Home Bancshares, Inc. (Conway, AR)

NYSE:HOMB Stock Report

Market Cap: US$6.1b

Home Bancshares (Conway AR) Valuation

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

Valuation Score

2/6

Valuation Score 2/6

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

Below Fair Value: HOMB ($30.48) is trading below our estimate of fair value ($49.68)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for HOMB. This is calculated by dividing HOMB's market cap by their current earnings.
What is HOMB's PE Ratio?
PE Ratio15.6x
EarningsUS$387.92m
Market CapUS$6.11b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for HOMB vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average13.4x
COLB Columbia Banking System
13x9.4%US$6.3b
FNB F.N.B
14.8x16.2%US$5.9b
VLY Valley National Bancorp
17.8x28.6%US$5.7b
OZK Bank OZK
7.8x4.9%US$5.4b
HOMB Home Bancshares (Conway AR)
15.6x4.6%US$6.1b

Price-To-Earnings vs Peers: HOMB is expensive based on its Price-To-Earnings Ratio (15.6x) compared to the peer average (13.4x).

Price to Earnings Ratio vs Industry

How does HOMB'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
HOMB 15.6xIndustry Avg. 12.8xNo. of Companies75PE0612182430+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: HOMB is expensive based on its Price-To-Earnings Ratio (15.6x) compared to the US Banks industry average (12.8x).

Price to Earnings Ratio vs Fair Ratio

What is HOMB'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.

HOMB PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio15.6x
Fair PE Ratio13.8x

Price-To-Earnings vs Fair Ratio: HOMB is expensive based on its Price-To-Earnings Ratio (15.6x) compared to the estimated Fair Price-To-Earnings Ratio (13.8x).

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 HOMB forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$30.48
US$30.43
-0.2%
8.8%US$36.00US$28.00n/a7
Nov ’25US$27.16
US$29.86
+9.9%
5.5%US$32.00US$28.00n/a7
Oct ’25US$26.24
US$29.43
+12.2%
4.8%US$32.00US$28.00n/a7
Sep ’25US$27.84
US$29.43
+5.7%
4.8%US$32.00US$28.00n/a7
Aug ’25US$27.40
US$29.43
+7.4%
4.8%US$32.00US$28.00n/a7
Jul ’25US$23.71
US$27.14
+14.5%
5.7%US$29.00US$24.00n/a7
Jun ’25US$23.52
US$27.43
+16.6%
3.8%US$29.00US$26.00n/a7
May ’25US$24.04
US$27.43
+14.1%
3.8%US$29.00US$26.00n/a7
Apr ’25US$24.10
US$27.29
+13.2%
3.8%US$29.00US$26.00n/a7
Mar ’25US$23.34
US$27.29
+16.9%
3.8%US$29.00US$26.00n/a7
Feb ’25US$23.22
US$27.29
+17.5%
3.8%US$29.00US$26.00n/a7
Jan ’25US$25.33
US$26.14
+3.2%
3.8%US$28.00US$25.00n/a7
Dec ’24US$23.05
US$25.00
+8.5%
4.3%US$26.00US$23.00n/a7
Nov ’24US$20.24
US$25.33
+25.2%
2.9%US$26.00US$24.00US$27.166
Oct ’24US$20.94
US$27.00
+28.9%
2.1%US$28.00US$26.00US$26.246
Sep ’24US$22.81
US$27.00
+18.4%
2.1%US$28.00US$26.00US$27.846
Aug ’24US$24.29
US$27.00
+11.2%
2.1%US$28.00US$26.00US$27.406
Jul ’24US$22.80
US$25.50
+11.8%
3.0%US$27.00US$25.00US$23.716
Jun ’24US$21.99
US$25.50
+16.0%
3.0%US$27.00US$25.00US$23.526
May ’24US$21.27
US$25.50
+19.9%
3.0%US$27.00US$25.00US$24.046
Apr ’24US$21.71
US$26.67
+22.8%
4.7%US$28.00US$25.00US$24.106
Mar ’24US$24.29
US$27.25
+12.2%
2.1%US$28.00US$26.50US$23.346
Feb ’24US$24.15
US$26.92
+11.5%
3.8%US$28.00US$25.00US$23.226
Jan ’24US$22.79
US$28.00
+22.9%
2.1%US$29.00US$27.00US$25.336
Dec ’23US$25.39
US$27.83
+9.6%
3.2%US$29.00US$26.00US$23.056
Nov ’23US$25.45
US$27.83
+9.4%
3.2%US$29.00US$26.00US$20.246

Analyst Forecast: Target price is lower than the current share price.

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