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Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company. The details of how we calculate the intrinsic value of stocks are described in detail here.
As of today (2026-09-21), First Merchants's Intrinsic Value: Projected FCF is $74.74. The stock price of First Merchants is $40.855. Therefore, First Merchants's Price-to-Intrinsic-Value-Projected-FCF of today is 0.6.
The historical rank and industry rank for First Merchants's Intrinsic Value: Projected FCF or its related term are showing as below:
FRME'
s Price-to-Projected-FCF Range Over the Past 10 Years
Min: 0.41 Med: 0.64 Max: 1.08
Current: 0.55
During the past 13 years, the highest Price-to-Intrinsic-Value-Projected-FCF of First Merchants was 1.08. The lowest was 0.41. And the median was 0.64.
FRME's Price-to-Projected-FCF is ranked better than 56.62% of 1300
companies
in the Banks industry
Industry Median: 0.6
vs FRME: 0.55
First Merchants (NAS:FRME) Intrinsic Value: Projected FCF Explanation
The growth multiple is capped between 8.35 and 17.74.
Total Stockholders Equity weighting is more art than science and it should always be revisited in more detail when researching a company. Weightings from 0% to 100% to more than 100% are possible. 80% was chosen as a happy median after taking the above ideas into consideration.
First Merchants's Price-to-Intrinsic-Value-Projected-FCF for today is calculated as
Price-to-Intrinsic-Value-Projected-FCF
=
Share Price
/
Intrinsic Value: Projected FCF
=
40.855
/
74.155828477742
=
0.55
* 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 Intrinsic Value: Projected FCF Related Terms
First Merchants Intrinsic Value: Projected FCF Historical Data
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The historical data trend for First Merchants's Intrinsic Value: Projected FCF 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 Intrinsic Value: Projected FCF Chart
FRME vs BBT, FBNC, CUBI: Intrinsic Value: Projected FCF Comparison
For the Banks - Regional subindustry, First Merchants's Price-to-Projected-FCF, along with its competitors' market caps and Price-to-Projected-FCF 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 Price-to-Projected-FCF vs Banks Industry
For the Banks industry and Financial Services sector, First Merchants's Price-to-Projected-FCF distribution charts can be found below:
* The bar in red indicates where First Merchants's Price-to-Projected-FCF falls into.
First Merchants Intrinsic Value: Projected FCF Calculation
Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company.
The details of how we calculate the intrinsic value of stocks are described in detail here.
This method smooths out the free cash flow over the past 6-7 years, multiplies the results by a growth multiple, and adds a portion of Total Stockholders Equity.
* 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.
What does a Intrinsic Value: Projected FCF of $74.74 mean?
First Merchants (FRME) has a Intrinsic Value: Projected FCF of $74.74 as of Sep. 21, 2026. Intrinsic Value: Projected FCF is the stock value based on a projected free cash flow model. View historical data on First Merchants and its competitors. According to the industry distribution chart, First Merchants ranks #564 out of 1300 companies in the Banks industry, placing it in the top 43.4%.
Is First Merchants' Intrinsic Value: Projected FCF too high?
First Merchants' current Intrinsic Value: Projected FCF is $74.74. The Banks industry median Intrinsic Value: Projected FCF is 0.60. First Merchants' value of $74.74 is 12356.7% above this industry median. Based on the distribution chart, First Merchants ranks #564 out of 1300 companies in the Banks industry, which is above the industry midpoint. Overall, First Merchants has a GF Score™ of 64/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does First Merchants' Intrinsic Value: Projected FCF compare to BBT and FBNC?
According to the Banks industry distribution chart, First Merchants ranks #564 out of 1300 companies for Intrinsic Value: Projected FCF. This puts First Merchants in the upper half of its industry. The industry median Intrinsic Value: Projected FCF is 0.60. First Merchants' value of $74.74 is 12356.7% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Intrinsic Value: Projected FCF for a Banks company?
The median Intrinsic Value: Projected FCF among Banks companies is 0.60, based on 1,300 companies in the industry. Companies in the top quartile (top 25%) have a Intrinsic Value: Projected FCF significantly above this median, while those in the bottom quartile fall well below. However, Intrinsic Value: Projected FCF should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. First Merchants's current Intrinsic Value: Projected FCF of $74.74 is 12356.7% above 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 Intrinsic Value: Projected FCF mean?
A high Intrinsic Value: Projected FCF can signal that a stock is expensive relative to its fundamentals. Intrinsic Value: Projected FCF is the stock value based on a projected free cash flow model. View historical data on First Merchants and its competitors. For the Banks industry, the median Intrinsic Value: Projected FCF is 0.60 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. First Merchants's current Intrinsic Value: Projected FCF is $74.74. 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 $41.65, compared to a current price of $40.86 — trading 1.9% below its estimated fair value. The current Intrinsic Value: Projected FCF is $74.74 and 12356.7% above the Banks industry median of 0.60. First Merchants' overall GF Score™ is 64/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Intrinsic Value: Projected FCF calculated?
Intrinsic Value: Projected FCF is calculated from a company's financial statements. For First Merchants (FRME), the current Intrinsic Value: Projected FCF is $74.74 as of Sep. 21, 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 undervalued.
The current stock price of $40.86 is trading 1.9% below its estimated GF Value™ of $41.65.
GuruFocus considers First Merchants to be Fairly Valued.
Key valuation signals for FRME:
Intrinsic Value: Projected FCF: $74.74
GF Value™: $41.65 vs. price of $40.86 (1.9% below fair value)
Industry Position: 12356.7% above the Banks median (#564 of 1300)
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.
64GF Score
Get the complete analysis for FRME
Intrinsic Value: Projected FCF is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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