First Merchants PEG Ratio

First Merchants posts a PEG ratio of 61.57. That is above the Finance sector average of 25.31. Comparing that reading with peers and prior periods is usually more useful than looking at the number in isolation.

For Finance stocks, a PEG ratio near 25.31 is typical. First Merchants's 61.57 is higher that level. That is roughly 143.3% above the sector mean. Whether that is a warning or an opportunity depends on growth outlook and other fundamentals shown elsewhere on Stockcircle.

First Merchants's PEG ratio of 61.57 comes from dividing a price-based measure by a related financial statistic. Changes can come from the stock price moving, the underlying fundamental shifting, or both. Track both the level and the trend — a rising multiple on falling fundamentals is a different story than a rising multiple on rising earnings.

Context for FRME's PEG ratio usually means three checks: (1) trend versus prior periods, (2) level versus peers (average 25.31), and (3) consistency with growth and profitability. This page covers the first two; First Merchants's other metric pages and overview cover the third.

Judging First Merchants against Finance peers is usually better than using a market-wide rule of thumb. Business models inside Finance are more comparable, which makes gaps in PEG ratio easier to interpret. Start with 61.57 here, then scan peer and history charts to see if the gap is persistent.