Latest revenue
$16.0M
as of 2026-03-31
Latest net income
$28.2M
as of 2026-03-31
Net margin
175.5%
as of 2026-03-31
Community sentiment
Where do you think FRME is heading?
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FRME vs S&P 500 · rebased to 100
Live market
delayed ≤15 min- Market cap
- $2.56B
- Enterprise value
- $4.11B
- P/E (trailing)
- 11.3×
- Forward P/E
- —
- P/B
- 0.96×
- Dividend yield
- 3.6%
- 52-wk high
- $43.21
- 52-wk low
- $34.66
- Beta
- —
- Shares out
- 63.0M
What this company does
ITEM 1. BUSINESS GENERAL First Merchants Corporation (the “Corporation”) is a financial holding company headquartered in Muncie, Indiana and was organized in September 1982. The Corporation’s common stock is traded on the Nasdaq Global Select Market System under the symbol FRME. The Corporation has one full-service bank charter, First Merchants Bank, which opened for business in Muncie, Indiana in March 1893. The Bank also operates First Merchants Private Wealth Advisors (a division of First Merchants Bank). The Bank includes 111 banking locations in Indiana, Ohio, and Michigan. In addition to its branch network, the Corporation offers comprehensive electronic and mobile delivery channels…
AI summary unavailable — showing raw filing excerpt
Generated from FRME's filing dated 2026-02-25
Key risks
ITEM 1A. RISK FACTORS RISK FACTORS There are a number of factors, including those specified below, that may adversely affect the Corporation’s business, financial results or stock price. Additional risks that the Corporation currently does not know about or currently views as immaterial may also impair the Corporation’s business or adversely impact its financial results or stock price. Operational Risks •The Corporation’s business, results of operations and financial condition may be adversely affected by epidemics, pandemics or other infectious disease outbreaks. An epidemic, a pandemic or any other infectious disease outbreak may result in a widespread health crisis that could adversely…
AI summary unavailable — showing raw filing excerpt
Generated from FRME's filing dated 2026-02-25
ActaClear Score
Computed from 5 years of SEC fundamentals + latest market data, ranked within National Commercial Banks (134 peers). 10 = best in industry, 5 = median, 0 = worst. Refreshed Jun 10, 2026.
Fair value · DCF
Methodology + caveats (click to expand)
Method. 10-year forecast of free cash flow, discounted at the company's WACC, with a Gordon-growth terminal at year 10. FCF is proxied by last fiscal-year net income (proper FCF needs CFO − CapEx by year, which we don't store yet). Beta defaults to 1.0 when not reported.
Why DCF is fragile. Treat the output as a thinking aid, not a verdict. Honest weaknesses of any DCF:
- Growth is the dominant assumption. No one can foresee 10 years of growth — small changes in the slider can double or halve fair value. The reverse-DCF readout above tells you what the market is implicitly assuming; ask yourself whether that's realistic before trusting either number.
- Terminal value dominates. In most DCFs, 60-80% of the answer comes from the terminal-value calculation — i.e., everything AFTER year 10. A 0.5pp change in terminal growth, or in WACC, can swing fair value by 20-30%.
- WACC is itself a guess. We use a textbook CAPM cost of equity (Rf 4.3%, MRP 5.5%, β from the quote) plus a 6% pretax cost of debt — none of these are the company's actual marginal financing cost.
- No moat / disruption modelling. The model assumes the company keeps earning whatever it earns today, compounding cleanly. Competitive shifts, regulatory action, and technology disruption can invalidate the forecast overnight.
- Net income ≠ free cash flow. For capex-heavy names (semis, telcos) net income overstates distributable cash. For low-capex names (software) it understates. Both reduce the precision of the FV figure.
- Reflexivity. A high stock price often becomes a self-fulfilling prophecy via better hiring, financing, and customer trust. DCF can't see this.
Take the DCF, the reverse-DCF implied growth, the historical multiples, and the community sentiment together. When they agree, conviction. When they disagree, the disagreement is the most informative thing on the page.
Historical multiples
How does FRME's current valuation compare to its own past?
P/E uses year-end weekly close ÷ (net income ÷ shares outstanding today). Held shares constant at today's count, which understates the per-share earnings improvement from buybacks over the period. PEG uses 5y revenue CAGR as a proxy for EPS growth — close, but not identical (margin expansion or dilution can drive a wedge). Best read as a comparator across companies and industries, not as a precise replica of historical multiples.