HSBC Holdings Valuation
| HSBC Stock | USD 46.89 0.21 0.45% |
At this time, the firm appears to be undervalued. HSBC Holdings PLC owns a latest Real Value of $49.35 per share. The recent price of the firm is $46.89. Our model calculates the value of HSBC Holdings PLC from reviewing the firm fundamentals such as Operating Margin of 0.49 %, current valuation of 468.18 B, and Return On Asset of 0.0081 as well as analyzing its technical indicators and probability of bankruptcy. Key fundamental drivers impacting HSBC Holdings' valuation include:
Price Book 0.8729 | Enterprise Value 468.2 B | Price Sales 2.897 | Forward PE 7.4074 | Trailing PE 7.6525 |
Undervalued
Today
Please note that HSBC Holdings' price fluctuation is very steady at this time. Calculation of the real value of HSBC Holdings PLC is based on 3 months time horizon. Increasing HSBC Holdings' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since HSBC Holdings is currently traded on the exchange, buyers and sellers on that exchange determine the market value of HSBC Stock. However, HSBC Holdings' intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 46.89 | Real 49.35 | Target 52.92 | Hype 46.93 | Naive 46.59 |
The real value of HSBC Stock, also known as its intrinsic value, is the underlying worth of HSBC Holdings PLC Company, which is reflected in its stock price. It is based on HSBC Holdings' financial performance, growth prospects, management team, or industry conditions. The intrinsic value of HSBC Holdings' stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, or news.
Estimating the potential upside or downside of HSBC Holdings PLC helps investors to forecast how HSBC stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of HSBC Holdings more accurately as focusing exclusively on HSBC Holdings' fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use HSBC Holdings' intrinsic value based on its ongoing forecasts of HSBC Holdings' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against HSBC Holdings' closest peers. If more than one evaluation category is relevant for HSBC Holdings we suggest using both methods to arrive at a better estimate.
HSBC Holdings Cash |
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HSBC Valuation Trend
Comparing HSBC Holdings' enterprise value against its market capitalization is a good way to estimate the value of HSBC Holdings PLC uage its performance over time. This information may sometimes be enough for investors to make reasonable market timing decisions.
HSBC Holdings Total Value Analysis
HSBC Holdings PLC is currently forecasted to have valuation of 468.18 B with market capitalization of 167.94 B, debt of 235.16 B, and cash on hands of 1.14 T. Please note that valuation may be misleading and is a subject to auditing or accounting errors. We encourage investors to vigilantly validate all of the HSBC Holdings fundamentals before making equity appraisal based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
468.18 B | 167.94 B | 235.16 B | 1.14 T |
HSBC Holdings Investor Information
The company has price-to-book (P/B) ratio of 0.87. Some equities with similar Price to Book (P/B) outperform the market in the long run. HSBC Holdings PLC recorded earning per share (EPS) of 6.1. The entity last dividend was issued on the 8th of November 2024. The firm had 6:1 split on the 7th of July 1999. Based on the key indicators related to HSBC Holdings' liquidity, profitability, solvency, and operating efficiency, HSBC Holdings PLC is doing better financially today then in previous quarter. It has a moderate probability of reporting better financial numbers in December.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Operating Profit Margin | 0.39 | 0.4143 |
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HSBC Holdings Asset Utilization
The concept of asset utilization usually refers to the revenue earned for every dollar of assets a company currently reports. The latest return on assets of HSBC indicates not a very effective usage of assets in November.HSBC Holdings Ownership Allocation
HSBC Holdings PLC secures a total of 3.6 Billion outstanding shares. Almost 98.3 % of HSBC Holdings outstanding shares are held by general public with 1.7 (percent) by institutions. On March 3, 2022, Senator Thomas R Carper of US Senate acquired $15k to $50k worth of HSBC Holdings PLC's common stock.HSBC Holdings Profitability Analysis
The company reported the previous year's revenue of 56.35 B. Net Income was 22.43 B with profit before overhead, payroll, taxes, and interest of 50.51 B.HSBC Holdings Past Distributions to stockholders
| 27th of September 2024 | ||
| 21st of June 2024 | ||
| 25th of April 2024 | ||
| 21st of December 2023 | ||
| 21st of September 2023 | ||
| 23rd of June 2023 | ||
| 27th of April 2023 |
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates HSBC Holdings' worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in HSBC Holdings and how it compares across the competition.
About HSBC Holdings Valuation
The stock valuation mechanism determines HSBC Holdings' current worth on a weekly basis. Our valuation model uses a comparative analysis of HSBC Holdings. We calculate exposure to HSBC Holdings's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of HSBC Holdings's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 63 B | 65.6 B | |
| Pretax Profit Margin | 0.48 | 0.46 | |
| Operating Profit Margin | 0.41 | 0.39 | |
| Net Profit Margin | 0.37 | 0.35 | |
| Gross Profit Margin | 0.90 | 0.80 |
HSBC Holdings Quarterly Retained Earnings |
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A single share of HSBC Holdings represents a small ownership stake in the entity. As a stockholder of HSBC, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
HSBC Holdings Dividends Analysis For Valuation
At present, HSBC Holdings' Dividend Payout Ratio is projected to slightly decrease based on the last few years of reporting. . The current year's Earnings Yield is expected to grow to 0.16, whereas Retained Earnings are forecasted to decline to about 104.8 B.
| Last Reported | Projected for Next Year | ||
| Dividends Paid | 12.2 B | 7.2 B | |
| Dividend Yield | 0.08 | 0.08 | |
| Dividend Payout Ratio | 0.52 | 0.57 | |
| Dividend Paid And Capex Coverage Ratio | 2.46 | 2.34 |
There are various types of dividends HSBC Holdings can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of HSBC shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from HSBC Holdings PLC directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When HSBC pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of HSBC Holdings by the value of the dividends paid out.
HSBC Holdings Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines.
| Common Stock Shares Outstanding | 3.9 B | |
| Quarterly Earnings Growth Y O Y | 0.167 | |
| Forward Price Earnings | 7.4074 |
HSBC Holdings Current Valuation Indicators
Valuation refers to the process of determining the present value of HSBC Holdings PLC and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value HSBC we look at many different elements of the entity such as HSBC's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as HSBC Holdings, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use HSBC Holdings' valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes HSBC Holdings' worth.Complementary Tools for HSBC Stock analysis
When running HSBC Holdings' price analysis, check to measure HSBC Holdings' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy HSBC Holdings is operating at the current time. Most of HSBC Holdings' value examination focuses on studying past and present price action to predict the probability of HSBC Holdings' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move HSBC Holdings' price. Additionally, you may evaluate how the addition of HSBC Holdings to your portfolios can decrease your overall portfolio volatility.
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