30 years of historical data (1995–2024) · Financial Services · Banks - Diversified
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
HSBC Holdings plc trades at 15.0x earnings, 24% above its 5-year average of 12.1x, sitting at the 52nd percentile of its historical range. Compared to the Financial Services sector median P/E of 13.8x, the stock trades at a premium of 9%. On a free-cash-flow basis, the stock trades at 5.2x P/FCF, 74% above the 5-year average of 3.0x.
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $319.8B | $182.9B | $158.9B | $124.6B | $122.4B | $104.9B | $158.2B | $164.3B | $207.3B | $159.5B | $154.1B |
| Enterprise Value | $277.7B | $140.7B | $94.5B | $-21259248000 | $-76371940000 | $155.0B | $128.3B | $103.4B | $104.4B | $113.4B | $161.0B |
| P/E Ratio → | 15.03 | 7.98 | 7.11 | 8.66 | 9.73 | 27.27 | 26.06 | 13.05 | 21.52 | 114.80 | 12.33 |
| P/S Ratio | 2.23 | 1.28 | 1.23 | 1.64 | 1.66 | 1.35 | 1.67 | 1.99 | 2.71 | 2.14 | 1.77 |
| P/B Ratio | 1.79 | 0.95 | 0.83 | 0.67 | 0.59 | 0.51 | 0.82 | 0.85 | 1.05 | 0.87 | 0.78 |
| P/FCF | 5.21 | 2.98 | 4.49 | 5.66 | 1.22 | 0.59 | 6.06 | 47.97 | — | 2.38 | — |
| P/OCF | 4.90 | 2.80 | 4.06 | 4.71 | 1.17 | 0.58 | 5.32 | 25.40 | — | 2.31 | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
HSBC Holdings plc's enterprise value stands at 7.6x EBITDA, 29% above its 5-year average of 5.9x. The Financial Services sector median is 11.1x, placing the stock at a 31% discount on an enterprise-value basis.
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 0.98 | 0.73 | -0.28 | -1.03 | 2.00 | 1.36 | 1.25 | 1.37 | 1.52 | 1.85 |
| EV / EBITDA | 7.63 | 3.87 | 2.79 | -1.02 | -3.29 | 11.06 | 5.38 | 4.74 | 5.49 | 9.20 | 7.65 |
| EV / EBIT | 8.59 | 4.35 | 3.11 | -1.25 | -4.04 | 17.66 | 9.61 | 5.20 | 6.08 | 15.94 | 8.53 |
| EV / FCF | — | 2.29 | 2.67 | -0.97 | -0.76 | 0.87 | 4.91 | 30.20 | — | 1.69 | — |
Margins and return-on-capital ratios measuring operating efficiency
HSBC Holdings plc earns an operating margin of 22.5%, roughly in line with the Financial Services sector average. ROE of 12.5% is modest. ROIC of 4.6% represents below-average returns on invested capital versus a sector median of 5.4%.
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 47.0% | 47.0% | 49.8% | 70.5% | 86.9% | 81.7% | 74.4% | 76.9% | 83.2% | 83.1% | 83.2% |
| Operating Margin | 22.5% | 22.5% | 23.4% | 22.4% | 25.6% | 11.3% | 14.1% | 24.0% | 22.4% | 9.5% | 21.6% |
| Net Profit Margin | 16.7% | 16.7% | 18.2% | 20.4% | 18.8% | 6.8% | 7.8% | 16.6% | 14.1% | 3.3% | 15.5% |
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 12.5% | 12.5% | 12.5% | 7.9% | 6.8% | 2.6% | 3.8% | 7.0% | 5.7% | 1.3% | 6.8% |
| ROA | 0.8% | 0.8% | 0.8% | 0.5% | 0.5% | 0.2% | 0.3% | 0.5% | 0.4% | 0.1% | 0.5% |
| ROIC | 4.6% | 4.6% | 4.5% | 2.6% | 2.4% | 1.5% | 3.2% | 5.1% | 4.7% | 1.8% | 4.5% |
| ROCE | 2.6% | 2.6% | 1.4% | 0.6% | 0.6% | 0.3% | 0.5% | 0.8% | 0.7% | 0.3% | 0.8% |
Solvency and debt-coverage ratios — lower is generally safer
HSBC Holdings plc carries a Debt/EBITDA ratio of 6.7x, which is highly leveraged (62% above the sector average of 4.1x). The company holds a net cash position — cash of $284.5B exceeds total debt of $242.3B, providing substantial financial flexibility for buybacks, acquisitions, or weathering downturns. Interest coverage of just 0.4x is concerning — the company has limited headroom to absorb earnings volatility before struggling with debt service.
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 1.26 | 1.26 | 2.22 | 1.10 | 1.91 | 1.85 | 0.67 | 0.55 | 0.43 | 0.48 | 0.57 |
| Debt / EBITDA | 6.66 | 6.66 | 12.62 | 9.77 | 17.05 | 27.03 | 5.41 | 4.94 | 4.43 | 7.05 | 5.30 |
| Net Debt / Equity | — | -0.22 | -0.33 | -0.79 | -0.96 | 0.24 | -0.16 | -0.31 | -0.52 | -0.25 | 0.04 |
| Net Debt / EBITDA | -1.16 | -1.16 | -1.90 | -6.97 | -8.57 | 3.58 | -1.25 | -2.79 | -5.41 | -3.74 | 0.33 |
| Debt / FCF | — | -0.69 | -1.82 | -6.62 | -1.97 | 0.28 | -1.15 | -17.77 | — | -0.69 | — |
| Interest Coverage | 0.43 | 0.43 | 0.47 | 0.76 | 1.95 | 0.62 | 0.55 | 1.04 | 1.34 | 0.56 | 1.29 |
Net cash position: cash ($284.5B) exceeds total debt ($242.3B)
Short-term solvency ratios and asset-utilisation metrics
The current ratio of 0.16x is below 1.0, meaning current liabilities exceed current assets — though the company's $284.5B cash position helps mitigate short-term liquidity concerns. The current ratio has declined from 28.34x to 0.16x over the past 3 years.
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.16 | 0.16 | 0.18 | 28.34 | 40.36 | 32.58 | 16.36 | 17.77 | 2.68 | 19.31 | 11.96 |
| Quick Ratio | 0.16 | 0.16 | 0.18 | 28.34 | 40.36 | 32.58 | 16.36 | 17.77 | 2.68 | 19.31 | 11.96 |
| Cash Ratio | 0.16 | 0.16 | 0.17 | 28.34 | 40.36 | 31.59 | 14.73 | 14.93 | 1.87 | 12.35 | 9.41 |
| Asset Turnover | — | 0.05 | 0.04 | 0.03 | 0.02 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 | 0.04 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | — | — | — | — | — | — | — | — | — | — |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
HSBC Holdings plc returns 8.7% to shareholders annually — split between a 5.0% dividend yield and 3.7% buyback yield. The payout ratio of 71.3% is elevated — while still covered by earnings, there is limited headroom for dividend increases. The earnings yield of 6.7% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 5.0% | 9.4% | 7.7% | 5.6% | 5.2% | 1.9% | 6.2% | 6.6% | 4.3% | 5.7% | 5.3% |
| Payout Ratio | 71.3% | 71.3% | 51.8% | 44.8% | 45.9% | 38.7% | 132.4% | 78.4% | 83.4% | 369.4% | 60.6% |
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 6.7% | 12.5% | 14.1% | 11.6% | 10.3% | 3.7% | 3.8% | 7.7% | 4.6% | 0.9% | 8.1% |
| FCF Yield | 19.2% | 33.6% | 22.3% | 17.7% | 82.3% | 170.4% | 16.5% | 2.1% | — | 42.0% | — |
| Buyback Yield | 3.7% | 6.5% | 4.0% | 1.9% | 1.7% | 0.2% | 0.6% | 1.2% | 1.5% | 1.6% | 0.0% |
| Total Shareholder Yield | 8.7% | 15.9% | 11.7% | 7.5% | 6.9% | 2.1% | 6.8% | 7.8% | 5.8% | 7.3% | 5.3% |
| Shares Outstanding | — | $3.7B | $3.9B | $4.0B | $4.1B | $4.0B | $4.0B | $4.0B | $4.0B | $4.0B | $3.9B |
Compare HSBC with 5 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
| HSBCYou | $320B | 15.0 | 7.6 | 5.2 | 47.0% | 22.5% | 12.5% | 4.6% | 6.7 |
| SAN | $181B | 13.6 | 18.8 | — | 39.4% | 14.6% | 11.9% | 2.8% | 21.7 |
| BBVA | $131B | 11.7 | 10.1 | — | 100.0% | 56.6% | 17.4% | 6.1% | 7.4 |
| BCS | $84B | 11.0 | 28.5 | — | 100.0% | 34.7% | 9.5% | 1.8% | 46.9 |
| ING | $83B | 11.5 | 20.4 | — | 94.3% | 39.7% | 12.4% | 3.1% | 18.5 |
| NWG | $66B | 11.6 | 3.0 | 70.9 | 51.3% | 21.7% | 12.5% | 4.6% | 9.1 |
| Financial Services Median | — | 13.8 | 11.1 | 11.2 | 60.2% | 21.9% | 9.1% | 5.4% | 4.1 |
Peers based on L4 peer group classification. Compare multiple stocks →
Includes 30+ ratios · 30 years · Updated daily
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View ValuationSee how HSBC stacks up against sector leader Banco Santander, S.A..
Start ComparisonHSBC Holdings plc's current P/E ratio is 15.0x. The historical average is 21.3x. This places it at the 52th percentile of its historical range.
HSBC Holdings plc's current EV/EBITDA is 7.6x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 15.1x.
HSBC Holdings plc's return on equity (ROE) is 12.5%. The historical average is 10.6%.
Based on historical data, HSBC Holdings plc is trading at a P/E of 15.0x. This is at the 52th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
HSBC Holdings plc's current dividend yield is 4.96% with a payout ratio of 71.3%.
HSBC Holdings plc has 47.0% gross margin and 22.5% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
HSBC Holdings plc's Debt/EBITDA ratio is 6.7x, indicating high leverage. A ratio above 4x may signal elevated financial risk.