HSBC Relative Valuation
HSBC's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, HSBC is overvalued; if below, it's undervalued.
Historical Valuation
HSBC Holdings PLC (HSBC) is now in the Overvalued zone, suggesting that its current forward PE ratio of 10.65 is considered Overvalued compared with the five-year average of 6.82. The fair price of HSBC Holdings PLC (HSBC) is between 43.92 to 77.86 according to relative valuation methord. Compared to the current price of 80.45 USD , HSBC Holdings PLC is Overvalued By 3.33%.
Relative Value
Fair Zone
43.92-77.86
Current Price：80.45
3.33%
Overvalued
10.65
PE
1Y
3Y
5Y
0.00
EV/EBITDA
HSBC Holdings PLC. (HSBC) has a current EV/EBITDA of 0.00. The 5-year average EV/EBITDA is 0.00. The thresholds are as follows: Strongly Undervalued below 0.00, Undervalued between 0.00 and 0.00, Fairly Valued between 0.00 and 0.00, Overvalued between 0.00 and 0.00, and Strongly Overvalued above 0.00. The current Forward EV/EBITDA of 0.00 falls within the Strongly Undervalued range.
NaN
EV/EBIT
HSBC Holdings PLC. (HSBC) has a current EV/EBIT of NaN. The 5-year average EV/EBIT is NaN. The thresholds are as follows: Strongly Undervalued below NaN, Undervalued between NaN and NaN, Fairly Valued between NaN and NaN, Overvalued between NaN and NaN, and Strongly Overvalued above NaN. The current Forward EV/EBIT of NaN falls within the range.
3.95
PS
HSBC Holdings PLC. (HSBC) has a current PS of 3.95. The 5-year average PS is 2.48. The thresholds are as follows: Strongly Undervalued below 1.65, Undervalued between 1.65 and 2.07, Fairly Valued between 2.89 and 2.07, Overvalued between 2.89 and 3.31, and Strongly Overvalued above 3.31. The current Forward PS of 3.95 falls within the Strongly Overvalued range.
0.00
P/OCF
HSBC Holdings PLC. (HSBC) has a current P/OCF of 0.00. The 5-year average P/OCF is 0.00. The thresholds are as follows: Strongly Undervalued below 0.00, Undervalued between 0.00 and 0.00, Fairly Valued between 0.00 and 0.00, Overvalued between 0.00 and 0.00, and Strongly Overvalued above 0.00. The current Forward P/OCF of 0.00 falls within the Strongly Undervalued range.
0.00
P/FCF
HSBC Holdings PLC. (HSBC) has a current P/FCF of 0.00. The 5-year average P/FCF is 0.38. The thresholds are as follows: Strongly Undervalued below -2.99, Undervalued between -2.99 and -1.30, Fairly Valued between 2.06 and -1.30, Overvalued between 2.06 and 3.74, and Strongly Overvalued above 3.74. The current Forward P/FCF of 0.00 falls within the Historic Trend Line -Fairly Valued range.
HSBC Holdings PLC (HSBC) has a current Price-to-Book (P/B) ratio of 1.61. Compared to its 3-year average P/B ratio of 1.39 , the current P/B ratio is approximately 16.17% higher. Relative to its 5-year average P/B ratio of 1.12, the current P/B ratio is about 44.43% higher. HSBC Holdings PLC (HSBC) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 11.40%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of -1.88% , the current FCF yield is about -100.00% lower.
1.61
P/B
Median3y
1.39
Median5y
1.12
0.00
FCF Yield
Median3y
11.40
Median5y
-1.88
Competitors Valuation Multiple
The average P/S ratio for HSBC's competitors is 2.72, providing a benchmark for relative valuation. HSBC Holdings PLC Corp (HSBC) exhibits a P/S ratio of 3.95, which is 45.43% above the industry average. Given its robust revenue growth of %, this premium appears unsustainable.
Performance Decomposition
1Y
3Y
5Y
Market capitalization of HSBC increased by 0.00% over the past 1 year. The primary factor behind the change was an decrease in Unknown from 0.00 to 0.00.
The secondary factor is the Unknown, contributed 0.00%to the performance.
Overall, the performance of HSBC in the past 1 year is driven by Unknown.
People Also Watch
ANET
Arista Networks Inc
137.19USD
2.69%
GS
Goldman Sachs Group Inc
948.44USD
3.73%
INTU
Intuit Inc
633.84USD
0.70%
HON
Honeywell International Inc
201.09USD
2.66%
LOW
Lowe's Companies Inc
244.75USD
-0.87%
PGR
Progressive Corp
212.92USD
0.38%
UL
Unilever PLC
63.74USD
-2.01%
PLTR
Palantir Technologies Inc
174.04USD
3.68%
AMGN
Amgen Inc
320.72USD
-2.11%
NEE
Nextera Energy Inc
81.32USD
0.48%
Frequently Asked Questions
Is HSBC Holdings PLC (HSBC) currently overvalued or undervalued?
HSBC Holdings PLC (HSBC) is now in the Overvalued zone, suggesting that its current forward PE ratio of 10.65 is considered Overvalued compared with the five-year average of 6.82. The fair price of HSBC Holdings PLC (HSBC) is between 43.92 to 77.86 according to relative valuation methord. Compared to the current price of 80.45 USD , HSBC Holdings PLC is Overvalued By 3.33% .
What is HSBC Holdings PLC (HSBC) fair value?
HSBC's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average , adjusted by weights. The fair price of HSBC Holdings PLC (HSBC) is between 43.92 to 77.86 according to relative valuation methord.
How does HSBC's valuation metrics compare to the industry average?
The average P/S ratio for HSBC's competitors is 2.72, providing a benchmark for relative valuation. HSBC Holdings PLC Corp (HSBC) exhibits a P/S ratio of 3.95, which is 45.43% above the industry average. Given its robust revenue growth of %, this premium appears unsustainable.
What is the current P/B ratio for HSBC Holdings PLC (HSBC) as of Jan 06 2026?
As of Jan 06 2026, HSBC Holdings PLC (HSBC) has a P/B ratio of 1.61. This indicates that the market values HSBC at 1.61 times its book value.
What is the current FCF Yield for HSBC Holdings PLC (HSBC) as of Jan 06 2026?
As of Jan 06 2026, HSBC Holdings PLC (HSBC) has a FCF Yield of 0.00%. This means that for every dollar of HSBC Holdings PLC’s market capitalization, the company generates 0.00 cents in free cash flow.
What is the current Forward P/E ratio for HSBC Holdings PLC (HSBC) as of Jan 06 2026?
As of Jan 06 2026, HSBC Holdings PLC (HSBC) has a Forward P/E ratio of 10.65. This means the market is willing to pay $10.65 for every dollar of HSBC Holdings PLC’s expected earnings over the next 12 months.
What is the current Forward P/S ratio for HSBC Holdings PLC (HSBC) as of Jan 06 2026?
As of Jan 06 2026, HSBC Holdings PLC (HSBC) has a Forward P/S ratio of 3.95. This means the market is valuing HSBC at $3.95 for every dollar of expected revenue over the next 12 months.