HSBC Holdings plc (HSBC) — Fundamental Analysis & Key Financial Ratios

Kaplio overview: HSBC Holdings plc

Market cap $297B · 52 weeks $68 – $108 (19 % below the high) · P/E 12.5× · 2027 expected P/E 9.2× · Dividend 4.3 % · Next earnings February 24, 2027 · expected EPS $1.67 · Closing price, Oct 29 · accounts published Oct 27.

• Valuation: P/B 1.5× (fairly priced).
• Business: ROTCE 11.6 % (fair).
• Balance sheet: Capital/assets 6.1 % (fragile).
• Earnings: 6 of 8 (on track).

What would it be worth at its usual multiples?

At a P/B justified by its ROTCE del 11,6 % (1.3×) $75 (-13 %); at its peers' median (1.4×) $83 (-4 %). Implied price from applying the reference multiples to today's earnings (or book value, or FFO) per share. Not a fair value: it is where the stock would trade at its usual multiples.

What matters in banking: 1 of 5 pass

• ROA 0.8 %, fails.
• Equity / Assets (Tier 1 proxy) 6.1 %, fails.
• ROTCE 11.6 %, borderline.
• P/B (Price / Book) 1.5×, borderline.
• Sustainable dividend yield 4.3 %, passes.

Against its peers (reference peers) — HSBC Holdings plc: P/E 12.5×; P/B 1.5×; ROE 14.2 %; $297B. Royal Bank of Canada (P/E 18.4×; P/B 2.8×; ROE 16.1 %; $286B), Wells Fargo & Company (P/E 11.9×; P/B 1.4×; ROE 12.9 %; $255B), Bank of America Corporation (P/E 12.2×; P/B 1.2×; ROE 10.7 %; $354B).

Expensive or cheap against its last ten fiscal years?

Precio / valor contable at each close: today 1.5× · median 0.8× · minimum 0.4× · maximum 1.9× · cheap below 0.7× · expensive above 1.1×. It has been cheaper than today 92% of the time over its last ten fiscal years.

Dividend

tight (only raised recently) · Yield 4.3 % ($3.32 per ADS in 2025) · 5-year growth +46 % a year · Free cash flow coverage payout 52 % · With $1,000 invested today you'd collect $43.00 a year ($3.58 a month).