HSBC Holdings PLC ADR
NYSE: HSBC · FINANCIAL SERVICES · BANKS - DIVERSIFIED
Updated 2026-04-30
HSBC Holdings PLC ADR (HSBC) Stock Valuation Analysis
Fair value estimate, historical valuation range, and quality signals for HSBC.
Valued
Fundamentals support the current valuation. Strong combination of growth, quality, and price.
HSBC historical valuation range
Where current P/E sits in HSBC's own 5Y range.
HSBC intrinsic value (DCF)
DCF-based fair value estimate vs current market price.
Standard discounted cash flow models produce unreliable output for unprofitable or near-breakeven companies. Revenue-based multiples such as P/S and EV/Sales, combined with the historical valuation position above, give a more reliable read for this stock.
Intrinsic value calculated using discounted cash flow (DCF) model based on projected free cash flows, discount rate, and terminal growth assumptions. A positive margin of safety indicates the current price is below estimated fair value, providing a cushion against estimation error.
HSBC valuation signals
Quick-read green flags, caution flags, and risks based on current metrics.
P/E Ratio — History
Current: 14.95x
P/S Ratio — History
Current: 4.92x
Is HSBC overvalued in 2026?
HSBC Holdings PLC ADR (HSBC) currently trades at $91.86 per share with a market capitalization of $310,763,061,000.00. Based on our multi-factor framework, the stock looks attractively valued with a Smart Value Score of 77/100. This score blends growth quality, financial health, and price attractiveness into a single institutional-grade read.
The stock trades at a P/E ratio of 14.9x, above its 5-year median of 13.0x. The PEG ratio of 1.19 points to a price that reasonably reflects expected earnings growth.
Looking at its own history, HSBC is currently trading more expensive than 86% of the last 5Y on P/E. This places it in the 86th percentile of its historical range, a zone where forward returns have typically been muted.
A standard DCF model does not produce reliable output for HSBC under current conditions. For unprofitable or near-breakeven companies, revenue-based multiples such as EV/Sales and historical P/S percentile are more informative than intrinsic value calculations.
The Piotroski F-Score of 4/9 puts financial quality in a middling range, neither a standout strength nor an obvious red flag.
Bottom line: HSBC looks attractively valued on our framework, with a Smart Value Score of 77/100. The combination of reasonable price, healthy growth, and quality fundamentals makes it worth serious consideration.
Frequently asked questions
Is HSBC overvalued in 2026?
Based on a Smart Value Score of 77/100, HSBC is not overvalued. Fundamentals support the current price and offer reasonable margin of safety.
What is HSBC's fair value?
Standard DCF is unreliable for HSBC due to its current profitability profile. Revenue-based approaches such as EV/Sales or historical P/S percentile are more informative for this stock.
What P/E ratio does HSBC trade at?
HSBC trades at a P/E of 14.9x on trailing twelve-month earnings, compared to its 5-year median of 13.0x.
Is HSBC a buy based on valuation?
WallStSmart does not issue buy or sell recommendations. Our Smart Value Score of 77/100 reflects the combined read on growth, quality, and price. The profile skews favorable for long-term accumulation.
How does HSBC's valuation compare to its history?
On P/E, HSBC currently sits in the 86th percentile of its own 5Y range. That is historically expensive relative to where it has traded over the period.
What is HSBC's Smart Value Score?
HSBC's Smart Value Score is 77/100. The Smart Value Score is a proprietary WallStSmart metric blending growth quality, financial health, and valuation attractiveness into a single 0-100 read. Scores above 75 are rare and indicate strong multi-factor alignment.