HSBC Holdings Valuation

HSBC Stock  USD 39.36  0.37  0.95%   
At this time, the firm appears to be fairly valued. HSBC Holdings PLC owns a latest Real Value of $38.57 per share. The recent price of the firm is $39.36. Our model calculates the value of HSBC Holdings PLC from reviewing the firm fundamentals such as Operating Margin of (0.12) %, return on asset of 0.0082, and Current Valuation of 321.69 B as well as analyzing its technical indicators and probability of bankruptcy. In general, most investors encourage purchasing undervalued equities and exiting overvalued equities since, in the future, asset prices and their ongoing real values will blend.
Fairly Valued
Today
39.36
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.
Our valuation method for HSBC Holdings PLC is useful when determining the fair value of the HSBC stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of HSBC Holdings. 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  39.36 Real  38.57 Hype  39.36 Naive  39.74
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, assets, liabilities, 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, news, and other external factors that may influence HSBC Holdings' stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
38.56
Real Value
40.21
Upside
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:
Bollinger
Band Projection (param)
LowerMiddle BandUpper
36.2338.1139.98
Details
Hype
Prediction
LowEstimatedHigh
37.7239.3641.00
Details
Potential
Annual Dividend
LowForecastedHigh
1.261.331.41
Details

HSBC Holdings Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining HSBC Holdings's current stock value. Our valuation model uses many indicators to compare HSBC Holdings value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across HSBC Holdings competition to find correlations between indicators driving HSBC Holdings's intrinsic value. More Info.
HSBC Holdings PLC is one of the top stocks in price to sales category among related companies. It is one of the top stocks in beta category among related companies totaling about  0.23  of Beta per Price To Sales. The ratio of Price To Sales to Beta for HSBC Holdings PLC is roughly  4.43 . Comparative valuation analysis is a catch-all model that can be used if you cannot value HSBC Holdings by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for HSBC Holdings' Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the HSBC Holdings' earnings, one of the primary drivers of an investment's value.
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 the current worth of HSBC Holdings PLC on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of HSBC Holdings PLC. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of HSBC Holdings PLC based exclusively on its fundamental and basic technical indicators. By analyzing HSBC Holdings's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of HSBC Holdings's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of HSBC Holdings. We calculate exposure to HSBC Holdings's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to HSBC Holdings's related companies.
HSBC Holdings plc provides banking and financial services worldwide. HSBC Holdings plc was founded in 1865 and is headquartered in London, the United Kingdom. HSBC Holdings operates under BanksDiversified classification in the United States and is traded on New York Stock Exchange. It employs 219697 people.

8 Steps to conduct HSBC Holdings' Valuation Analysis

Company's valuation is the process of determining the worth of any company in monetary terms. It estimates HSBC Holdings' potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct HSBC Holdings' valuation analysis, follow these 8 steps:
  • Gather financial information: Obtain HSBC Holdings' financial statements, including balance sheets, income statements, and cash flow statements.
  • Determine HSBC Holdings' revenue streams: Identify HSBC Holdings' primary sources of revenue, including products or services offered, target markets, and pricing strategies.
  • Analyze market data: Research HSBC Holdings' industry and market trends, including the size of the market, growth rate, and competition.
  • Establish HSBC Holdings' growth potential: Evaluate HSBC Holdings' management, business model, and growth potential.
  • Determine HSBC Holdings' financial performance: Analyze its financial statements to assess its historical performance and future potential.
  • Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
  • Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate HSBC Holdings' estimated value.
  • Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Note: This is a general outline, and different approaches and methods may be used depending on the type and size of the company being valued. We also recomment to seek professional assistance to ensure accuracy.
HSBC Holdings' stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether HSBC Holdings' value is low or high relative to the company's performance and growth projections. Determining the market value of HSBC Holdings can be done in different ways, such as multiplying its stock price by its outstanding shares.
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

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. Note, investing in growth stocks can be very risky. If the company such as HSBC Holdings does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Common Stock Shares Outstanding3.9 B
Quarterly Earnings Growth Y O Y1.896
Forward Price Earnings6.6181
When determining whether HSBC Holdings PLC offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of HSBC Holdings' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Hsbc Holdings Plc Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Hsbc Holdings Plc Stock:
Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in HSBC Holdings PLC. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in bureau of labor statistics.
Note that the HSBC Holdings PLC information on this page should be used as a complementary analysis to other HSBC Holdings' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.

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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Is HSBC Holdings' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of HSBC Holdings. If investors know HSBC will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about HSBC Holdings listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of HSBC Holdings PLC is measured differently than its book value, which is the value of HSBC that is recorded on the company's balance sheet. Investors also form their own opinion of HSBC Holdings' value that differs from its market value or its book value, called intrinsic value, which is HSBC Holdings' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because HSBC Holdings' market value can be influenced by many factors that don't directly affect HSBC Holdings' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between HSBC Holdings' value and its price as these two are different measures arrived at by different means. Investors typically determine if HSBC Holdings is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, HSBC Holdings' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.