HSBC Holdings Fair Value
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The fair market value of HSBC stock is 11.29 USD. Relative to the market price of 44.915 USD HSBC Holdings is undervalued by 25.7%
Eyestock's quantitative valuation approach is based on the method of estimating historical multipliers. To determine whether a stock is undervalued, we compare its current price to our estimated of fair value. The more undervalued a stock is, the more investment is profitable.
Fair Relative Value
HSBC Holdings Valuation
Current HSBC share ticker price is 44.915 USD.
The fair value level of 11.29 USD can be considered as an effective entry point for long-term investors to start investing in HSBC stock. For a more in-depth assessment, we provide a minimum value that can be used to increase a stock position and a maximum one that can be used to reduce it.
Price chart is not available
Current market price
Current price is 26% lower its fair value
Current price is 17% higher its minimum value
Current price is 211% lower its maximum value
Market price:
HSBC stock is undervalued
It means the current price may concern as a Moderate Risk Entry Point
HSBC Holdings PLC Stock Valuation Calculator
How do we value a stock?
As fair value, we use the product of the median Price-to-earnings ratios at the end of each reporting period for the last 5 years and earnings per share for the last 12 months. By analogy with the fair value, we calculate the maximum and minimum ones using the corresponding P/E extremums.
1
Maximum P/E over 5 years
14.92
2
Median P/E over 5 years
6.03
3
Minimum P/E over 5 years
4
4
Earning per share (last 12 months)
1.87 USD
Maximum value
1
x
4
=
139.65 USD
Fair value
2
x
4
=
56.47 USD
Minimum value
3
x
4
=
37.41 USD
HSBC Holdings PLC price metrics
3.3
Annual return (geometric mean)
28.85
Risk (standard deviation) of returns
β
0.57
Beta (volatility compared to market)