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BOC Hong Kong Holdings Ltd (2388) Fair Value & Analysis

Financial Services · HK · Market cap HK$447B (≈ $57.0B) · ISIN HK2388011192

What is BOC Hong Kong Holdings Ltd really worth?

BH BOC Hong Kong Holdings Ltd 2388 · HK
PriceHK$52.85
Fair ValueHK$48.24
Upside−8.7%
Quality50/100

A solid business, currently priced close to our fair value of HK$48.24.

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Strengths

Highly profitable · 58.4% net margin
Wide moat 70/100

Risks

!Weak Growth (revenue 5y −6.2 %/yr)
!Low debt · negative free cash flow
!Mixed vs. peers (6/13)
!Evidence only medium, so the estimate is less certain
!Weak on valuation: 22 out of 100

For context

·4.33% dividend yield
Evidence: Medium Range HK$36.18 – HK$60.29

Fair value as of: Aug 21, 2026

From 6 valuation models · updated 15 days ago

Share price +4.3% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The price sits close to our fair value, market and models broadly agree here, little valuation tension.
  • For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.

Price vs Fair Value (5 years)

HK$52.85 HK$15.17 Fair Value HK$48.24 Apr 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 21, 2026.

How to read this chart

60‑month range HK$15.17 – HK$52.85 · fair‑value band HK$36.18 – HK$60.29 · the HK$52.85 price screens above the HK$48.24 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 21, 2026.

Full chart & analysis →

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Analysis

BOC Hong Kong Holdings Ltd (2388) currently trades at HK$52.85, while our model-based Fair Value estimate is HK$48.24, implying the stock looks roughly 9.6% fairly valued today. The Quality Score stands at 50/100 (solid quality), in the Financial Services sector. Bull case: the Multiples group reads highest at a median of HK$47.47 per share, and 0 of the 6 models we run sit above the HK$52.85 price. Bear case: the Asset-Based group reads lowest at HK$22.72, and 6 of the 6 models stay below the price. Evidence for this calculation is medium.

Over the trailing twelve months, BOC Hong Kong Holdings Ltd generated revenue of HK$68.7B at a net margin of 58.4%. Revenue declined 2.7% year over year. It earns a return on equity of 11.7%. Net debt stands at HK$7.5B. Fundamentals as of Aug 21, 2026

Our scenario range runs from HK$36.18 (bear case) to HK$60.29 (bull case); at HK$52.85, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades near its 52-week high and 66% above its 52-week low, currently above its 200-day average. For context, the median of 10 Financial Services peers we cover trades at −10% fair-value upside, at −9%, 2388 screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Model 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. Evidence
Highest evidence
Residual Income best evidence HK$31.35 HK$36.20 HK$62.18 72
DDM Multi-Stage HK$22.02 HK$38.70 HK$50.10 64
Gordon GGM HK$22.02 HK$48.07 HK$80.88 63
All 6 models by family
Dividend Discount
Gordon GGM HK$22.02 HK$48.07 HK$80.88 63
DDM Multi-Stage HK$22.02 HK$38.70 HK$50.10 64
Multiples
P/E Multiple HK$37.00 HK$49.33 HK$61.66 63
P/B Multiple HK$35.61 HK$47.47 HK$59.34 55
Asset-Based
NCAV (Graham) HK$16.96 HK$22.72 HK$33.91 54
Economic Profit
Residual Income best evidence HK$31.35 HK$36.20 HK$62.18 72

Widest divergence: Multiples (HK$47.47) versus Asset-Based (HK$22.72). Highest evidence: Residual Income (72).

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Key figures & financial health

P/E ratio 11.2 as of Jul 2, 2026
P/S ratio 6.52 P/E × margin
EPS (TTM) HK$2.10 price ÷ EPS = P/E 11.2
Dividend yield 4.3% payout 109%
Net margin 58.4% FY2025
Return on equity 11.7% TTM
More key figures
Profitability
Return on assets (EBIT) 1.0% avg 5y
Operating margin 69.1% TTM
Growth
Revenue (TTM) HK$68.7B TTM
Revenue growth (YoY) −2.7% 3y avg +9.8%
EPS growth (YoY) −1.2%
Balance sheet & cash flow
Free cash flow −HK$88.6B FY2025
Net debt HK$7.5B FY2025

Figures from reported company fundamentals · as of Aug 21, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 50/100

Of which business quality 46 · Market factors (momentum, volatility) 86

Profitability 35
Margins and returns on capital today
Quality Growth 60
Are margins and returns improving?
Cashflow 0
Earnings quality: real cash, not paper profit
Fin. Strength 50
Balance sheet, leverage, solvency risk
Investment 82
Disciplined investing over empire-building
Low Volatility 91
Calm price path (market factor)
Momentum 76
Price trend over the last 3–12 months (market factor)
52W Momentum 96
Distance to the 52-week high (market factor)
Net Issuance 82
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

BOC Hong Kong (Holdings) Limited, an investment holding company, provides banking and related financial services to corporate and individual customers in Hong Kong, China, and internationally. The company operates through four segments: Personal Banking, Corporate Banking, Treasury, and Insurance.

Full company description

BOC Hong Kong (Holdings) Limited, an investment holding company, provides banking and related financial services to corporate and individual customers in Hong Kong, China, and internationally. The company operates through four segments: Personal Banking, Corporate Banking, Treasury, and Insurance. It offers savings, current, and time deposit accounts, as well as monthly deposit plans; mortgage plans; corporate deposits, and payroll and e-cheque services. The company also offers cross-border financial and remittance services; and securities, funds, foreign exchange services, precious metals and FX margin services, currency linked investments, bonds, market information services, monthly savings plans, and structured products, as well as business and personal loans. In addition, it provides business and accident protection, medical, travel and leisure, family protection, RMB, and personal life insurance products; and credit cards. Further, the company offers safe deposit box, e-bill, and payment services; personal and corporate RMB, and RMB clearing bank services; business comprehensive, property, liability, group, and retailer comprehensive insurance plans; small business, asset-pledge, and syndicated loans; accounts receivable, machinery and equipment, SME green, and project financing; business banking, trade finance and services, investment, treasury, corporate collection and payment, e-commerce, and card services; and custody and cash management services. Additionally, it provides wealth management and overdraft services; mandatory provident fund schemes; and private and corporate banking services, as well as internet, phone, and mobile banking services; and trade related products and other credit facilities. BOC Hong Kong (Holdings) Limited was founded in 1917 and is based in Central, Hong Kong. BOC Hong Kong (Holdings) Limited is a subsidiary of BOC Hong Kong (BVI) Limited.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

BOC Hong Kong Holdings Ltd reported revenue of HK$68.7B in FY2025 versus HK$76.9B in FY2021, a compound −2.8%/yr. Reported net income was HK$40.1B in FY2025, compounding +13.3%/yr from FY2021.

Growth Quality 19/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
HK$68.7B
Latest YoY
−4.3%
Avg. revenue growth/yr (3Y) 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.
+9.8%
Avg. revenue growth/yr (5Y) 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.
−6.2%
Avg. revenue growth/yr (25Y) 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.
−2.5%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
+11.9% (7.6 + 4.3)
Revenue −2.8%/yr
FY21 HK$76.9B
FY22 HK$51.9B
FY23 HK$59.2B
FY24 HK$71.8B
FY25 HK$68.7B
Net income +13.3%/yr
FY21 HK$24.3B
FY22 HK$27.3B
FY23 HK$32.7B
FY24 HK$38.2B
FY25 HK$40.1B
Character of growth · EPS growth decomposed (2014-2025) +4.3 % p.a.
Revenue per share +5.9 %

of which total revenue +5.9 % · buybacks/dilution +0.0 %

EBIT margin +0.2 %
Tax rate −0.1 %
Residual (interest, one-offs) −1.6 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "BOC Hong Kong Holdings Ltd Fair Value". https://www.fairvalue-calculator.com/stock/2388

Recent news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

Banks - Regional · 1071 stocks

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.

Quality Score 54 · Below median
Fair Value upside −9% · Below median
Return on equity (TTM) 12% · Above median
Return on assets 1% · Below median
Net margin (TTM) 58% · Top 25%
Operating margin (TTM) 69% · Top 25%
Revenue growth −3% · Bottom 25%
Dividend yield (TTM) 4.3% · Top 25%
Debt / equity 0.23× · Lower than median

Valuation Multiples vs Banks - Regional median · lower = cheaper

P/E (TTM) 11.2× · Cheaper than median
P/B 1.25× · Pricier than median
P/S (TTM) 6.51× · Pricier than 75% of peers
PEG 2.35× · Pricier than 75% of peers

Strength profile in five axes (Snowflake)

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE22 · sector 33
FUTURE0 · sector 45
PAST47 · sector 41
HEALTH89 · sector 85
DIVIDEND87 · sector 51

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Banks - Regional stocks, each showing price versus our Fair Value estimate (as of Aug 21, 2026).

Stock Price Fair Value vs Fair Value
DBS Group D05 75.65 SGD 40.48 SGD −46%
China Merchants Bank Co 3968 HK$47.96 HK$76.51 +60%
Intesa Sanpaolo S.p.A ISP €6.78 €5.66 −17%
HDFC Bank Limited HDB $23.17 $24.12 +4%
BNP Paribas SA BNP €102.56 €144.64 +41%
UniCredit S.p.A UCG €84.71 €77.62 −8%
Mizuho Financial Group MFG $10.74 $9.69 −10%
ICICI Bank Limited ICICIBANK ₹1,443 ₹835.21 −42%
Oversea-Chinese Banking Corporation O39 31.07 SGD 19.80 SGD −36%
CaixaBank, S.A CABK €13.52 €8.85 −35%

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Frequently asked questions

Is BOC Hong Kong Holdings Ltd (2388) overvalued or undervalued?
As of Aug 21, 2026, our model estimates a fair value of HK$48.24 versus a price of HK$52.85, about −9% upside (fairly valued).
What is the fair value of 2388?
Our model-based fair value for BOC Hong Kong Holdings Ltd is HK$48.24 (as of Aug 21, 2026), built from audited fundamentals. The current price: HK$52.85.
What is the quality score of 2388?
BOC Hong Kong Holdings Ltd has a Quality Score of 50/100. 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 revenue of BOC Hong Kong Holdings Ltd (2388)?
BOC Hong Kong Holdings Ltd reported trailing-twelve-month revenue of about HK$68.7B (latest available figure, as of Aug 21, 2026).
What is the net profit margin of 2388?
The net profit margin of BOC Hong Kong Holdings Ltd is about 58.4%, meaning it keeps roughly 58.4% of revenue as net income. Based on the latest reported figures.
Does BOC Hong Kong Holdings Ltd pay a dividend?
BOC Hong Kong Holdings Ltd currently shows a dividend yield of about 4.33% relative to its recent price (as of Aug 21, 2026).
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