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HSBC Holdings (HSHD) Fair Value & Analysis

Financial Services · SG · Market cap 85.7B SGD

HH HSBC Holdings HSHD · SG
Price5.31 SGD
Fair Value10.52 SGD
Upside+98.1%
Quality68/100
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Healthy Growth
Highly profitable · 35.0% net margin
generates free cash flow
15.27% dividend yield
Ranks above peers (12/13)
Wide moat 70/100
Evidence: High Range 7.89 SGD – 13.15 SGD Share as image

Fair value as of: Aug 13, 2026

From 4 valuation models · updated yesterday

Share price +5.6% over the past month.

A solid business, screening 98% undervalued on our models.

What matters now

  • The price is below even our cautious bear case (7.89 SGD). The market is more pessimistic than our downside scenario.
  • Solid quality (68/100) at a price below fair value, the discount is the argument here, not the business quality.
  • For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.
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Price vs Fair Value (21 months)

5.53 SGD 2.17 SGD Fair Value 10.52 SGD Oct 2024 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

21‑month range 2.17 SGD – 5.53 SGD · fair‑value band 7.89 SGD – 13.15 SGD · the 5.31 SGD price screens below the 10.52 SGD fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

HSBC Holdings (HSHD) currently trades at 5.31 SGD, while our model-based Fair Value estimate is 10.52 SGD, implying the stock looks roughly 98.1% undervalued today. The Quality Score stands at 68/100 (solid quality), in the Financial Services sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, HSBC Holdings generated revenue of 63.8B SGD at a net margin of 35.0%. Revenue grew 3.3% year over year. It earns a return on equity of 11.6%. The stock trades on a trailing P/E of 3.4. Fundamentals as of Aug 13, 2026

Our scenario range runs from 7.89 SGD (bear case) to 13.15 SGD (bull case); at 5.31 SGD, the current price sits below 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 80% above its 52-week low, currently above its 200-day average. For context, the median of 10 Financial Services peers we cover trades at 78% fair-value upside, at 98%, HSHD screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted 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.

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 10.50 SGD 12.11 SGD 22.32 SGD 76
P/E Multiple 12.67 SGD 16.89 SGD 21.12 SGD 63
P/B Multiple 12.14 SGD 16.18 SGD 20.23 SGD 55
All 4 models by family
Multiples
P/E Multiple 12.67 SGD 16.89 SGD 21.12 SGD 63
P/B Multiple 12.14 SGD 16.18 SGD 20.23 SGD 55
Asset-Based
NCAV (Graham) 5.78 SGD 7.74 SGD 11.56 SGD 50
Economic Profit
Residual Income 10.50 SGD 12.11 SGD 22.32 SGD 76

Widest divergence: Multiples (16.18 SGD) versus Asset-Based (7.74 SGD). Highest evidence: Residual Income (76).

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Key figures & financial health

Revenue (TTM) 63.8B SGD
Revenue growth (YoY) +3.3%
Net margin 35.0%
Return on equity 11.6%
Free cash flow 25.1B SGD FY2025
P/E ratio 3.4
More key figures
Operating margin 50.7%
EPS (TTM) 1.57 SGD
EPS growth (YoY) +2.6%

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 68/100

Of which business quality 61 · Market factors (momentum, volatility) 87

Profitability 43
Margins and returns on capital today
Quality Growth 44
Are margins and returns improving?
Cashflow 85
Earnings quality: real cash, not paper profit
Fin. Strength 32
Balance sheet, leverage, solvency risk
Investment 80
Disciplined investing over empire-building
Low Volatility 87
Calm price path (market factor)
Momentum 78
Price trend over the last 3–12 months (market factor)
52W Momentum 100
Distance to the 52-week high (market factor)
Net Issuance 100
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.

About the company

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.

Full company description

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.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

HSBC Holdings reported revenue of 71.0B SGD in FY2025 versus 64.2B SGD in FY2021, a compound +2.5%/yr. Reported net income was 22.3B SGD in FY2025, compounding +12.5%/yr from FY2021.

Growth Quality 85/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
71.0B SGD
Latest YoY
+5.4%
Avg. 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%
Revenue +2.5%/yr
FY21 64.2B SGD
FY22 53.7B SGD
FY23 64.5B SGD
FY24 67.4B SGD
FY25 71.0B SGD
Net income +12.5%/yr
FY21 13.9B SGD
FY22 15.6B SGD
FY23 23.5B SGD
FY24 24.0B SGD
FY25 22.3B SGD

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Cite: Fair Value Calculator (2026). "HSBC Holdings Fair Value". https://www.fairvalue-calculator.com/stock/HSHD

Peer Group

Banks - Diversified · 47 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 66 · Top 25%
Fair Value upside +98% · Top 25%
Return on equity (TTM) 12% · Above median
Return on assets 1% · Above median
Net margin (TTM) 35% · Above median
Operating margin (TTM) 51% · Above median
Revenue growth 3% · Below median
Dividend yield (TTM) 15.3% · Top 25%

Valuation Multiples vs Banks - Diversified median · lower = cheaper

P/E (TTM) 3.4× · Cheaper than 75% of peers
P/B 0.34× · Cheaper than 75% of peers
P/S (TTM) 1.05× · Cheaper than 75% of peers
P/FCF 2.7× · Cheaper than median
PEG 0.18× · Cheaper than 75% of peers

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.

VALUE 100 · sector 19
FUTURE 17 · sector 25
PAST 46 · sector 42
HEALTH 0 · sector 52
DIVIDEND 100 · sector 67

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

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Banks - Diversified stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
JPMorgan Chase & Co JPM $365.18 $217.97 -40%
Bank of America Corporation BOFA C$31.78 C$18.89 -41%
China Construction Bank Corporation 601939 ¥10.24 ¥18.21 +78%
Industrial and Commercial Bank of China Limited 601398 ¥7.52 ¥14.44 +92%
Agricultural Bank of China Limited 601288 ¥6.56 ¥12.94 +97%
Bank of China Limited 601988 ¥5.83 ¥11.24 +93%
Banco Santander, S.A SAN 55.29 PLN 31.78 PLN -43%
UBS Group UBSN 939.75 MXN 565.49 MXN -40%
Barclays PLC BCSN 475.00 MXN 332.60 MXN -30%
Bank of Communications Co 601328 ¥6.91 ¥13.82 +100%

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Frequently asked questions

Is HSBC Holdings (HSHD) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of 10.52 SGD versus a price of 5.31 SGD, about +98% (undervalued).
What is the fair value of HSHD?
Our model-based fair value for HSBC Holdings is 10.52 SGD (as of Aug 13, 2026), built from audited fundamentals. The current price is 5.31 SGD.
What is the quality score of HSHD?
HSBC Holdings has a Quality Score of 68/100. 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 HSBC Holdings (HSHD)?
HSBC Holdings reported trailing-twelve-month revenue of about 63.8B SGD (latest available figure, as of Aug 13, 2026).
What is the net profit margin of HSHD?
The net profit margin of HSBC Holdings is about 35.0%, meaning it keeps roughly 35.0% of revenue as net income. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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