Hawthorn Bancshares Valuation

Q: What is the Fair Price of HWBK when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

HWBK ($30.42) is trading below our estimate of [[fair value]] ($52.3)

Is HWBK undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Below Fair Value
Significantly Below Fair Value
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of HWBK when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: HWBK ($30.42) is trading below our estimate of fair value ($52.3)

Significantly Below Fair Value: HWBK is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for HWBK?

Key metric: As HWBK is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for HWBK. This is calculated by dividing HWBK's market cap by their current earnings.
What is HWBK's PE Ratio?
PE Ratio	34.2x
Earnings	US$6.22m
Market Cap	US$212.54m

HWBK key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	n/a
Enterprise Value/EBITDA	n/a
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does HWBK's PE Ratio compare to its peers?

The above table shows the PE ratio for HWBK vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	75.4x
FIZN First Citizens Bancshares	13.4x	n/a	US$217.1m
FFNW First Financial Northwest	197x	95.0%	US$209.4m
SBT Sterling Bancorp (Southfield MI)	41.9x	n/a	US$253.2m
FVCB FVCBankcorp	49.3x	74.6%	US$251.0m
HWBK Hawthorn Bancshares	34.2x	n/a	US$212.5m

Price-To-Earnings vs Peers: HWBK is good value based on its Price-To-Earnings Ratio (34.2x) compared to the peer average (75.4x).

Price to Earnings Ratio vs Industry

How does HWBK's PE Ratio compare vs other companies in the US Banks Industry?

4 Companies	Price / Earnings	Estimated Growth	Market Cap
FRCB First Republic Bank	0.02x	n/a	US$27.98m
BKGM BankGuam Holding	1x	n/a	US$18.48m
SBNY Signature Bank	0.002x	n/a	US$2.18m
BCBH.F Caribbean Investment Holdings	0.00001x	n/a	US$132.00

No more companies available in this PE range

4 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: HWBK is expensive based on its Price-To-Earnings Ratio (34.2x) compared to the US Banks industry average (13.2x).

Price to Earnings Ratio vs Fair Ratio

What is HWBK's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

HWBK PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	34.2x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate HWBK's Price-To-Earnings Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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