HSBC PE Ratio & Valuation,Is HSBC Overvalued

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 Fair zone, suggesting that its current forward PS ratio of 3.67 is considered Fairly compared with the five-year average of 6.66. The fair price of HSBC Holdings PLC (HSBC) is between 46.04 to 82.44 according to relative valuation methord.

Relative Value

Fair Zone

46.04-82.44

Current Price：74.99

Fair

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.

3.66

HSBC Holdings PLC. (HSBC) has a current PS of 3.66. The 5-year average PS is 2.46. The thresholds are as follows: Strongly Undervalued below 1.68, Undervalued between 1.68 and 2.07, Fairly Valued between 2.85 and 2.07, Overvalued between 2.85 and 3.24, and Strongly Overvalued above 3.24. The current Forward PS of 3.66 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 0.39. The thresholds are as follows: Strongly Undervalued below -3.03, Undervalued between -3.03 and -1.32, Fairly Valued between 2.11 and -1.32, Overvalued between 2.11 and 3.82, and Strongly Overvalued above 3.82. 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 7.55. Compared to its 3-year average P/B ratio of 1.31 , the current P/B ratio is approximately 474.12% higher. Relative to its 5-year average P/B ratio of 1.07, the current P/B ratio is about 605.06% 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 11.75%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of -1.95% , the current FCF yield is about -100.00% lower.

7.55

P/B

Median3y

1.31

Median5y

1.07

0.00

FCF Yield

Median3y

11.75

Median5y

-1.95

Competitors Valuation Multiple

The average P/S ratio for HSBC's competitors is 2.59, providing a benchmark for relative valuation. HSBC Holdings PLC Corp (HSBC) exhibits a P/S ratio of 3.66, which is 41.31% above the industry average. Given its robust revenue growth of %, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

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.

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Frequently Asked Questions

Is HSBC Holdings PLC (HSBC) currently overvalued or undervalued?

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 46.04 to 82.44 according to relative valuation methord.

How does HSBC's valuation metrics compare to the industry average?

What is the current P/B ratio for HSBC Holdings PLC (HSBC) as of Dec 15 2025?

As of Dec 15 2025, HSBC Holdings PLC (HSBC) has a P/B ratio of 7.55. This indicates that the market values HSBC at 7.55 times its book value.

What is the current FCF Yield for HSBC Holdings PLC (HSBC) as of Dec 15 2025?

As of Dec 15 2025, 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 Dec 15 2025?

As of Dec 15 2025, HSBC Holdings PLC (HSBC) has a Forward P/E ratio of 9.28. This means the market is willing to pay $9.28 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 Dec 15 2025?

As of Dec 15 2025, HSBC Holdings PLC (HSBC) has a Forward P/S ratio of 3.67. This means the market is valuing HSBC at $3.67 for every dollar of expected revenue over the next 12 months.

HSBC Valuation

HSBC Valuation

HSBC Relative Valuation

Historical Valuation

Competitors Valuation Multiple

Performance Decomposition

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Frequently Asked Questions

Is HSBC Holdings PLC (HSBC) currently overvalued or undervalued?

What is HSBC Holdings PLC (HSBC) fair value?

How does HSBC's valuation metrics compare to the industry average?

What is the current P/B ratio for HSBC Holdings PLC (HSBC) as of Dec 15 2025?

What is the current FCF Yield for HSBC Holdings PLC (HSBC) as of Dec 15 2025?

What is the current Forward P/E ratio for HSBC Holdings PLC (HSBC) as of Dec 15 2025?

What is the current Forward P/S ratio for HSBC Holdings PLC (HSBC) as of Dec 15 2025?