HSBC Holdings PLC (HSBC) Valuation
Historical valuation analysis based on 1279 data points (2021-09-14 to 2026-10-16)
Established in 1865 in Hong Kong, London-based HSBC is one of the largest banks in the world, with assets of USD 3 trillion and over 40 million customers worldwide. It operates in over 50 countries...
HSBC Holdings PLC (HSBC) currently trades at a P/E ratio of 15.35 (historical range: 3.98–17.51, median: 9.67), placing it at the 94th percentile — expensive relative to its history, P/S ratio of 5.12 (range: 1.33–5.84, 94th percentile — expensive relative to its history).
Over the historical period (2021-09-14 to 2026-10-16), HSBC Holdings PLC's P/E ratio has expanded by 17% over the observed period (from an average of 8.9 to 10.4).
HSBC Holdings PLC trades well above its own historical valuation range across most metrics.
Historical Valuation Metrics
| Metric | Current | Median | %ile | Assessment |
|---|---|---|---|---|
| P/E Ratio | 15.35 | 9.67 | 94th | expensive relative to its history |
| P/S Ratio | 5.12 | 2.97 | 94th | expensive relative to its history |
| FCF Yield | 11.14% | 72.53% | 0th | expensive relative to its history |
HSBC Holdings PLC (HSBC) Valuation & P/E History
HSBC Holdings PLC (HSBC) is a US-listed stock operating in the Financial Services sector currently trading at $94.30 with a market capitalization of $322.5 billion. This page provides historical valuation analysis for HSBC based on 1279 data points covering 2021-09-14 to 2026-10-16. The P/E ratio of 15.35 is above the historical median of 9.67, placing HSBC at the 94th percentile of its valuation range. The P/S ratio of 5.12 compares to a median of 2.97.
HSBC Valuation Metrics & Historical Range
The valuation table above shows HSBC Holdings PLC's current and historical valuation multiples, including P/E ratio, P/S ratio, EV/EBITDA, FCF yield, and dividend yield. Each metric is compared to its own historical range to determine whether HSBC is currently trading above or below its typical valuation levels.
- P/E ratio: Price-to-earnings measures how much investors pay per dollar of earnings. A P/E above the historical median suggests HSBC is expensively valued; below the median suggests it is cheap.
- P/S ratio: Price-to-sales is useful for companies with volatile or negative earnings. Lower P/S relative to history may indicate value.
- EV/EBITDA: Enterprise value to EBITDA adjusts for debt and cash, providing a capital-structure-neutral valuation measure for HSBC Holdings PLC.
- FCF yield: Free cash flow yield shows the cash return relative to market price. Higher yields may indicate undervaluation.
Is HSBC Overvalued or Undervalued?
HSBC Holdings PLC trades well above its own historical valuation range across most metrics. The overall valuation percentile of 94 combines P/E, P/S, and EV/EBITDA percentiles into a single measure of how expensive HSBC is relative to its own history. A percentile below 25 suggests the stock may be undervalued, while a percentile above 75 suggests it may be overvalued.
However, valuation is only one factor in investment decisions. A stock can remain "overvalued" for years if growth accelerates, or "undervalued" if the business deteriorates. Always combine valuation analysis with financial statement analysis and the full HSBC analysis page for a complete picture.
Valuation data is computed from historical price and fundamental data via Polygon.io and Finnhub.HSBC trades on NYSE. This page is for informational purposes only and is not financial advice.