Is Mercantile Bank Corp. overvalued or undervalued?

Jun 25 2025 08:24 AM IST
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As of May 9, 2025, Mercantile Bank Corp. is fairly valued with a P/E ratio of 9, a Price to Book Value of 1.19, and an EV to EBIT of 11.92, outperforming the S&P 500 with a 21.85% return over the past year.
As of 9 May 2025, Mercantile Bank Corp. has moved from an expensive valuation grade to fair. The company is currently fairly valued based on its financial metrics. Key ratios include a P/E ratio of 9, a Price to Book Value of 1.19, and an EV to EBIT of 11.92.

In comparison to its peers, Mercantile Bank Corp.'s P/E ratio of 9 is significantly lower than Coastal Financial Corp.'s P/E of 25.69, which is classified as very expensive, while Premier Financial Corp. has a P/E of 14.14, also rated as fair. The recent stock performance shows that Mercantile Bank Corp. has outperformed the S&P 500 over the past year, with a return of 21.85% compared to the index's 10.26%, reinforcing its fair valuation status.
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