HSBC Holdings (HSHD) Fair Value & Analysis
Financial Services · SG · Market cap 85.7B SGD
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.
Price vs Fair Value (21 months)
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.
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.
All 4 models by family
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
More key figures
Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 61 · Market factors (momentum, volatility) 87
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.
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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.
Valuation Multiples vs Banks - Diversified median · lower = cheaper
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.
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
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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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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