Home BancShares Valuation
| HOMB Stock | USD 23.22 0.79 3.52% |
At this time, the firm appears to be undervalued. Home BancShares retains a regular Real Value of $25.85 per share. The prevalent price of the firm is $23.22. Our model calculates the value of Home BancShares from evaluating the firm fundamentals such as Return On Asset of 0.0173, return on equity of 0.11, and Current Valuation of 5.43 B as well as inspecting its technical indicators and probability of bankruptcy. In general, most investors encourage taking in undervalued assets and trading overvalued assets since, at some point, asset prices and their ongoing real values will come together. Key fundamental drivers impacting Home BancShares' valuation include:
Price Book 1.2166 | Enterprise Value 5.4 B | Price Sales 4.6984 | Forward PE 12.0337 | Trailing PE 11.9691 |
Undervalued
Today
Please note that Home BancShares' price fluctuation is very steady at this time. Calculation of the real value of Home BancShares is based on 3 months time horizon. Increasing Home BancShares' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Home BancShares is useful when determining the fair value of the Home stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Home BancShares. Since Home BancShares is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Home Stock. However, Home BancShares' intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 23.22 | Real 25.85 | Target 28.33 | Hype 23.22 | Naive 22.25 |
The real value of Home Stock, also known as its intrinsic value, is the underlying worth of Home BancShares Company, which is reflected in its stock price. It is based on Home BancShares' financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Home BancShares' stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Home BancShares' stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Home BancShares helps investors to forecast how Home stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Home BancShares more accurately as focusing exclusively on Home BancShares' fundamentals will not take into account other important factors: Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Home BancShares' intrinsic value based on its ongoing forecasts of Home BancShares' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Home BancShares' closest peers. When choosing an evaluation method for Home BancShares, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.
Home BancShares Investments |
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Home Valuation Trend
Knowing Home BancShares' actual value is paramount for traders to make sound investment determinations. Home BancShares' real value is not only important for the investor to make better decisions but also for a more accurate overall view of Home BancShares' financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Home BancShares' enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.
Home Market Cap
Home BancShares is one of the top stocks in market capitalization category among related companies. Market capitalization of Financials industry is currently estimated at about 5.01 Billion. Home BancShares totals roughly 4.67 Billion in market capitalization claiming about 93% of equities under Financials industry.Home BancShares Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining Home BancShares's current stock value. Our valuation model uses many indicators to compare Home BancShares value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Home BancShares competition to find correlations between indicators driving Home BancShares's intrinsic value. More Info.Home BancShares is one of the top stocks in price to earning category among related companies. It is one of the top stocks in price to book category among related companies fabricating about 0.09 of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for Home BancShares is roughly 11.33 . The current year's Price To Book Ratio is expected to grow to 1.94. Comparative valuation analysis is a catch-all model that can be used if you cannot value Home BancShares by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Home BancShares' Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Home BancShares' earnings, one of the primary drivers of an investment's value.Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Home BancShares' worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Home BancShares and how it compares across the competition.
About Home BancShares Valuation
The stock valuation mechanism determines the current worth of Home BancShares on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Home BancShares. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Home BancShares based exclusively on its fundamental and basic technical indicators. By analyzing Home BancShares's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Home BancShares's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Home BancShares. We calculate exposure to Home BancShares's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Home BancShares's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 1.2 B | 1.3 B | |
| Pretax Profit Margin | 0.38 | 0.34 | |
| Operating Profit Margin | (0.02) | (0.01) | |
| Net Profit Margin | 0.29 | 0.23 | |
| Gross Profit Margin | 0.82 | 0.68 |
8 Steps to conduct Home BancShares' Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Home BancShares' potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Home BancShares' valuation analysis, follow these 8 steps:- Gather financial information: Obtain Home BancShares' financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Home BancShares' revenue streams: Identify Home BancShares' primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Home BancShares' industry and market trends, including the size of the market, growth rate, and competition.
- Establish Home BancShares' growth potential: Evaluate Home BancShares' management, business model, and growth potential.
- Determine Home BancShares' financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Home BancShares' estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
A single share of Home BancShares represents a small ownership stake in the entity. As a stockholder of Home, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
Home BancShares Dividends Analysis For Valuation
At present, Home BancShares' Dividend Yield is projected to increase slightly based on the last few years of reporting. The current year's Dividend Paid And Capex Coverage Ratio is expected to grow to 3.10, whereas Dividends Paid is projected to grow to (138.6 M). . At present, Home BancShares' Retained Earnings are projected to increase significantly based on the last few years of reporting. The current year's Retained Earnings Total Equity is expected to grow to about 1.7 B, whereas Earning Assets are forecasted to decline to about 2.3 B.
| Last Reported | Projected for Next Year | ||
| Dividends Paid | -145.9 M | -138.6 M | |
| Dividend Yield | 0.03 | 0.03 | |
| Dividend Payout Ratio | 0.37 | 0.22 | |
| Dividend Paid And Capex Coverage Ratio | 3.08 | 3.10 |
There are various types of dividends Home BancShares can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Home shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Home BancShares directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Home pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Home BancShares by the value of the dividends paid out.
Home BancShares Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Home BancShares does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 202.8 M | |
| Quarterly Earnings Growth Y O Y | -0.247 | |
| Forward Price Earnings | 12.0337 |
Home BancShares Current Valuation Indicators
Valuation refers to the process of determining the present value of Home BancShares and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Home we look at many different elements of the entity such as Home's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Home BancShares' valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Home BancShares' valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Home BancShares, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Home BancShares' valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Home BancShares' worth.When determining whether Home BancShares offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Home BancShares' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Home Bancshares Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Home Bancshares Stock: Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in Home BancShares. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in population. For information on how to trade Home Stock refer to our How to Trade Home Stock guide.You can also try the FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Complementary Tools for Home Stock analysis
When running Home BancShares' price analysis, check to measure Home BancShares' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Home BancShares is operating at the current time. Most of Home BancShares' value examination focuses on studying past and present price action to predict the probability of Home BancShares' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Home BancShares' price. Additionally, you may evaluate how the addition of Home BancShares to your portfolios can decrease your overall portfolio volatility.
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Is Home BancShares' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Home BancShares. If investors know Home will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Home BancShares listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.25) | Dividend Share 0.72 | Earnings Share 1.94 | Revenue Per Share 4.845 | Quarterly Revenue Growth (0.05) |
The market value of Home BancShares is measured differently than its book value, which is the value of Home that is recorded on the company's balance sheet. Investors also form their own opinion of Home BancShares' value that differs from its market value or its book value, called intrinsic value, which is Home BancShares' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Home BancShares' market value can be influenced by many factors that don't directly affect Home BancShares' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Home BancShares' value and its price as these two are different measures arrived at by different means. Investors typically determine if Home BancShares is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Home BancShares' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.