Home Bancshares, Inc. (HOMB) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-31.8%

$20.88

vs $30.61 price

Levered DCF

$21.05

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

-0.22

Distress zone

Rating

A-

Overall 4 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	11.53×	14.08×	13.06×	14.52×	12.55×	14.98×	11.36×	9.45×
P/B	1.27×	1.43×	1.35×	1.26×	1.45×	1.24×	1.31×	1.21×
P/S	3.98×	3.9×	3.87×	4.28×	5.33×	4.14×	4.08×	3.64×
EV / EBITDA	9.11×	10.79×	11.08×	11.57×	2.9×	9.73×	9.75×	10.04×
Gross margin	77.3%	65.6%	73.0%	82.6%	93.7%	71.4%	80.7%	83.5%
Operating margin	43.8%	36.0%	38.6%	38.1%	55.4%	35.7%	47.7%	50.7%
Net margin	34.6%	27.7%	29.6%	29.5%	42.4%	27.6%	35.8%	38.5%
Current ratio	0.13×	0.16×	0.27×	0.27×	0.47×	0.29×	0.23×	0.22×
Debt / equity	0.22×	0.3×	0.5×	0.35×	0.33×	0.36×	0.45×	0.84×
Interest coverage	1.47×	1.16×	1.47×	3.31×	7.98×	2.97×	2.49×	3.18×
Dividend yield	2.9%	2.7%	2.8%	2.9%	2.3%	2.7%	2.6%	2.8%
Payout ratio	33.4%	37.3%	37.1%	42.1%	28.9%	40.9%	29.6%	26.6%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	11.1%	10.2%	10.4%	8.7%	11.5%	8.2%	11.5%	12.8%
Return on invested capital	8.8%	7.5%	6.9%	6.4%	8.7%	6.0%	7.9%	6.9%
Return on assets	2.1%	1.8%	1.7%	1.3%	1.8%	1.3%	1.9%	2.0%
Free cash flow yield	6.9%	7.5%	7.0%	8.9%	9.5%	8.7%	7.0%	10.4%
Earnings yield	8.7%	7.1%	7.7%	6.9%	8.0%	6.7%	8.8%	10.6%
Enterprise value	$5.7B	$6B	$6B	$4.9B	$1.3B	$2.9B	$3.9B	$4.2B
Net debt / EBITDA	0.43×	0.53×	1.63×	1.16×	-6.28×	-1.09×	1.6×	3.2×
Cash conversion cycle (days)	29	30	-165	-361	-853	-181	-219	-170