Farmers Merchants Valuation
| FMAO Stock | USD 21.19 0.11 0.52% |
At this time, the firm appears to be fairly valued. Farmers Merchants Bancorp shows a prevailing Real Value of $21.66 per share. The current price of the firm is $21.19. Our model computes the value of Farmers Merchants Bancorp from reviewing the firm fundamentals such as Profit Margin of 0.24 %, current valuation of 467.5 M, and Shares Outstanding of 13.66 M as well as analyzing its technical indicators and probability of bankruptcy. In general, most investors advise obtaining undervalued instruments and abandoning overvalued instruments since, at some point, asset prices and their ongoing real values will submerge.
Price Book 0.8664 | Enterprise Value 467.5 M | Price Sales 2.8659 | Forward PE 13.3869 | Trailing PE 12.6228 |
Fairly Valued
Today
Please note that Farmers Merchants' price fluctuation is not too volatile at this time. Calculation of the real value of Farmers Merchants Bancorp is based on 3 months time horizon. Increasing Farmers Merchants' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Farmers Merchants Bancorp is useful when determining the fair value of the Farmers stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Farmers Merchants. Since Farmers Merchants is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Farmers Stock. However, Farmers Merchants' intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 21.19 | Real 21.66 | Target 22.0 | Hype 21.1 | Naive 20.58 |
The real value of Farmers Stock, also known as its intrinsic value, is the underlying worth of Farmers Merchants Bancorp Company, which is reflected in its stock price. It is based on Farmers Merchants' financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Farmers Merchants' stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Farmers Merchants' stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Farmers Merchants Bancorp helps investors to forecast how Farmers stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Farmers Merchants more accurately as focusing exclusively on Farmers Merchants' fundamentals will not take into account other important factors: Farmers Merchants Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining Farmers Merchants's current stock value. Our valuation model uses many indicators to compare Farmers Merchants value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Farmers Merchants competition to find correlations between indicators driving Farmers Merchants's intrinsic value. More Info.Farmers Merchants Bancorp is rated # 2 in price to earning category among related companies. It is one of the top stocks in price to book category among related companies fabricating about 0.06 of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for Farmers Merchants Bancorp is roughly 17.11 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Farmers Merchants by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Farmers Merchants' Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Farmers Merchants' earnings, one of the primary drivers of an investment's value.Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Farmers Merchants' worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Farmers Merchants and how it compares across the competition.
About Farmers Merchants Valuation
The stock valuation mechanism determines the current worth of Farmers Merchants Bancorp on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Farmers Merchants Bancorp. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Farmers Merchants Bancorp based exclusively on its fundamental and basic technical indicators. By analyzing Farmers Merchants's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Farmers Merchants's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Farmers Merchants. We calculate exposure to Farmers Merchants's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Farmers Merchants's related companies.Farmers Merchants Bancorp, Inc. operates as the bank holding company for The Farmers Merchants State Bank that provides commercial banking services to individuals and small businesses in northwest Ohio and northeast Indiana. Farmers Merchants Bancorp, Inc. was founded in 1897 and is headquartered in Archbold, Ohio. Farmers Merch operates under BanksRegional classification in the United States and is traded on NASDAQ Exchange. It employs 2 people.
Farmers Merchants Quarterly Retained Earnings |
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8 Steps to conduct Farmers Merchants' Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Farmers Merchants' potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Farmers Merchants' valuation analysis, follow these 8 steps:- Gather financial information: Obtain Farmers Merchants' financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Farmers Merchants' revenue streams: Identify Farmers Merchants' primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Farmers Merchants' industry and market trends, including the size of the market, growth rate, and competition.
- Establish Farmers Merchants' growth potential: Evaluate Farmers Merchants' management, business model, and growth potential.
- Determine Farmers Merchants' financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Farmers Merchants' estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
A single share of Farmers Merchants represents a small ownership stake in the entity. As a stockholder of Farmers, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
Farmers Merchants Dividends Analysis For Valuation
There are various types of dividends Farmers Merchants can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Farmers shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Farmers Merchants Bancorp directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Farmers pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Farmers Merchants by the value of the dividends paid out.
Farmers Merchants Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Farmers Merchants does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 13.5 M | |
| Quarterly Earnings Growth Y O Y | -0.227 | |
| Forward Price Earnings | 13.3869 |
Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Farmers Merchants Bancorp. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in nation. Note that the Farmers Merchants Bancorp information on this page should be used as a complementary analysis to other Farmers Merchants' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Complementary Tools for Farmers Stock analysis
When running Farmers Merchants' price analysis, check to measure Farmers Merchants' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Farmers Merchants is operating at the current time. Most of Farmers Merchants' value examination focuses on studying past and present price action to predict the probability of Farmers Merchants' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Farmers Merchants' price. Additionally, you may evaluate how the addition of Farmers Merchants to your portfolios can decrease your overall portfolio volatility.
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Is Farmers Merchants' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Farmers Merchants. If investors know Farmers will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Farmers Merchants listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.23) | Dividend Share 0.85 | Earnings Share 1.67 | Revenue Per Share 7.092 | Quarterly Revenue Growth (0.1) |
The market value of Farmers Merchants Bancorp is measured differently than its book value, which is the value of Farmers that is recorded on the company's balance sheet. Investors also form their own opinion of Farmers Merchants' value that differs from its market value or its book value, called intrinsic value, which is Farmers Merchants' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Farmers Merchants' market value can be influenced by many factors that don't directly affect Farmers Merchants' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Farmers Merchants' value and its price as these two are different measures arrived at by different means. Investors typically determine if Farmers Merchants is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Farmers Merchants' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.