GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » Mercantile Bank Corp (NAS:MBWM) » Definitions » PE Ratio (TTM)

Mercantile Bank (Mercantile Bank) PE Ratio (TTM) : 7.12 (As of Apr. 26, 2024)


View and export this data going back to 1997. Start your Free Trial

What is Mercantile Bank PE Ratio (TTM)?

The PE Ratio (TTM), or Price-to-Earnings ratio, or P/E Ratio, is a financial ratio used to compare a company's market price to its Earnings per Share (Diluted). As of today (2024-04-26), Mercantile Bank's share price is $36.53. Mercantile Bank's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Dec. 2023 was $5.13. Therefore, Mercantile Bank's PE Ratio (TTM) for today is 7.12.


The historical rank and industry rank for Mercantile Bank's PE Ratio (TTM) or its related term are showing as below:

MBWM' s PE Ratio (TTM) Range Over the Past 10 Years
Min: 5.5   Med: 12.18   Max: 20.29
Current: 7.12


During the past 13 years, the highest PE Ratio (TTM) of Mercantile Bank was 20.29. The lowest was 5.50. And the median was 12.18.


MBWM's PE Ratio (TTM) is ranked better than
71.21% of 1386 companies
in the Banks industry
Industry Median: 9.42 vs MBWM: 7.12

Mercantile Bank's Earnings per Share (Diluted) for the three months ended in Dec. 2023 was $1.25. Its Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Dec. 2023 was $5.13.

As of today (2024-04-26), Mercantile Bank's share price is $36.53. Mercantile Bank's EPS without NRI for the trailing twelve months (TTM) ended in Dec. 2023 was $5.13. Therefore, Mercantile Bank's PE Ratio without NRI for today is 7.12.

During the past 13 years, Mercantile Bank's highest PE Ratio without NRI was 20.29. The lowest was 5.50. And the median was 11.71.

Mercantile Bank's EPS without NRI for the three months ended in Dec. 2023 was $1.27. Its EPS without NRI for the trailing twelve months (TTM) ended in Dec. 2023 was $5.13.

During the past 12 months, Mercantile Bank's average EPS without NRI Growth Rate was 33.20% per year. During the past 3 years, the average EPS without NRI Growth Rate was 23.70% per year. During the past 5 years, the average EPS without NRI Growth Rate was 13.90% per year. During the past 10 years, the average EPS without NRI Growth Rate was 11.30% per year.

During the past 13 years, Mercantile Bank's highest 3-Year average EPS without NRI Growth Rate was 23.80% per year. The lowest was -27.40% per year. And the median was 14.15% per year.

Mercantile Bank's EPS (Basic) for the three months ended in Dec. 2023 was $1.25. Its EPS (Basic) for the trailing twelve months (TTM) ended in Dec. 2023 was $5.13.


Mercantile Bank PE Ratio (TTM) Historical Data

The historical data trend for Mercantile Bank's PE Ratio (TTM) 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.

* Premium members only.

Mercantile Bank PE Ratio (TTM) Chart

Mercantile Bank Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
PE Ratio (TTM)
Get a 7-Day Free Trial Premium Member Only Premium Member Only 12.12 10.03 9.49 8.70 7.87

Mercantile Bank Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
PE Ratio (TTM) Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 8.70 6.90 5.57 5.89 7.87

Competitive Comparison of Mercantile Bank's PE Ratio (TTM)

For the Banks - Regional subindustry, Mercantile Bank's PE Ratio (TTM), along with its competitors' market caps and PE Ratio (TTM) 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.


Mercantile Bank's PE Ratio (TTM) Distribution in the Banks Industry

For the Banks industry and Financial Services sector, Mercantile Bank's PE Ratio (TTM) distribution charts can be found below:

* The bar in red indicates where Mercantile Bank's PE Ratio (TTM) falls into.



Mercantile Bank PE Ratio (TTM) Calculation

The PE Ratio (TTM), or Price-to-Earnings ratio, or P/E Ratio, is a financial ratio used to compare a company's market price to its Earnings per Share (Diluted). It is the most widely used ratio in the valuation of stocks.

Mercantile Bank's PE Ratio (TTM) for today is calculated as

PE Ratio (TTM)=Share Price/Earnings per Share (Diluted) (TTM)
=36.53/5.130
=7.12

Mercantile Bank's Share Price of today is $36.53.
Mercantile Bank's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $5.13.

* 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.

It can also be calculated from the numbers for the whole company:

PE Ratio (TTM)=Market Cap /Net Income

There are at least three kinds of PE Ratio (TTM)s used by different investors. They are Trailing Twelve Month PE Ratio (TTM) or PE Ratio (TTM) (TTM), Forward PE Ratio, or PE Ratio without NRI. A new PE Ratio (TTM) based on inflation-adjusted normalized PE Ratio (TTM) is called Shiller PE Ratio, after Yale professor Robert Shiller.

In the calculation of PE Ratio (TTM), the earnings per share used are the earnings per share over the past 12 months. For Forward PE Ratio, the earnings are the expected earnings for the next twelve months. In the case of PE Ratio without NRI, the reported earnings less the non-recurring items are used.

For Shiller PE Ratio, the earnings of the past 10 years are inflation-adjusted and averaged. Since it looks at the average over the last 10 years, Shiller PE Ratio is also called PE10.


Mercantile Bank  (NAS:MBWM) PE Ratio (TTM) Explanation

The PE Ratio (TTM) can be viewed as the number of years it takes for the company to earn back the price you pay for the stock. For example, if a company earns $2 a share per year, and the stock is traded at $30, the PE Ratio (TTM) is 15. Therefore it takes 15 years for the company to earn back the $30 you paid for its stock, assuming the earnings stays constant over the next 15 years.

In real business, earnings never stay constant. If a company can grow its earnings, it takes fewer years for the company to earn back the price you pay for the stock. If a company's earnings decline it takes more years. As a shareholder, you want the company to earn back the price you pay as soon as possible. Therefore, lower P/E stocks are more attractive than higher P/E stocks so long as the PE Ratio (TTM) is positive. Also for stocks with the same PE Ratio (TTM), the one with faster growth business is more attractive.

If a company loses money, the PE Ratio (TTM) becomes meaningless.

To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the PE Ratio (TTM) divided by the growth ratio. He thinks a company with a PE Ratio (TTM) equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a PE Ratio (TTM) of 20, instead of a company growing 10% a year with a PE Ratio (TTM) of 10.

Because the PE Ratio (TTM) measures how long it takes to earn back the price you pay, the PE Ratio (TTM) can be applied to the stocks across different industries. That is why it is the one of the most important and widely used indicators for the valuation of stocks.

Similar to the PE Ratio without NRI or PS Ratio or Price-to-Operating-Cash-Flow or Price-to-Free-Cash-Flow , the PE Ratio (TTM) measures the valuation based on the earning power of the company. This is where it is different from the PB Ratio , which measures the valuation based on the company's balance sheet.


Be Aware

Investors need to be aware that the PE Ratio (TTM) can be misleading a lot of times, especially when the underlying business is cyclical and unpredictable. As Peter Lynch pointed out, cyclical businesses have higher profit margins at the peaks of the business cycles. Their earnings are high and PE Ratio (TTM)s are artificially low. It is usually a bad idea to buy a cyclical business when the PE Ratio (TTM) is low. A better ratio to identify the time to buy a cyclical businesses is the PS Ratio .

PE Ratio (TTM) can also be affected by non-recurring-items 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 (TTM).


Mercantile Bank PE Ratio (TTM) Related Terms

Thank you for viewing the detailed overview of Mercantile Bank's PE Ratio (TTM) provided by GuruFocus.com. Please click on the following links to see related term pages.


Mercantile Bank (Mercantile Bank) Business Description

Traded in Other Exchanges
Address
310 Leonard Street NW, Grand Rapids, MI, USA, 49504
Mercantile Bank Corp operates as a bank holding company. The bank provides a variety of commercial banking services to individuals, businesses, governmental units, and other institutions. It provides banking services offering deposit products including checking, savings, and term certificate accounts, and lending products including commercial, residential mortgage, and installment loans. The company generates revenue from interest and dividends earned on loans, securities, and other financial instruments.
Executives
Amy L Sparks director C/O MERCANTILE BANK CORPORATION, 310 LEONARD ST., GRAND RAPIDS MI 49504
Michael H Price director, officer: President & COO MERCANTILE BANK CORP, 5650 BYRON CENTER SW, WYOMING MI 49509
David B Ramaker director 235 E. MAIN STREET, MIDLAND MI 48640
Robert T. Worthington officer: SENIOR V.P., GENERAL COUNSEL 310 LEONARD ST NW, GRAND RAPIDS MI 49504
Brett Hoover officer: SVP, Human Resources Director 310 LEONARD STREET NW, GRAND RAPIDS MI 49504
Lonna Wiersma officer: SVP, Human Resources Director C/O MERCANTILE BANK CORPORATION, 310 LEONARD ST., GRAND RAPIDS MI 49504
Michael S. Davenport director 310 LEONARD STREET NW, GRAND RAPIDS MI 49504
Michelle Larabee Eldridge director 259 E. MICHIGAN AVE., SUITE 105, KALAMAZOO MI 49007
Edward B Grant director
Thomas R Sullivan director, officer: CHAIRMAN OF THE BOARD
Edward J Clark director C/O AMERICAN SEATING CO, 401 AMERICAN SEATING CENTER N.W., GRAND RAPIDS MI 49504-4499
Raymond E. Reitsma director 310 LEONARD STREET NW, GRAND RAPIDS MI 49504
Jeff A Gardner director C/O FIRSTBANK CORPORATION, 311 WOODWORTH AVENUE, ALMA MI 48801
Samuel G Stone officer: EXECUTIVE VICE PRESIDENT
Robert B Kaminski officer: Senior VP & Secretary C/O MERCANTILE BANK CORP, 5650 BYRON CENTER AVENUE SW, WYOMING MI 49509