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

As of 3 October 2025, the valuation grade for Home Bancshares, Inc. (Arkansas) has moved from very attractive to attractive, indicating a shift in perceived value. The company appears to be fairly valued based on its current metrics. Key ratios include a P/E ratio of 13, a Price to Book Value of 1.39, and an EV to EBITDA of 9.86, which suggest that the stock is reasonably priced compared to its earnings and book value.
In comparison to its peers, East West Bancorp, Inc. has a higher P/E ratio of 15.04, while Western Alliance Bancorp shows a lower EV to EBITDA of 11.90, indicating that Home Bancshares is competitively positioned within the regional banks sector. Despite the recent underperformance against the S&P 500 in the short term, with a year-to-date return of -0.71% compared to the S&P 500's 14.18%, the long-term performance over five years shows a return of 77.74%, suggesting potential for recovery and growth.