Is First Merchants Corp. (Indiana) overvalued or undervalued?

As of 4 January 2024, the valuation grade for First Merchants Corp. (Indiana) has moved from very attractive to fair. The company appears to be fairly valued based on its current metrics. The P/E ratio stands at 10, which is lower than peers such as UMB Financial Corp. at 19.78 and First Financial Bankshares, Inc. at 21.84. Additionally, the Price to Book Value is 0.92, and the Dividend Yield is notably high at 5.08%.
In comparison to its peers, First Merchants Corp. shows a PEG ratio of 3.68, indicating potential growth concerns relative to its price. While the company's return on equity (ROE) is 8.95%, which is reasonable, it lags behind some competitors. Notably, the stock has outperformed the S&P 500 over the past year with a return of 17.52% compared to the index's 10.26%, suggesting a degree of resilience despite its current valuation status.