First Merchants (NAS:FRME) Forward PE Ratio Explanation
The Forward PE Ratio of a company is often used to compare current earnings to estimated future earnings, as well as gaining a clearer picture of what earnings will look like without charges and other accounting adjustments. If earnings are expected to grow in the future, the Forward PE Ratio will be lower than the current PE Ratio. This measure is also used to compare one company to another with a forward-looking focus.
Trailing PE Ratio relies on what is already done. It uses the current share price and divides by the total EPS (Basic) over the past 12 months. PE Ratio can be affected by Non Operating Income such as the sale of part of businesses. This may increase for the current year or quarter dramatically. But it cannot be repeated over and over. Therefore PE Ratio without NRI is a more accurate indication of valuation than PE Ratio .
First Merchants Forward PE Ratio Related Terms
First Merchants Forward PE Ratio Historical Data
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The historical data trend for First Merchants's Forward PE Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
First Merchants Forward PE Ratio Chart
First Merchants Annual Data
Trend
2015-12
2016-12
2017-12
2018-12
2019-12
2020-12
2021-12
2022-12
2023-12
2024-12
2025-12
Forward PE Ratio
13.51
18.35
15.24
9.92
12.58
15.77
11.57
8.65
10.94
11.32
9.37
First Merchants Quarterly Data
2015-12
2016-03
2016-06
2016-09
2016-12
2017-03
2017-06
2017-09
2017-12
2018-03
2018-06
2018-09
2018-12
2019-03
2019-06
2019-09
2019-12
2020-03
2020-06
2020-09
2020-12
2021-03
2021-06
2021-09
2021-12
2022-03
2022-06
2022-09
2022-12
2023-03
2023-06
2023-09
2023-12
2024-03
2024-06
2024-09
2024-12
2025-03
2025-06
2025-09
2025-12
2026-03
Forward PE Ratio
13.51
11.45
13.18
13.37
18.35
18.25
18.38
16.95
15.24
14.16
15.08
13.21
9.92
10.66
11.11
10.80
12.58
7.56
11.05
10.29
15.77
16.69
12.97
11.76
11.57
11.29
9.83
8.32
8.65
7.16
6.73
8.06
10.94
10.57
9.96
10.48
11.32
10.42
10.16
9.71
9.37
9.22
FRME vs CUBI, TRMK, WAFD: Forward PE Ratio Comparison
For the Banks - Regional subindustry, First Merchants's Forward PE Ratio, along with its competitors' market caps and Forward PE Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
First Merchants Forward PE Ratio vs Banks Industry
For the Banks industry and Financial Services sector, First Merchants's Forward PE Ratio distribution charts can be found below:
* The bar in red indicates where First Merchants's Forward PE Ratio falls into.
It's a measure of the price-to-earnings ratio (PE Ratio) using forecasted earnings for the calculation. While the earnings used are just an estimate and are not as reliable as current earnings data, there is still benefit in estimated P/E analysis. The forecasted earnings used in the formula can either be for the next 12 months or for the next full-year fiscal period.
First Merchants (FRME) has a Forward PE Ratio of 10.16 as of Jul. 10, 2026. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on First Merchants and its competitors. According to the industry distribution chart, First Merchants ranks #311 out of 816 companies in the Banks industry, placing it in the top 38.1%.
Is First Merchants' Forward PE Ratio too high?
First Merchants' current Forward PE Ratio is 10.16. The Banks industry median Forward PE Ratio is 11.00. First Merchants' value of 10.16 is 7.6% below this industry median. Based on the distribution chart, First Merchants ranks #311 out of 816 companies in the Banks industry, which is above the industry midpoint. Overall, First Merchants has a GF Score™ of 60/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does First Merchants' Forward PE Ratio compare to CUBI and TRMK?
According to the Banks industry distribution chart, First Merchants ranks #311 out of 816 companies for Forward PE Ratio. This puts First Merchants in the upper half of its industry. The industry median Forward PE Ratio is 11.00. First Merchants' value of 10.16 is 7.6% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Forward PE Ratio for a Banks company?
The median Forward PE Ratio among Banks companies is 11.00, based on 816 companies in the industry. Companies in the top quartile (top 25%) have a Forward PE Ratio significantly above this median, while those in the bottom quartile fall well below. However, Forward PE Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. First Merchants's current Forward PE Ratio of 10.16 is 7.6% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Forward PE Ratio mean?
A high Forward PE Ratio can signal that a stock is expensive relative to its fundamentals. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on First Merchants and its competitors. For the Banks industry, the median Forward PE Ratio is 11.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. First Merchants's current Forward PE Ratio is 10.16. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is First Merchants stock overvalued right now?
Based on GuruFocus' analysis, First Merchants (FRME) is currently considered Fairly Valued. The stock's GF Value™ is $40.17, compared to a current price of $43.12 — trading 7.3% above its estimated fair value. The current Forward PE Ratio is 10.16 and 7.6% below the Banks industry median of 11.00. First Merchants' overall GF Score™ is 60/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Forward PE Ratio calculated?
Forward PE Ratio is calculated from a company's financial statements. For First Merchants (FRME), the current Forward PE Ratio is 10.16 as of Jul. 10, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is First Merchants (FRME) Overvalued in 2026?
Based on GuruFocus' analysis, First Merchants stock appears to be overvalued.
The current stock price of $43.12 is trading 7.3% above its estimated GF Value™ of $40.17.
GuruFocus considers First Merchants to be Fairly Valued.
Key valuation signals for FRME:
Forward PE Ratio: 10.16
GF Value™: $40.17 vs. price of $43.12 (7.3% above fair value)
Industry Position: 7.6% below the Banks median (#311 of 816)
No single metric tells the full story. See the FRME stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
First Merchants Corp, through its subsidiaries, provides its customers with financial services delivered locally by bankers. It offers personal banking, business banking, real estate mortgage lending, cash management services, brokerage, wealth management, and insurance. The company reports in only one segment, which is community banking.
60GF Score
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