Home Bancshares, Inc. (Conway, AR)

NYSE:HOMB Stock Report

Market Cap: US$4.9b

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 ($24.54) is trading below our estimate of fair value ($40.73)

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?

Other financial metrics that can be useful for relative valuation.

HOMB 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/Revenuen/a
Enterprise Value/EBITDAn/a
PEG Ratio-674x

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 Average9.2x
OZK Bank OZK
7.6x4.4%US$5.1b
FNB F.N.B
10.6x9.2%US$5.0b
VLY Valley National Bancorp
8.3x12.0%US$4.0b
HWC Hancock Whitney
10.2x4.5%US$3.9b
HOMB Home Bancshares (Conway AR)
12.6x-0.02%US$4.9b

Price-To-Earnings vs Peers: HOMB is expensive based on its Price-To-Earnings Ratio (12.6x) compared to the peer average (9.2x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a6.1%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a6.1%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: HOMB is expensive based on its Price-To-Earnings Ratio (12.6x) compared to the US Banks industry average (9.5x).


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 Ratio12.6x
Fair PE Ratio10.7x

Price-To-Earnings vs Fair Ratio: HOMB is expensive based on its Price-To-Earnings Ratio (12.6x) compared to the estimated Fair Price-To-Earnings Ratio (10.7x).


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$24.54
US$27.29
+11.2%
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$24.00n/a6
Oct ’24US$20.94
US$27.00
+28.9%
2.1%US$28.00US$26.00n/a6
Sep ’24US$22.81
US$27.00
+18.4%
2.1%US$28.00US$26.00n/a6
Aug ’24US$24.29
US$27.00
+11.2%
2.1%US$28.00US$26.00n/a6
Jul ’24US$22.80
US$25.50
+11.8%
3.0%US$27.00US$25.00n/a6
Jun ’24US$21.99
US$25.50
+16.0%
3.0%US$27.00US$25.00n/a6
May ’24US$21.27
US$25.50
+19.9%
3.0%US$27.00US$25.00n/a6
Apr ’24US$21.71
US$26.67
+22.8%
4.7%US$28.00US$25.00n/a6
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
Oct ’23US$22.51
US$27.33
+21.4%
5.0%US$29.00US$25.00US$20.946
Sep ’23US$23.34
US$27.33
+17.1%
5.0%US$29.00US$25.00US$22.816
Aug ’23US$23.73
US$27.33
+15.2%
5.0%US$29.00US$25.00US$24.296
Jul ’23US$21.10
US$27.67
+31.1%
4.5%US$29.00US$26.00US$22.806
Jun ’23US$22.42
US$27.67
+23.4%
4.5%US$29.00US$26.00US$21.996
May ’23US$21.62
US$27.67
+28.0%
4.5%US$29.00US$26.00US$21.276
Apr ’23US$22.55
US$28.33
+25.6%
3.9%US$30.00US$27.00US$21.716
Mar ’23US$22.25
US$28.33
+27.3%
3.3%US$29.00US$27.00US$24.296

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


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