Dividend (yield on the price)5.9%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.4.2% vs 8.6%, slowing
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.30% → 25%
News mood ⓘNews mood, the average tone of recent news (91 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Hype
Recent news coverage is unusually upbeat, far more positive than stocks are typically covered.
AI conclusion: The regional bank demonstrates strength through recent net interest margin expansion and charge-off management yet remains limited by typical competitive pressures and commoditized operations without standout advantages.
Main risk: The CEO retirement and handover to the president risks renewed pressure on net interest margins and credit discipline if the incoming leader fails to sustain recent gains.
First Merchants expanded its net interest margin to the highest level in more than two years during the third quarter while managing elevated charge-offs. The bank also announced a leadership change with the CEO retiring at year end and the president taking over. Will the incoming leader sustain the margin gains and credit discipline or face renewed pressure in regional banking?
Compare First Merchants Corporation Depository Shares with another stock
Price, fair value, quality and upside side by side.
Free, no sign-up
Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Banks - Regional · 998 stocks
Beats the industry median on 8/14 measures
A mixed picture versus its industry peers.
Valuation
Quality Score51 · Below median
Fair Value upside−4.2% · Above median
Profitability
Return on equity (12 months)7.8% · Below median
Return on assets1.2% · Above median
Net margin (12 months)29.2% · Below median
Operating margin (12 months)45.0% · Above median
Growth and dividend
Revenue growth (quarter YoY)21.0% · Top 25%
Dividend yield (12 months)5.9% · Top 25%
Balance sheet
Debt / equity0.35× · Above median
Valuation Multiplesvs Banks - Regional median · lower = cheaper
P/E (12 months)6.6× · Cheapest 25%
P/B0.98× · Cheaper than median
P/S (12 months)3.58× · Pricier than median
Price / free cash flow (fiscal year)8.5× · Cheaper than median
EV/EBITDA11.1× · Pricier than median
Strength profile in five axes (Snowflake)
This stockSector peers
VALUE (fair-value potential)28· sector 8
FUTURE (revenue growth)100· sector 47
PAST (return on equity)31· sector 43
HEALTH (low debt)–
DIVIDEND (yield)100· sector 53
HEALTH: for banks, insurers and similar financial firms borrowed money is part of the business, so we do not rate debt here.
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Is First Merchants Corporation Depository Shares (FRMEP) overvalued or undervalued?
As of Nov 7, 2026, our model estimates a fair value of $23.87 versus a price of $24.92, about 4% lower (fairly valued).
What is the fair value of FRMEP?
Our model-based fair value for First Merchants Corporation Depository Shares is $23.87 (as of Nov 7, 2026), built from audited fundamentals. The current price: $24.92.
What is the quality score of FRMEP?
First Merchants Corporation Depository Shares has a Quality Score of 51/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for First Merchants Corporation Depository Shares (FRMEP)?
Our model-based price target is the fair value of $23.87 (as of Nov 7, 2026) from 6 valuation models. Cautious scenario $21.08, optimistic scenario $28.25. It is a calculation from audited fundamentals, not an analyst target.
What is the First Merchants Corporation Depository Shares stock forecast for 2026?
Our models put fair value at $23.87, about 4% lower versus a price of $24.92 (fairly valued). Cautious scenario $21.08, optimistic scenario $28.25. The calculation is refreshed regularly with new filings.
What is the revenue of First Merchants Corporation Depository Shares (FRMEP)?
First Merchants Corporation Depository Shares reported trailing-twelve-month revenue of about $676M (latest available figure, as of Nov 7, 2026).
Does First Merchants Corporation Depository Shares pay a dividend?
First Merchants Corporation Depository Shares currently shows a dividend yield of 5.86% relative to its recent price (as of Nov 7, 2026).
How much is the dividend of First Merchants Corporation Depository Shares (FRMEP) and when is the ex-dividend date?
First Merchants Corporation Depository Shares pays a dividend of $1.46 per share a year, a dividend yield of 5.9%. The last ex-dividend date was Oct 30, 2026. A dividend has been paid every year since at least 2020. The payout ratio is 38.3% of earnings. Our assessment: Low payout. A low payout ratio: the dividend takes at most 60 % of earnings. Whether free cash flow covers it as well, we cannot see for this company.
What is the intrinsic value of First Merchants Corporation Depository Shares (FRMEP)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For First Merchants Corporation Depository Shares it is $23.87 per share (as of Nov 7, 2026), against a price of $24.92. It is the blended result of 6 valuation models in 4 families (Dividend Discount, Multiples, Asset-Based, Economic Profit).
Is First Merchants Corporation Depository Shares stock overvalued or undervalued in 2026?
As of Nov 7, 2026, FRMEP trades above its calculated fair value: price $24.92, fair value $23.87, a gap of about −4% (fairly valued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of FRMEP?
No. The price is what the market pays today ($24.92); the fair value is what the company's own numbers justify ($23.87). For First Merchants Corporation Depository Shares the two are $1.05 per share apart. That gap is exactly why we show both numbers side by side.
How much is First Merchants Corporation Depository Shares worth?
The market values First Merchants Corporation Depository Shares at about $2.4B (market capitalisation, as of Nov 7, 2026). Per share that is $24.92; our models calculate a fair value of $23.87 per share.
What do the bullish and bearish scenarios say about FRMEP?
Our models span a range for First Merchants Corporation Depository Shares: cautious scenario $21.08, base $23.87, optimistic $28.25 per share (as of Nov 7, 2026, price $24.92). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of FRMEP?
First Merchants Corporation Depository Shares trades at a price-to-earnings ratio of 6.6 (as of Nov 7, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $23.87 is built from several models across several years. Median P/E at fiscal year-end, 6 fiscal years (2020 to 2025), reported earnings, FY2023, FY2024 ex one-offs: 6.9. Other multiples: P/B 1.0, P/S 3.6, EV/EBITDA 11.1.
How solid is the balance sheet of First Merchants Corporation Depository Shares (FRMEP)?
Balance-sheet figures for First Merchants Corporation Depository Shares (as of Nov 7, 2026): return on equity 7.8%, debt of 0.35 per unit of equity. They feed the Quality Score of 51/100, which measures business quality independently of the share price.
How far is FRMEP from its 52-week high?
First Merchants Corporation Depository Shares trades at $24.92, about 5% below its 52-week high of $26.11 and 4% above the low of $24.04 (as of Nov 6, 2026). Distance from the high says nothing about value: that is what the fair value of $23.87 is for.
Which stocks are comparable to First Merchants Corporation Depository Shares?
From the same area (Financial Services) we also value China Merchants Bank Co, DBS Group, UniCredit S.p.A, Mizuho Financial Group, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is First Merchants Corporation Depository Shares stock attractive at the current price?
The data as of Nov 7, 2026: price $24.92, calculated fair value $23.87 (−4%), Quality Score 51/100, from 6 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of FRMEP calculated?
We run First Merchants Corporation Depository Shares through 6 models from 4 families: Dividend Discount, Multiples, Asset-Based, Economic Profit. Every model gets the same audited fundamentals; the fair value of $23.87 builds on their evidence-weighted average, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 13.0% above its aggregate fair value. First Merchants Corporation Depository Shares itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of First Merchants Corporation Depository Shares (FRMEP)?
The closing price on Nov 6, 2026 was $24.92. Our model-based fair value is $23.87, about 4% lower (fairly valued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with First Merchants Corporation Depository Shares right now?
The price sits close to our fair value, market and models broadly agree here, little valuation tension. For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.
Where does the earnings growth of First Merchants Corporation Depository Shares (FRMEP) come from?
Earnings per share at First Merchants Corporation Depository Shares grew +8.4 % a year from 2014 to 2025. Broken into its drivers: revenue per share +9.9 %, EBIT margin −3.2 %, tax rate +1.9 %, residual (interest, one-offs) +0.0 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of First Merchants Corporation Depository Shares
How large is the market capitalisation of First Merchants Corporation Depository Shares (FRMEP)?
The market capitalisation of First Merchants Corporation Depository Shares is $2.4B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of First Merchants Corporation Depository Shares (FRMEP)?
The price-to-sales ratio of First Merchants Corporation Depository Shares is 2.27 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of First Merchants Corporation Depository Shares (FRMEP)?
Earnings per share at First Merchants Corporation Depository Shares are $3.81 (price ÷ EPS = P/E 6.6). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of First Merchants Corporation Depository Shares (FRMEP)?
The dividend yield of First Merchants Corporation Depository Shares is 5.9% (payout 38.3%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of First Merchants Corporation Depository Shares (FRMEP)?
The net margin of First Merchants Corporation Depository Shares is 29.2% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of First Merchants Corporation Depository Shares (FRMEP)?
The return on equity (ROE) of First Merchants Corporation Depository Shares is 7.8% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of First Merchants Corporation Depository Shares (FRMEP)?
On an EBIT basis the return on assets of First Merchants Corporation Depository Shares is 1.4% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of First Merchants Corporation Depository Shares (FRMEP)?
The operating margin of First Merchants Corporation Depository Shares is 45.0% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at First Merchants Corporation Depository Shares (FRMEP)?
Revenue at First Merchants Corporation Depository Shares is growing +21.0% versus a year earlier (3y avg +13.8%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at First Merchants Corporation Depository Shares (FRMEP)?
Earnings per share at First Merchants Corporation Depository Shares are growing +11.2% versus a year earlier. How much earnings per share grew versus a year earlier.
How much free cash flow does First Merchants Corporation Depository Shares (FRMEP) generate?
The free cash flow of First Merchants Corporation Depository Shares is $284M (fiscal year 2025). The cash truly left after running and investing in the business, this is what pays dividends and buybacks.
How much net debt does First Merchants Corporation Depository Shares (FRMEP) carry?
The net debt of First Merchants Corporation Depository Shares is $916M (fiscal year 2025, ≈ 3.2 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
Free · no account needed
Watch First Merchants Corporation Depository Shares in the live analysis
One click puts First Merchants Corporation Depository Shares on your watchlist: fair value and trend at a glance, plus comparison, the diversification check and the 27,000+ stock screener.
Broad data
Nov 7, 2026