HSBC Holdings plc (HSBC) Financial Ratios
30 years of historical data (1996–2025) · Financial Services · Banks - Diversified
EV/EBITDA
↑
16.37
↑+125% vs avg
5yr avg: 7.28
30Y Low2.8·High37.6
P/FCF
↑
12.51
↑+147% vs avg
5yr avg: 5.07
30Y Low0.6·High91.4
P/B Ratio
↑
1.73
↑+91% vs avg
5yr avg: 0.91
30Y Low0.5·High5.0
ROE
↑
11.8%
↓+15% vs avg
5yr avg: 10.3%
30Y Low1%·High22%
Debt/EBITDA
↓
15.52
↑+26% vs avg
5yr avg: 12.32
30Y Low1.5·High27.0
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
HSBC Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
HSBC Holdings plc trades at 15.1x earnings, 63% above its 5-year average of 9.3x, sitting at the 55th percentile of its historical range. Compared to the Financial Services sector median P/E of 13.4x, the stock trades at a premium of 13%. On a free-cash-flow basis, the stock trades at 12.5x P/FCF, 147% above the 5-year average of 5.1x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $314.1B | $276.1B | $182.9B | $158.9B | $124.6B | $122.4B | $104.9B | $158.2B | $164.3B | $207.3B | $159.5B |
| Enterprise Value | $523.0B | $484.9B | $140.7B | $94.5B | $-21259248000 | $-76371940000 | $155.0B | $128.3B | $103.4B | $104.4B | $113.4B |
| P/E Ratio → | 15.11 | 13.00 | 7.98 | 7.11 | 8.66 | 9.73 | 27.27 | 26.06 | 13.05 | 21.52 | 114.80 |
| P/S Ratio | 2.12 | 1.87 | 1.28 | 1.23 | 1.64 | 1.66 | 1.35 | 1.67 | 1.99 | 2.71 | 2.14 |
| P/B Ratio | 1.73 | 1.49 | 0.95 | 0.83 | 0.67 | 0.59 | 0.51 | 0.82 | 0.85 | 1.05 | 0.87 |
| P/FCF | 12.51 | 11.00 | 2.98 | 4.49 | 5.66 | 1.22 | 0.59 | 6.06 | 47.97 | — | 2.38 |
| P/OCF | 10.55 | 9.28 | 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
HSBC EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
HSBC Holdings plc's enterprise value stands at 16.4x EBITDA, 125% above its 5-year average of 7.3x. The Financial Services sector median is 11.4x, placing the stock at a 43% premium on an enterprise-value basis.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 3.28 | 0.98 | 0.73 | -0.28 | -1.03 | 2.00 | 1.36 | 1.25 | 1.37 | 1.52 |
| EV / EBITDA | 16.37 | 15.18 | 3.87 | 2.79 | -1.02 | -3.29 | 11.06 | 5.38 | 4.74 | 5.49 | 9.20 |
| EV / EBIT | 17.45 | 17.92 | 4.35 | 3.11 | -1.25 | -4.04 | 17.66 | 9.61 | 5.20 | 6.08 | 15.94 |
| EV / FCF | — | 19.32 | 2.29 | 2.67 | -0.97 | -0.76 | 0.87 | 4.91 | 30.20 | — | 1.69 |
HSBC Profitability
Margins and return-on-capital ratios measuring operating efficiency
HSBC Holdings plc earns an operating margin of 20.3%, roughly in line with the Financial Services sector average. Operating margins have compressed from 23.4% to 20.3% over the past 3 years, signaling potential cost pressures or competitive headwinds. ROE of 11.8% is modest. ROIC of 4.0% represents below-average returns on invested capital versus a sector median of 5.7%.
Margins
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 54.6% | 54.6% | 47.0% | 49.8% | 70.5% | 86.9% | 81.7% | 74.4% | 76.9% | 83.2% | 83.1% |
| Operating Margin | 20.3% | 20.3% | 22.5% | 23.4% | 22.4% | 25.6% | 11.3% | 14.1% | 24.0% | 22.4% | 9.5% |
| Net Profit Margin | 15.1% | 15.1% | 16.7% | 18.2% | 20.4% | 18.8% | 6.8% | 7.8% | 16.6% | 14.1% | 3.3% |
Return on Capital
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 11.8% | 11.8% | 12.5% | 12.5% | 7.9% | 6.8% | 2.6% | 3.8% | 7.0% | 5.7% | 1.3% |
| ROA | 0.7% | 0.7% | 0.8% | 0.8% | 0.5% | 0.5% | 0.2% | 0.3% | 0.5% | 0.4% | 0.1% |
| ROIC | 4.0% | 4.0% | 4.6% | 4.5% | 2.6% | 2.4% | 1.5% | 3.2% | 5.1% | 4.7% | 1.8% |
| ROCE | 1.4% | 1.4% | 2.6% | 1.4% | 0.6% | 0.6% | 0.3% | 0.5% | 0.8% | 0.7% | 0.3% |
HSBC Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
HSBC Holdings plc carries a Debt/EBITDA ratio of 15.5x, which is highly leveraged (276% above the sector average of 4.1x). Net debt stands at $208.9B ($495.8B total debt minus $286.9B cash). 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 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 2.68 | 2.68 | 1.26 | 2.22 | 1.10 | 1.91 | 1.85 | 0.67 | 0.55 | 0.43 | 0.48 |
| Debt / EBITDA | 15.52 | 15.52 | 6.66 | 12.62 | 9.77 | 17.05 | 27.03 | 5.41 | 4.94 | 4.43 | 7.05 |
| Net Debt / Equity | — | 1.13 | -0.22 | -0.33 | -0.79 | -0.96 | 0.24 | -0.16 | -0.31 | -0.52 | -0.25 |
| Net Debt / EBITDA | 6.54 | 6.54 | -1.16 | -1.90 | -6.97 | -8.57 | 3.58 | -1.25 | -2.79 | -5.41 | -3.74 |
| Debt / FCF | — | 8.32 | -0.69 | -1.82 | -6.62 | -1.97 | 0.28 | -1.15 | -17.77 | — | -0.69 |
| Interest Coverage | 0.43 | 0.43 | 0.43 | 0.47 | 0.76 | 1.95 | 0.62 | 0.55 | 1.04 | 1.34 | 0.56 |
HSBC Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
HSBC Holdings plc's current ratio of 2.62x is well above the 1.0 safety threshold, indicating strong short-term liquidity with ample room to cover current liabilities. The current ratio has improved from 0.18x to 2.62x over the past 3 years.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 2.62 | 2.62 | 0.16 | 0.18 | 28.34 | 40.36 | 32.58 | 16.36 | 17.77 | 2.68 | 19.31 |
| Quick Ratio | 2.62 | 2.62 | 0.16 | 0.18 | 28.34 | 40.36 | 32.58 | 16.36 | 17.77 | 2.68 | 19.31 |
| Cash Ratio | 1.15 | 1.15 | 0.16 | 0.17 | 28.34 | 40.36 | 31.59 | 14.73 | 14.93 | 1.87 | 12.35 |
| Asset Turnover | — | 0.05 | 0.05 | 0.04 | 0.03 | 0.02 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | — | — | — | — | — | — | — | — | — | — |
HSBC Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
HSBC Holdings plc returns 7.6% to shareholders annually — split between a 3.6% dividend yield and 4.0% buyback yield. A payout ratio of 51.8% is moderate and appears sustainable, balancing shareholder returns with reinvestment capacity. The earnings yield of 6.6% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 3.6% | 4.2% | 9.4% | 7.7% | 5.6% | 5.2% | 1.9% | 6.2% | 6.6% | 4.3% | 5.7% |
| Payout Ratio | 51.8% | 51.8% | 71.3% | 51.8% | 44.8% | 45.9% | 38.7% | 132.4% | 78.4% | 83.4% | 369.4% |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 6.6% | 7.7% | 12.5% | 14.1% | 11.6% | 10.3% | 3.7% | 3.8% | 7.7% | 4.6% | 0.9% |
| FCF Yield | 8.0% | 9.1% | 33.6% | 22.3% | 17.7% | 82.3% | 170.4% | 16.5% | 2.1% | — | 42.0% |
| Buyback Yield | 4.0% | 4.6% | 6.5% | 4.0% | 1.9% | 1.7% | 0.2% | 0.6% | 1.2% | 1.5% | 1.6% |
| Total Shareholder Yield | 7.6% | 8.8% | 15.9% | 11.7% | 7.5% | 6.9% | 2.1% | 6.8% | 7.8% | 5.8% | 7.3% |
| Shares Outstanding | — | $3.5B | $3.7B | $3.9B | $4.0B | $4.1B | $4.0B | $4.0B | $4.0B | $4.0B | $4.0B |
Peer Comparison
Compare HSBC with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 HSBCYou | $314B | 15.1 | 16.4 | 12.5 | 54.6% | 20.3% | 11.8% | 4.0% | 15.5 |
 C | $223B | 21.4 | 25.1 | — | 41.7% | 10.0% | 6.1% | 1.6% | 27.7 |
 JPM | $849B | 15.9 | 13.6 | — | 58.6% | 27.7% | 17.4% | 5.4% | 9.0 |
 BAC | $408B | 14.0 | 14.8 | 32.3 | 55.4% | 18.5% | 10.2% | 3.2% | 10.0 |
 BCS | $82B | 10.8 | 4.8 | — | 108.6% | 37.3% | 9.5% | 2.7% | 21.0 |
 DB | $61B | 8.8 | 13.9 | — | 49.9% | 16.0% | 8.7% | 2.6% | 26.2 |
 UBS | $140B | 24.2 | 30.0 | — | 63.6% | 11.9% | 7.0% | 1.2% | 37.3 |
 GS | $291B | 23.1 | 34.9 | — | 41.1% | 14.5% | 12.0% | 1.9% | 29.7 |
 MS | $308B | 24.3 | 26.0 | — | 55.6% | 17.1% | 13.0% | 2.9% | 15.8 |
 WFC | $249B | 15.0 | 10.6 | 81.9 | 62.2% | 18.6% | 10.7% | 3.7% | 9.1 |
 ING | $86B | 12.0 | 20.8 | — | 94.3% | 39.7% | 12.4% | 3.1% | 18.5 |
| Financial Services Median | — | 13.4 | 11.4 | 10.6 | 63.4% | 21.2% | 9.4% | 5.7% | 4.1 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
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Start ComparisonHSBC — Frequently Asked Questions
Quick answers to the most common questions about buying HSBC stock.
What is HSBC Holdings plc's P/E ratio?
HSBC Holdings plc's current P/E ratio is 15.1x. The historical average is 20.9x. This places it at the 55th percentile of its historical range.
What is HSBC Holdings plc's EV/EBITDA?
HSBC Holdings plc's current EV/EBITDA is 16.4x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 15.2x.
What is HSBC Holdings plc's ROE?
HSBC Holdings plc's return on equity (ROE) is 11.8%. The historical average is 10.4%.
Is HSBC stock overvalued?
Based on historical data, HSBC Holdings plc is trading at a P/E of 15.1x. This is at the 55th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What is HSBC Holdings plc's dividend yield?
HSBC Holdings plc's current dividend yield is 3.61% with a payout ratio of 51.8%.
What are HSBC Holdings plc's profit margins?
HSBC Holdings plc has 54.6% gross margin and 20.3% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
How much debt does HSBC Holdings plc have?
HSBC Holdings plc's Debt/EBITDA ratio is 15.5x, indicating high leverage. A ratio above 4x may signal elevated financial risk.