Hills Bancorporation (HBIA) fair value: what the stock is really worth
As of Oct 2, 2026: fair value of Hills Bancorporation $65.14, price $46.76, upside +39.3%, quality 63 out of 100. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 27, 2026.
How to read this chart
60‑month range $16.20 – $99.01 · fair‑value band $59.46 – $80.72 · the $46.76 price screens below the $65.14 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Sep 27, 2026.
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Hills Bancorporation operates as the bank holding company for Hills Bank and Trust Company that provides commercial banking in the state of Iowa.
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Hills Bancorporation operates as the bank holding company for Hills Bank and Trust Company that provides commercial banking in the state of Iowa. It accepts various deposits, such as demand, savings, and time deposits; and offers products, including real estate loans comprising residential, multi-family, and commercial real estate loans; mortgage and construction loans; commercial and financial loans; agricultural loans; and automobile, installment, and other consumer loans. The company also maintains night and safe deposit facilities; and provides collection, exchange, and other banking services. In addition, it administers estates, personal trusts, and pension plans; offers farm management, investment advisory, and custodial services for individuals, corporations, and nonprofit organizations; and originates mortgages that are sold in the secondary residential real estate market without mortgage servicing rights being retained. The company operates through its main office and its full-service branches in the Iowa counties of Johnson, Linn, and Washington. It serves individuals, businesses, governmental units, and institutional customers. The company was founded in 1904 and is headquartered in Hills, Iowa.
Stock analysis
Hills Bancorporation (HBIA) currently trades at $46.76, while our model-based Fair Value estimate is $65.14, implying the stock looks roughly 28.2% undervalued today.
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Valuation
Bull case: the Multiples group reads highest at a median of $90.01 per share, and 3 of the 6 models we run sit above the $46.76 price.
Bear case: the Dividend Discount group reads lowest at $14.84, and 3 of the 6 models stay below the price. Evidence for this calculation is medium.
Scenario range: $59.46 (bear) to $80.72 (bull), the price of $46.76 sits below it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 63/100 (solid quality), in the Financial Services sector.
Mixed Growth: Revenue is growing, but margins or cash flow do not fully confirm the trend.
Hills Bancorporation reported revenue of $257M in FY2025 versus $156M in FY2021, a compound +13.4%/yr. Reported net income was $60.5M in FY2025, compounding +5.9%/yr from FY2021.
Key figures
Market cap $432M · P/E ratio 12.1 · P/S ratio 2.86 · EPS (TTM) $3.85 · Dividend yield 1.3% · Net margin 23.5% · Return on equity 13.1% · Return on assets (EBIT) 1.4%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 39 out of 100 (low confidence).
What moves the price
The share trades about 53% below its 52-week high and 23% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Financial Services peers we cover trades at −36% fair-value upside, at 39%, HBIA screens cheaper than that median.
Fair Value models
Bear $59.46Fair Value $65.14Bull $80.72
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above is their evidence-weighted blend, not the output of a single model. Based on fiscal year 2025 figures (about 9 months old). Earnings retained since then ($2.45 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Evidence ⓘEvidence = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.92/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Revenue growth 1 year
+11.6%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+17.4%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+10.4%
Start year 2020 (pandemic). Over 10 years: +8.6% a year
Revenue growth 26 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+5.9%
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What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate.
−5.5%
Earnings growth per share plus dividend.
Earnings per share, growth per year−6.8%
Dividend (yield on the price)1.3%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.−6.8% vs −11.9%, picking up
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.32% → 29%
Start year 2020 (pandemic)
⚠ Revenue per share shrinking 11.9%/yr over ~10Y (margins eroding too) ⓘStructural-decline marker: revenue PER SHARE has fallen over the last decade (robust median trend, not a single year). Backtested across 2005 to 2017, such businesses trailed the market by about 2.5 percentage points per year. Display only: it does not change the fair value or the quality score.
Growth Forecast
A lot of optimism in the price
The price assumes more growth than the company has delivered so far.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+26.5%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect
n/a
No analyst forecast available.
After inflation (USA: IMF forecast 2.4% a year to 2030, 3.1% from 2016 to 2025) that is about +23.6% a year for the price.
Price, fair value, quality and upside side by side.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Banks - Regional · 1053 stocks
Beats the industry median on 8/10 measures
Overall it ranks above its industry peers.
Valuation
Quality Score62 · Top 25%
Fair Value upside+39.3% · Top 25%
Profitability
Return on equity (TTM)13.1% · Above median
Return on assets1.5% · Top 25%
Net margin (TTM)39.1% · Top 25%
Operating margin (TTM)54.6% · Top 25%
Growth and dividend
Revenue growth33.8% · Top 25%
Dividend yield (TTM)1.3% · Bottom 25%
Balance sheet
Debt / equity0.11× · Lowest 25%
Valuation Multiplesvs Banks - Regional median · lower = cheaper
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Cite: Fair Value Calculator (2026). "Hills Bancorporation Fair Value". https://www.fairvalue-calculator.com/stock/HBIA
Frequently asked questions
Is Hills Bancorporation (HBIA) overvalued or undervalued?
As of Sep 27, 2026, our model estimates a fair value of $65.14 versus a price of $46.76, about +39% upside (undervalued).
What is the fair value of HBIA?
Our model-based fair value for Hills Bancorporation is $65.14 (as of Sep 27, 2026), built from audited fundamentals. The current price: $46.76.
What is the quality score of HBIA?
Hills Bancorporation has a Quality Score of 63/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Hills Bancorporation (HBIA)?
Our model-based price target is the fair value of $65.14 (as of Sep 27, 2026) from 6 valuation models. Cautious scenario $59.46, optimistic scenario $80.72. It is a calculation from audited fundamentals, not an analyst target.
What is the Hills Bancorporation stock forecast for 2026?
Our models put fair value at $65.14, about +39% upside versus a price of $46.76 (undervalued). Cautious scenario $59.46, optimistic scenario $80.72. The calculation is refreshed regularly with new filings.
What is the revenue of Hills Bancorporation (HBIA)?
Hills Bancorporation reported trailing-twelve-month revenue of about $174M (latest available figure, as of Sep 27, 2026).
Does Hills Bancorporation pay a dividend?
Hills Bancorporation currently shows a dividend yield of about 1.32% relative to its recent price (as of Sep 27, 2026).
What growth is priced into Hills Bancorporation (HBIA)?
For today's price to be fair in a discounted-cash-flow model, Hills Bancorporation would have to grow free cash flow by +26.5 % per year for five years (discount rate 9.8 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +10.4 % per year. As of Sep 27, 2026.
What discount rate (WACC) does the fair value of HBIA use?
Our models discount Hills Bancorporation at 9.8 %: a base by market capitalisation (small), damped by beta 0.11, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Hills Bancorporation that is +26.5 % per year a year over ten years, using the same discount rate (9.8 %) and the same formula as our fair value.
How much growth has Hills Bancorporation (HBIA) delivered so far?
Over the past 5 years revenue at Hills Bancorporation grew +10.4 % a year. The price currently implies +26.5 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Hills Bancorporation (HBIA) growing?
The median revenue growth in the sector is +9.3 % a year. That is the yardstick for the growth priced into Hills Bancorporation (+26.5 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Hills Bancorporation (HBIA)?
The free-cash-flow yield on the price is 1.96 %: that much free cash flow Hills Bancorporation produces per unit of market value. When it exceeds the discount rate of our models (9.8 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Hills Bancorporation (HBIA)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Hills Bancorporation it is $65.14 per share (as of Sep 27, 2026), against a price of $46.76. It is the blended result of 6 valuation models (cash flow, earnings, asset, dividend).
Is Hills Bancorporation stock overvalued or undervalued in 2026?
As of Sep 27, 2026, HBIA trades below its calculated fair value: price $46.76, fair value $65.14, a gap of about +39% (undervalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of HBIA?
No. The price is what the market pays today ($46.76); the fair value is what the company's own numbers justify ($65.14). For Hills Bancorporation the two are $18.38 per share apart. That gap is exactly why we show both numbers side by side.
How much is Hills Bancorporation worth?
The market values Hills Bancorporation at about $432M (market capitalisation, as of Sep 27, 2026). Per share that is $46.76; our models calculate a fair value of $65.14 per share.
What do the bullish and bearish scenarios say about HBIA?
Our models span a range for Hills Bancorporation: cautious scenario $59.46, base $65.14, optimistic $80.72 per share (as of Sep 27, 2026, price $46.76). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of HBIA?
Hills Bancorporation trades at a price-to-earnings ratio of 12.1 (as of Sep 27, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $65.14 is built from several models across several years.
How solid is the balance sheet of Hills Bancorporation (HBIA)?
Balance-sheet figures for Hills Bancorporation (as of Sep 27, 2026): return on equity 13.1%, debt of 0.11 per unit of equity. They feed the Quality Score of 63/100, which measures business quality independently of the share price.
How far is HBIA from its 52-week high?
Hills Bancorporation trades at $46.76, about 53% below its 52-week high of $99.01 and 23% above the low of $38.16 (as of Oct 2, 2026). Distance from the high says nothing about value: that is what the fair value of $65.14 is for.
Which stocks are comparable to Hills Bancorporation?
From the same area (Financial Services) we also value DBS Group, China Merchants Bank Co, UniCredit S.p.A, Mizuho Financial Group, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Hills Bancorporation stock attractive at the current price?
The data as of Sep 27, 2026: price $46.76, calculated fair value $65.14 (+39%), Quality Score 63/100, from 6 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of HBIA calculated?
We run Hills Bancorporation through 6 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of $65.14, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 14.5 % above its aggregate fair value. Hills Bancorporation currently trades 28 % below its own fair value, and the market average says nothing about that. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Hills Bancorporation (HBIA)?
The closing price on Oct 2, 2026 was $46.76. Our model-based fair value is $65.14, about +39% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Hills Bancorporation right now?
The price is below even our cautious bear case ($59.46). The market is more pessimistic than our downside scenario. Solid quality (63/100) at a price below fair value, the discount is the argument here, not the business quality. For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.
Where does the earnings growth of Hills Bancorporation (HBIA) come from?
Earnings per share at Hills Bancorporation grew −15.6 % a year from 2014 to 2025. Broken into its drivers: revenue per share −13.8 %, EBIT margin −3.5 %, tax rate +1.5 %, residual (interest, one-offs) +0.0 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Hills Bancorporation
How large is the market capitalisation of Hills Bancorporation (HBIA)?
The market capitalisation of Hills Bancorporation is $432M. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Hills Bancorporation (HBIA)?
The price-to-sales ratio of Hills Bancorporation is 2.86 (P/E × margin). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Hills Bancorporation (HBIA)?
Earnings per share at Hills Bancorporation are $3.85 (price ÷ EPS = P/E 12.1). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Hills Bancorporation (HBIA)?
The dividend yield of Hills Bancorporation is 1.3% (payout 16.0%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Hills Bancorporation (HBIA)?
The net margin of Hills Bancorporation is 23.5% (fiscal year 2025). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Hills Bancorporation (HBIA)?
The return on equity (ROE) of Hills Bancorporation is 13.1% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Hills Bancorporation (HBIA)?
On an EBIT basis the return on assets of Hills Bancorporation is 1.4% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Hills Bancorporation (HBIA)?
The operating margin of Hills Bancorporation is 54.6% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Hills Bancorporation (HBIA)?
Revenue at Hills Bancorporation is growing +33.8% versus a year earlier (3y avg +17.4%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Hills Bancorporation (HBIA)?
Earnings per share at Hills Bancorporation are growing +55.3% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Hills Bancorporation (HBIA) carry?
The net debt of Hills Bancorporation is $611M (fiscal year 2025, ≈ 9.4 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Some data
Sep 27, 2026