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Is this Large Market Cap Stock target price reasonable for Home Bancshares, Inc. (Conway, AR) (NASDAQ:HOMB)?

The company in question is, Home Bancshares, Inc. (Conway, AR) (NASDAQ:HOMB) currently with a stock price of 20.02 (0.65% today). The market cap for Home Bancshares, Inc. (Conway, AR) is 2799.72, and is in the sector Financial, and Money Center Banks industry. The target price for Home Bancshares, Inc. (Conway, AR) is 22.94. Currently Home Bancshares, Inc. (Conway, AR) is trading with a P/E of 17.57, and a forward P/E of 15.02. Average volume for Home Bancshares, Inc. (Conway, AR) is 521.67 and so far today it is 190816.

Performance in the last year for Home Bancshares, Inc. (Conway, AR) has been 1.52%. For EPS growth, Home Bancshares, Inc. (Conway, AR) has seen a growth of 18.30%, and is looking to grow in the next year to 7.82%. More long term stats show that EPS growth has been 50.50% over the last five years and could be 5.00% for the next five years. Home Bancshares, Inc. (Conway, AR) has seen sales growth quarter over quarter at 20.20%, with EPS growth quarter over quarter at 24.00%. The 20-day simple moving average is -8.33%, with the 200-day simple moving average coming to -2.81%.

Since the IPO date for Home Bancshares, Inc. (Conway, AR) on the 6/23/2006, Home Bancshares, Inc. (Conway, AR) has seen performance year to date to be -0.62%. With Home Bancshares, Inc. (Conway, AR) trading at 20.02, the dividend yield is 1.81%, and the EPS is 1.13.

So could Home Bancshares, Inc. (Conway, AR), be undervalued? Well as said before P/E is 17.57. The PEG is 3.51, P/S is 6.71 and the P/B is at 2.21. The P/cash is 15.06, with P/free cash flow at 19.23.

Home Bancshares, Inc. (Conway, AR) ability to deal with debt shows that the current ratio is *TBA, and the quick ratio is *TBA. This is with long term debt/equity at 0.05, and total debt/equity at 0.05.

In terms of margins, Home Bancshares, Inc. (Conway, AR) has a gross margin of *TBA, an operating margin of 87.00% and a profit margin of 37.90%.Payout ratio for Home Bancshares, Inc. (Conway, AR) is 27.50%. Return on assets come to 1.70% with return on investment coming to 19.90%.

Insider ownership for Home Bancshares, Inc. (Conway, AR), is at 5.00% and institutional ownership comes to 59.20%. Outstanding shares are at 140.76. While shares float is 122.28. The float short is currently 6.43%, and short ratio is 15.07.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Tony Dabbs

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