HSBC Holdings plc (HSBC)
Financial Services · NYQ · US
Fundamentals
Valuation and ratings
HSBC Holdings plc trades at USD100.52, which is 25% above the USD75.89 our discounted cash flow model puts on the business. On that measure it screens as expensive, which is not the same as saying it will fall.
Our moat model scores it 50 out of 100, which is a moat, but not a deep one. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 16.2 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About HSBC Holdings plc
HSBC Holdings plc engages in the provision of banking and financial products and services worldwide. It operates through four segments: Hong Kong, UK, Corporate and Institutional Banking, and International Wealth and Premier Banking. The Hong Kong segment is involved in the retail banking and wealth and commercial banking of HSBC Hong Kong and Hang Seng Bank. The UK segment engages in UK retail banking and wealth, as well as first direct and M&S Bank, UK Commercial Banking, and HSBC Innovation Bank. The Corporate and Institutional Banking segment is involved in transaction banking and capital markets. The International Wealth and Premier Banking segment is involved in the business comprising premier banking outside of Hong Kong and the UK, its private bank, asset management, and insurance businesses. The company was founded in 1865 and is headquartered in London, the United Kingdom.
HSBC passes 5 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Smart money ownership
9 of the funds we track reported a position in their latest SEC 13F filing. Largest first:
- Ken Fisher, Fisher Asset Management, LLC$1.50B · 0.5% of book
- Lewis Sanders, Sanders Capital, LLC$231.55M · 0.3% of book
- Renaissance Technologies, RENAISSANCE TECHNOLOGIES LLC$43.23M · 0.1% of book
- Marshall Wace, MARSHALL WACE, LLP$27.92M · 0.0% of book
- Cliff Asness, AQR CAPITAL MANAGEMENT LLC$27.11M · 0.0% of book
A word of warning on reading these figures: a 13F reports the market value of a holding, so a fund that traded nothing at all still appears to have sold when the price fell. We found 102 companies where the standard reading gives the opposite answer. Only the share count is honest.
Common questions
Is HSBC Holdings plc (HSBC) undervalued?
Against our discounted cash flow estimate of USD75.89, HSBC at USD100.52 is 25% above fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
Which funds own HSBC?
9 of the institutions we track reported a position in HSBC in their most recent SEC 13F filing. A 13F is filed up to 45 days after quarter end, so it tells you what a fund held then, not what it holds now.
What is HSBC's P/E ratio?
HSBC trades at 16.2 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
The full research page for HSBC, with financial statements, ownership detail, peer comparison and alerts, is free inside the app.
Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.