First MerchantsFRME +0.71%61 PEG Ratio is 2.61 as of Jun. 28, 2026, which is 33% above its 10-year median of 1.96. GuruFocus rates FRME with a GF Score™ of 61/100 and a GF Value™ of $39.83 (Fairly Valued). The stock has 8 warning signs investors should review. Among 1,231 Banks companies, First Merchants ranks worse than 68.89% on this metric.
PE Ratio without NRI / 5-Year Book Value Growth Rate*
* The 5-Year Book Value Growth Rate is the 5-year average Book Value per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
The historical rank and industry rank for First Merchants's PEG Ratio or its related term are showing as below:
FRME'
s PEG Ratio Range Over the Past 10 Years
Min: 0.65 Med: 1.96 Max: 72.15
Current: 2.61
During the past 13 years, First Merchants's highest PEG Ratio was 72.15. The lowest was 0.65. And the median was 1.96.
FRME's PEG Ratio is ranked worse than 68.89% of 1231
companies
in the Banks industry
Industry Median: 1.52
vs FRME: 2.61
Peter Lynch thinks a company with a P/E ratio equal to its growth rate is fairly valued.
First Merchants (NAS:FRME) PEG Ratio Explanation
To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the P/E ratio divided by the growth ratio. He thinks a company with a P/E ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a P/E of 20, instead of a company growing 10% a year with a P/E of 10.
First Merchants PEG Ratio Related Terms
First Merchants PEG Ratio Historical Data
* Premium members only.
The historical data trend for First Merchants's PEG 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.
For the Banks - Regional subindustry, First Merchants's PEG Ratio, along with its competitors' market caps and PEG 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 PEG Ratio vs Banks Industry
For the Banks industry and Financial Services sector, First Merchants's PEG Ratio distribution charts can be found below:
* The bar in red indicates where First Merchants's PEG Ratio falls into.
* 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.
* Note: The 5-Year Book Value Growth Rate is the 5-year average Book Value per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
First Merchants (FRME) has a PEG Ratio of 2.61 as of Jun. 28, 2026. Price-earnings to growth ratio is the ratio of price-earnings to a company's earnings growth rate. View historical data on First Merchants and its competitors. This is 33% above median its historical median of 1.96. Over the past decade, First Merchants' PEG Ratio has ranged from 0.65 to 72.15. According to the industry distribution chart, First Merchants ranks #848 out of 1231 companies in the Banks industry, placing it in the top 68.9%.
Is First Merchants' PEG Ratio too high?
First Merchants' current PEG Ratio of 2.61 is 33% above median its 10-year median of 1.96. Over the past 10 years, this metric has ranged from a low of 0.65 to a high of 72.15. The Banks industry median PEG Ratio is 1.52. First Merchants' value of 2.61 is 71.7% above this industry median. Based on the distribution chart, First Merchants ranks #848 out of 1231 companies in the Banks industry, which is below the industry midpoint. Overall, First Merchants has a GF Score™ of 61/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does First Merchants' PEG Ratio compare to CUBI and TRMK?
According to the Banks industry distribution chart, First Merchants ranks #848 out of 1231 companies for PEG Ratio. This places First Merchants in the lower half of its industry. The industry median PEG Ratio is 1.52. First Merchants' value of 2.61 is 71.7% above this benchmark. Historically, First Merchants' own PEG Ratio has ranged from 0.65 to 72.15 over the past decade. While the company's 10-year median is 1.96 vs. the industry median of 1.52, First Merchants has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good PEG Ratio for a Banks company?
The median PEG Ratio among Banks companies is 1.52, based on 1,231 companies in the industry. Companies in the top quartile (top 25%) have a PEG Ratio significantly above this median, while those in the bottom quartile fall well below. However, PEG Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. First Merchants's current PEG Ratio of 2.61 is 71.7% 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 PEG Ratio mean?
A high PEG Ratio can signal that a stock is expensive relative to its fundamentals. Price-earnings to growth ratio is the ratio of price-earnings to a company's earnings growth rate. View historical data on First Merchants and its competitors. For the Banks industry, the median PEG Ratio is 1.52 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. First Merchants's current PEG Ratio is 2.61, which is 33% above median its own 10-year median of 1.96. 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 $39.83, compared to a current price of $43.68 — trading 9.7% above its estimated fair value. The current PEG Ratio is 2.61, which is 33% above median its 10-year median of 1.96 and 71.7% above the Banks industry median of 1.52. First Merchants' overall GF Score™ is 61/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is PEG Ratio calculated?
PEG Ratio is calculated from a company's financial statements. For First Merchants (FRME), the current PEG Ratio is 2.61 as of Jun. 28, 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 $43.68 is trading 9.7% above its estimated GF Value™ of $39.83.
GuruFocus considers First Merchants to be Fairly Valued.
Key valuation signals for FRME:
PEG Ratio: 2.61 (33% above median its 10-year median of 1.96)
GF Value™: $39.83 vs. price of $43.68 (9.7% above fair value)
Industry Position: 71.7% above the Banks median (#848 of 1231)
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.
61GF Score
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