Stock fact sheet · data as of
HSBC Holdings plc (HSBC): fair value, margin of safety and Wheel Score
Ticker symbol HSBC · Financial Services · Banks - Diversified · United Kingdom · ADR · Value Income
HSBC is an American depositary share (ADR): the US listing of HSBC Holdings plc, whose own shares trade on its home exchange. It trades in dollars during US hours; currency moves and the home country's rules also affect it, and the depositary bank charges a small yearly fee.
Is HSBC undervalued?
HSBC Holdings plc (HSBC) closed at 89.37 on 5 Nov 2026. The GLS average fair value - the simple average of the 9 valuation models that produced a positive number - is 147.87, which puts the price 40% below it. 7 of the 9 models value the shares above the current price. A gap this wide is rare in our universe of ~7,400 US stocks and is exactly what the Value part of the Wheel Score rewards; it is also where the question "why is it this cheap?" matters most.
The 9 models disagree widely: Graham Number gives 20.36 while GLS Growth gives 253.73. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.
Ranked against every other company we cover, HSBC is clearly cheaper than it is fast-growing, so the nightly engine files it under Value (value score 63, growth score 36, out of 100). It also carries the Income tag (Income = a dividend yield of 4% or more).
Nine valuation models for HSBC
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 144.76 | +62% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 20.36 | -77% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 246.40 | +176% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 91.31 | +2% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 253.73 | +184% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 198.83 | +122% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 229.57 | +157% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 55.18 | -38% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 90.69 | +1% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -680.79 | -862% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 52.00 | -42% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Financial health is average - HSBC passes 5 of the nine Piotroski tests, which falls one point short of the "Piotroski 6 or more" Wheel Trade Filter. The Financials tab on the Quote page shows which tests fail. The GLS Moat score is low at 3.8 out of 10: returns on capital, margins or the balance sheet have not shown a lasting edge yet - often a young company, a thin-margin business or one that has only recently turned profitable.
Returns on capital are thin or negative - ROIC 4.9%, ROE 11.2%, ROA 0.7% - with debt at 1.29 times equity and negative free cash flow.
The dividend yield is high at 4.22% (payout ratio 0%). A yield this size is often the market's way of pricing a risk to the payout, so the health score and cash flow matter more than usual.
Institutional ownership scores 1/10, insider activity 1/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 5 / 9 | ROIC | 4.9% |
|---|---|---|---|
| GLS Moat | 3.8 / 10 | ROE | 11.2% |
| Debt / equity | 1.29 | ROA | 0.7% |
| Free-cash-flow yield | 0.0% | Payout ratio | 0% |
| Institutions | 1 / 10 | Insiders · Congress | 1 · 5 / 10 |
Wheel Score 49: Weak
HSBC scores 49 out of 100 on the Wheel Score, in the Weak band (under 50): it fails filter 4, financially healthy - Piotroski 5/9 (under 6), and the parts are thin too - value strong, premium good, moat fair, health fair, red flags good, option trading good, stability strong. The score is not a judgement on the company; it says the price, quality and premium do not line up for selling puts on it today.
Implied volatility is 29% on the near-the-money contracts 20-60 days out: enough to pass the 25-80% Wheel Trade Filter, but under the 35-60% sweet spot the score rewards most. The option chain is deep: 64,230 contracts of open interest across all expiries, which means tight fills at most strikes.
Volume runs at 2.9M shares a day on a market cap of $311.8B, with a beta of 0.55 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score rates that strong.
| Filter | Wheel Trade Filter | Result | Detail |
|---|---|---|---|
| 1 | Options that actually trade | Passes | Listed options with 1,000+ contracts of open interest and 100+ traded a day |
| 2 | A real business, not a gamble | Passes | Profitable over the last twelve months - not a speculative stock, fund or note |
| 3 | Below fair value | Passes | Trading below the nine-model average fair value (margin of safety above 0) |
| 4 | Financially healthy | Fails | Piotroski 5/9 (under 6) |
| 5 | Can repay its debt | Passes | Long-term debt repaid from 3 years of operating cash flow or less (6 for real estate and utilities; banks and insurers are not judged on it) |
| 6 | No serious red flags | Passes | Red Flags score 60 or more out of 100 (earnings, margins, debt, analysts, filings and price checked the same way for every stock) |
| 7 | A premium worth selling | Passes | Implied volatility 25-80% (enough premium, not a lottery ticket) |
| 8 | Big enough | Passes | Market cap $1 billion or more |
| 9 | Not a penny stock | Passes | Share price $5 or more |
| How it ranks | Rating | From | |
|---|---|---|---|
| Value | Strong | 40% below fair value | |
| Premium | Good | implied volatility 29% | |
| Moat | Fair | moat 3.8/10 | |
| Health | Fair | Piotroski 5/9 | |
| Red Flags | Good | Red Flags score 80/100 | |
| Option trading | Good | 4,224 contracts a day, 64,230 open interest | |
| Stability | Strong | beta 0.55, $311.8B company |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls: a stock must pass all 9 Wheel Trade Filters to score 70, and the score then ranks the ones that pass; the Sunday Scan is the top 10. It is updated nightly and is not a recommendation. How the Wheel Score works · the walkthrough lesson shows how it fits into a trade, start to finish.
Upcoming events
No upcoming earnings date is recorded for HSBC in the nightly calendar. The shares go ex-dividend on 6 Nov 2026 (0.5000 per share), so a covered call sold before then carries a small early-assignment risk around that date.
No analyst upgrades or downgrades were recorded in the last 30 days.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Banks - Diversified
The 12 companies below are the closest to HSBC Holdings plc by market cap within the Banks - Diversified industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| RY Royal Bank of Canada | 209.79 | 305.64 | +31% | 81Good | $290.9B |
| BAC Bank of America Corporation | 51.63 | 118.20 | +56% | 81Good | $356.3B |
| BACRP Bank of America Corporation PFD SER B 7% | 192.00 | 301.46 | +36% | 32No options | $359.1B |
| WFC Wells Fargo & Company | 87.43 | 158.36 | +45% | 84Good | $262.5B |
| MUFG Mitsubishi UFJ Financial Group, Inc. | 21.97 | 30.73 | +29% | 87Prime | $248.2B |
| TD The Toronto-Dominion Bank | 128.20 | 133.06 | +4% | 70Good | $216.6B |
| C Citigroup Inc. | 124.75 | 174.18 | +28% | 52Fair | $209.3B |
| SAN Banco Santander, S.A. | 12.07 | 38.86 | +69% | 48Weak | $179.8B |
| UBS UBS Group AG | 50.67 | 77.43 | +35% | 80Good | $155.1B |
| BBVA Banco Bilbao Vizcaya Argentaria, S.A. | 25.47 | 52.66 | +52% | 49Weak | $140.8B |
| BMO Bank of Montreal | 177.47 | 317.92 | +44% | 81Good | $123.4B |
| BNS The Bank of Nova Scotia | 96.43 | 136.01 | +29% | 47Weak | $117.5B |
⚖ Compare HSBC with 7 of them All Financial Services stocks →
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Start free See the Sunday ScanQuestions about HSBC
Is HSBC undervalued right now?
By the GLS models, yes: at 89.37 the stock is 40% below the average fair value of 147.87 (data as of 5 Nov 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of HSBC and what does it mean?
HSBC scores 49 out of 100 (Weak) - it fails Wheel Trade Filter 4. The Wheel Score ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned - in two parts: the 9 pass/fail Wheel Trade Filters (busy options, a real business, below fair value, Piotroski 6 or more, debt it can repay, a Red Flags score of 60 or more, implied volatility of 25-80%, a $1 billion company, $5 a share) and a ranking of how strongly a stock passes on value, premium, moat, health, red flags, option trading and stability. A stock that fails any filter stays under 70; 70-84 is Good, 85 and above is Prime. The Sunday Scan is the top 10 that pass, sorted by Wheel Score.
What is the GLS fair value for HSBC?
147.87 per share as of 5 Nov 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does HSBC Holdings plc report earnings next?
No upcoming earnings date is recorded for HSBC in our calendar as of 5 Nov 2026; the Calendars page is refreshed every morning.
Does HSBC have listed options, and how liquid are they?
Yes. The nightly snapshot found 542 listed contracts with 64,230 open interest across all expiries and implied volatility of 29% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.
Is HSBC an ADR?
Yes. HSBC is an American depositary share (ADR): the US listing of HSBC Holdings plc, whose own shares trade on its home exchange. It trades in dollars during US hours; currency moves and the home country's rules also affect it, and the depositary bank charges a small yearly fee.