Old National Bancorp

NasdaqGS:ONB Stock Report

Market Cap: US$6.7b

Old National Bancorp Valuation

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

Valuation Score

4/6

Valuation Score 4/6

  • 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 ONB when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ONB ($20.93) is trading below our estimate of fair value ($39.6)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for ONB. This is calculated by dividing ONB's market cap by their current earnings.
What is ONB's PE Ratio?
PE Ratio13.3x
EarningsUS$501.66m
Market CapUS$6.69b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for ONB vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average14.8x
COLB Columbia Banking System
13x9.4%US$6.3b
HOMB Home Bancshares (Conway AR)
15.6x4.6%US$6.1b
WBS Webster Financial
13.6x15.2%US$10.3b
CFR Cullen/Frost Bankers
17.1x1.4%US$8.8b
ONB Old National Bancorp
13.3x13.2%US$6.7b

Price-To-Earnings vs Peers: ONB is good value based on its Price-To-Earnings Ratio (13.3x) compared to the peer average (14.8x).

Price to Earnings Ratio vs Industry

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

4 CompaniesPrice / EarningsEstimated GrowthMarket Cap
FRCB First Republic Bank
0.02xn/aUS$27.98m
BKGM BankGuam Holding
1xn/aUS$18.48m
SBNY Signature Bank
0.002xn/aUS$2.18m
BCBH.F Caribbean Investment Holdings
0.00001xn/aUS$132.00
No more companies available in this PE range
ONB 13.3xIndustry Avg. 12.8xNo. of Companies75PE0612182430+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: ONB is expensive based on its Price-To-Earnings Ratio (13.3x) compared to the US Banks industry average (12.8x).

Price to Earnings Ratio vs Fair Ratio

What is ONB'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.

ONB PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio13.3x
Fair PE Ratio16x

Price-To-Earnings vs Fair Ratio: ONB is good value based on its Price-To-Earnings Ratio (13.3x) compared to the estimated Fair Price-To-Earnings Ratio (16x).

Analyst Price Targets

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

The above table shows the analyst ONB forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$20.93
US$23.38
+11.7%
6.4%US$26.00US$21.00n/a8
Nov ’25US$19.12
US$22.69
+18.7%
3.6%US$24.00US$21.00n/a8
Oct ’25US$18.06
US$22.94
+27.0%
3.5%US$24.00US$21.50n/a8
Sep ’25US$19.85
US$22.69
+14.3%
3.3%US$24.00US$21.50n/a8
Aug ’25US$19.20
US$22.69
+18.2%
3.3%US$24.00US$21.50n/a8
Jul ’25US$17.10
US$20.13
+17.7%
4.6%US$22.00US$19.00n/a8
Jun ’25US$17.09
US$20.00
+17.0%
3.8%US$21.00US$19.00n/a7
May ’25US$16.77
US$20.00
+19.3%
3.8%US$21.00US$19.00n/a7
Apr ’25US$16.65
US$19.64
+18.0%
4.9%US$21.00US$18.00n/a7
Mar ’25US$16.39
US$19.50
+19.0%
4.9%US$21.00US$18.00n/a7
Feb ’25US$16.20
US$19.57
+20.8%
4.6%US$21.00US$18.00n/a7
Jan ’25US$16.89
US$18.50
+9.5%
11.3%US$22.00US$15.50n/a7
Dec ’24US$15.76
US$16.93
+7.4%
6.8%US$19.00US$15.50n/a7
Nov ’24US$13.60
US$17.29
+27.1%
8.4%US$19.50US$15.50US$19.127
Oct ’24US$14.54
US$18.21
+25.3%
4.1%US$19.50US$17.00US$18.067
Sep ’24US$15.79
US$18.43
+16.7%
4.7%US$19.50US$17.00US$19.857
Aug ’24US$16.76
US$18.43
+10.0%
4.7%US$19.50US$17.00US$19.207
Jul ’24US$13.94
US$16.64
+19.4%
7.7%US$19.00US$14.50US$17.107
Jun ’24US$12.63
US$16.79
+32.9%
7.4%US$19.00US$14.50US$17.097
May ’24US$13.17
US$17.00
+29.1%
8.2%US$19.00US$14.50US$16.777
Apr ’24US$14.42
US$19.00
+31.8%
9.7%US$22.00US$16.00US$16.657
Mar ’24US$17.51
US$20.67
+18.0%
5.3%US$22.00US$19.00US$16.396
Feb ’24US$17.54
US$20.67
+17.8%
5.3%US$22.00US$19.00US$16.206
Jan ’24US$17.98
US$22.33
+24.2%
5.0%US$24.00US$21.00US$16.896
Dec ’23US$19.02
US$22.33
+17.4%
5.0%US$24.00US$21.00US$15.766
Nov ’23US$19.71
US$22.33
+13.3%
5.0%US$24.00US$21.00US$13.606

Analyst Forecast: Target price is less than 20% higher than the current share price.

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