HSBC Holdings PLC
LSE:HSBA
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HSBC Holdings PLC
LSE:HSBA
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NYSE:RAL
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Intrinsic Value
The intrinsic value of HSBC Holdings PLC (HSBA) under the Base Case is 721.21 GBX per share.
Compared with the current market price of 1 290.4 GBX, the stock appears
Overvalued by 44% .
The intrinsic value is calculated using the DCF method. The model assumes HSBC's net margin jumps to 38% in 2026, higher than in any of the last six years, then gradually declines. If its margin stayed at its five-year average of 24%, the estimate would be about 580p. Margins affect only the forecast years; the value of the years after 2031 is based on revenue.
Do our valuations actually work? See backtest results .
Cheap or expensive for this stock?
This block shows whether today’s valuation is cheap or expensive compared with the stock’s own history, and what happened after similar valuations in the past.
We compare the gap between the stock’s price and our estimated value over time.
- Undervalued can still be historically expensive. The stock may trade below our estimated value, but usually offer an even bigger discount.
- Overvalued can still be historically cheap. The stock may trade above our estimated value, but usually carry an even higher premium.
Market expectations can differ from our model, which may not fully capture everything affecting the price. That is why some stocks regularly trade above our estimated value and others below it.
The scale and chart show how today’s valuation compares with the past. The cards summarize past returns and waiting times until the stock stopped being cheap or expensive. This can happen because the price changed, our estimated value changed, or both.
Only completed periods are included. These are past results, not forecasts. The usual historical range does not necessarily mean fair value.
Fundamental Analysis
What HSBC Does
HSBC Holdings PLC is a global bank that takes deposits, makes loans, and handles payments for people, businesses, and institutions. It also provides wealth management, trade finance, cash management, foreign exchange, and investment banking services. Its main customers range from everyday savers and mortgage borrowers to multinational companies, banks, and governments.
- Headquarters
- United Kingdom UK
- Employees
- 208 844
- IPO date
- Jun 11, 1992
HSBC Holdings has no economic moat
Customers can obtain similar banking services elsewhere, and HSBC’s international reach does not make those alternatives unavailable. Its established relationships offer some protection, but do not consistently prevent rivals from competing for customers through better prices or service.
Read the full moat analysis
The intrinsic value for HSBC Holdings PLC (HSBA) under the Base Case is 721.21 GBX.
Compared with the current market price of 1 290.4 GBX, the stock appears Overvalued by 44% .