Latest Ratios: P/E Ratio 16.6x · EV/EBITDA 9.2x · ROE 11.2%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $344.5B | $276.1B | $182.9B | $158.9B | $124.6B | $122.4B | $104.9B | $158.2B | $164.3B | $207.3B | $159.5B |
| Enterprise Value | $292.9B | $224.5B | $140.7B | $94.5B | $-21259248000 | $-76371940000 | $155.0B | $128.3B | $103.4B | $104.4B | $113.4B |
| P/E Ratio → | 16.57 | 13.00 | 7.98 | 7.11 | 8.66 | 9.73 | 27.27 | 26.06 | 13.05 | 21.52 | 114.80 |
| P/S Ratio | 4.07 | 3.26 | 2.71 | 2.47 | 2.32 | 1.91 | 1.66 | 2.25 | 2.58 | 3.26 | 2.57 |
| P/B Ratio | 1.71 | 1.34 | 0.95 | 0.83 | 0.67 | 0.59 | 0.51 | 0.82 | 0.85 | 1.05 | 0.87 |
| P/FCF | 13.72 | 11.00 | 2.98 | 4.49 | 5.66 | 1.22 | 0.59 | 6.06 | 47.97 | — | 2.38 |
| P/OCF | 11.57 | 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
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 2.65 | 2.09 | 1.47 | -0.40 | -1.19 | 2.45 | 1.82 | 1.63 | 1.64 | 1.83 |
| EV / EBITDA | 9.17 | 7.03 | 3.87 | 2.79 | -1.02 | -3.29 | 11.06 | 5.38 | 4.74 | 5.49 | 9.20 |
| EV / EBIT | 9.77 | 8.30 | 4.35 | 3.11 | -1.25 | -4.04 | 17.66 | 9.61 | 5.20 | 6.08 | 15.94 |
| EV / FCF | — | 8.94 | 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
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% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 11.2% | 11.2% | 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 | 5.0% | 5.0% | 4.6% | 4.5% | 2.6% | 2.4% | 1.5% | 3.2% | 5.1% | 4.7% | 1.8% |
| ROCE | 2.5% | 2.5% | 2.6% | 1.4% | 0.6% | 0.6% | 0.3% | 0.5% | 0.8% | 0.7% | 0.3% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 1.25 | 1.25 | 1.26 | 2.22 | 1.10 | 1.91 | 1.85 | 0.67 | 0.55 | 0.43 | 0.48 |
| Debt / EBITDA | 8.02 | 8.02 | 6.66 | 12.62 | 9.77 | 17.05 | 27.03 | 5.41 | 4.94 | 4.43 | 7.05 |
| Net Debt / Equity | — | -0.25 | -0.22 | -0.33 | -0.79 | -0.96 | 0.24 | -0.16 | -0.31 | -0.52 | -0.25 |
| Net Debt / EBITDA | -1.61 | -1.61 | -1.16 | -1.90 | -6.97 | -8.57 | 3.58 | -1.25 | -2.79 | -5.41 | -3.74 |
| Debt / FCF | — | -2.06 | -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 |
Net cash position: cash ($307.7B) exceeds total debt ($256.1B)
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.33 | 0.33 | 0.16 | 0.18 | 28.34 | 40.36 | 32.58 | 16.36 | 17.77 | 2.68 | 19.31 |
| Quick Ratio | 0.33 | 0.33 | 0.16 | 0.18 | 28.34 | 40.36 | 32.58 | 16.36 | 17.77 | 2.68 | 19.31 |
| Cash Ratio | 0.15 | 0.15 | 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 | — | — | — | — | — | — | — | — | — | — | — |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
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 | 3.3% | 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% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 6.0% | 7.7% | 12.5% | 14.1% | 11.6% | 10.3% | 3.7% | 3.8% | 7.7% | 4.6% | 0.9% |
| FCF Yield | 7.3% | 9.1% | 33.6% | 22.3% | 17.7% | 82.3% | 170.4% | 16.5% | 2.1% | — | 42.0% |
| Buyback Yield | 3.7% | 4.6% | 6.5% | 4.0% | 1.9% | 1.7% | 0.2% | 0.6% | 1.2% | 1.5% | 1.6% |
| Total Shareholder Yield | 7.0% | 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 |
Includes 30+ ratios · 30 years · Updated daily
Live VCP patterns, Cup & Handle overlays, support/resistance, and AI trade plans.
High-probability breakout stocks crossing their pivot across 5 pattern engines.
Bull/bear thesis, analyst target revisions, and earnings execution.
DCF models, multiple analysis, and analyst estimates.
10-year return with dividends reinvested.
Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying HSBC stock.
HSBC Holdings plc's current P/E ratio is 16.6x. The historical average is 20.9x. This places it at the 59th percentile of its historical range.
HSBC Holdings plc's current EV/EBITDA is 9.2x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 14.9x.
HSBC Holdings plc's return on equity (ROE) is 11.2%. The historical average is 10.4%.
Based on historical data, HSBC Holdings plc is trading at a P/E of 16.6x. This is at the 59th 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 3.29% with a payout ratio of 51.8%.
HSBC Holdings plc has 54.6% gross margin and 20.3% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
HSBC Holdings plc's Debt/EBITDA ratio is 8.0x, indicating high leverage. A ratio above 4x may signal elevated financial risk.
Key Metrics
Top Statement Risk
Zero provisions masking credit risk
Premium Valuation Reflects Asian Wealth Pivot
At a P/B of 1.78, HSBC trades at a significant premium to European peers like Barclays (0.87) and Deutsche Bank (0.80), but a discount to U.S. leaders like JPMorgan (2.71), suggesting the market prices in its Asian growth option while applying a conglomerate discount.
The current P/B multiple implies the market expects HSBC to generate a sustainable ROTCE in the mid-teens, a target management has outlined for 2026-2028. However, the bank's recent quarterly ROE of 4.0% and structurally low NIM of 0.3% suggest a significant gap between current profitability and that implied valuation, requiring successful execution on the wealth management pivot and cost control to justify the premium.
ROE Recovery Driven by Efficiency Gains
HSBC's ROE has recovered to 4.0% in Q2 2026 from a low of 0.2% in Q4 2024, a turnaround primarily fueled by a dramatic improvement in the efficiency ratio to 26.0%, indicating successful cost containment outpacing revenue growth.
The DuPont decomposition reveals that profitability improvement is not driven by net interest margin, which remains structurally low at 0.3%, but by a significant reduction in operating costs relative to revenue. This operational leverage is positive, but the bank's low 6% equity-to-assets ratio means achieving a 17%+ ROE target will require further margin expansion or a substantial increase in fee-generating asset-light activities, which now comprise 28.6% of revenue.
Structural NIM Depressed by Geographic Mix
HSBC's net interest margin has been consistently reported at 0.3% across recent quarters, a level that appears structurally constrained by its Hong Kong dollar funding base pegged to US rates and its large holdings of low-yielding securities.
The efficiency ratio's volatility, ranging from 11.9% to 84.8% over two years, suggests that HSBC's cost structure is highly sensitive to large, lumpy 'notable items' and accounting adjustments rather than reflecting steady-state operational efficiency. While the recent trend is improving, the persistent NIM compression indicates the bank's primary profitability challenge is generating sufficient spread income, forcing greater reliance on volatile non-interest income streams.
Ample Capital Buffer Supports Shareholder Returns
With an equity-to-assets ratio of 6% and total equity of $196.7B as of Q2 2026, HSBC maintains a substantial capital buffer well above regulatory minimums, underpinning its capacity for significant dividends and buybacks.
The consistent 6% equity-to-assets ratio over ten quarters indicates disciplined capital management, preventing dilution and supporting the bank's stated capital return framework. This ample capital position is a key asset in its pivot to Asia, providing the financial firepower for strategic investments and acquisitions in wealth management without compromising regulatory safety.
Anomalous Zero Provisions Demand Skepticism
HSBC has reported zero loan loss provisions for ten consecutive quarters, a pattern that appears analytically incongruent with its disclosed exposure to cyclical sectors like Hong Kong commercial real estate and warrants significant investor scrutiny.
The absence of any provision expense in the dataset creates a stark disconnect between reported profitability and the known risks in its credit portfolio, particularly given the noted oversupply in Hong Kong property. While this could reflect exceptionally strong collateral or low actual defaults, it more likely suggests either delayed recognition of credit stress or the masking of losses within 'notable items,' making reported ROE and asset quality metrics potentially unreliable for assessing true economic risk.
The Efficiency Ratio as a Misleading Signal
The most commonly misapplied ratio for HSBC is its efficiency ratio, which has swung from 11.9% to 84.8% and appears distorted by large, non-recurring items rather than reflecting underlying operational cost control.
The extreme volatility in the efficiency ratio—appearing artificially low in some quarters and prohibitively high in others—obscures the true trajectory of operating leverage. Investors should instead focus on the more stable fee income ratio, which at 28.6% provides a cleaner read on the bank's mix-shift toward capital-light revenue, and on absolute cost growth relative to a normalized revenue run-rate to assess genuine efficiency.