Is Home Bancorp, Inc. overvalued or undervalued?

As of 21 July 2025, the valuation grade for Home Bancorp, Inc. moved from fair to very attractive, indicating a strong improvement in its valuation outlook. The company appears undervalued, with a P/E ratio of 10, a Price to Book Value of 0.98, and an EV to EBITDA of 10.62, all suggesting that the stock is trading at a discount relative to its earnings and book value. In comparison, peers such as Peoples Financial Services Corp. have a P/E of 10.84, while ACNB Corp. shows a higher P/E of 13.51, reinforcing the notion that Home Bancorp is positioned favorably within its industry.
Additionally, Home Bancorp's recent stock performance has outpaced the S&P 500, with a year-to-date return of 23.20% compared to the S&P 500's 12.22%, and a one-year return of 28.51% versus 17.14% for the index. This performance further supports the argument that the stock is undervalued relative to its growth potential and market performance.