Is Home Bancshares, Inc. (Arkansas) overvalued or undervalued?

As of 16 April 2025, the valuation grade for Home Bancshares, Inc. (Arkansas) has moved from fair to very attractive, indicating a significant improvement in its perceived value. The company appears to be undervalued based on its current metrics. The P/E ratio stands at 13, which is lower than the industry average, while the Price to Book Value is 1.39, suggesting that the stock is trading at a reasonable valuation relative to its assets. Additionally, the EV to EBITDA ratio is 9.86, which further supports the notion of undervaluation.
In comparison to its peers, Home Bancshares has a valuation P/E of 12.98, which is competitive, and a PEG ratio of 1.64, indicating that it is priced attractively for its growth prospects. Notably, its ROCE is 13.79% and ROE is 10.32%, reflecting strong operational efficiency. The company's recent stock performance has outpaced the S&P 500 over the past year, returning 21.48% compared to the index's 10.26%, reinforcing the attractiveness of its current valuation.