P/E Ratio
Higher than 33% of Financial Services sector peers
Updated 189h ago
Sector Performance
33th percentileHSBC
12.8x
Sector Median
15.0x
Sector Avg
22.0x
Deep Analysis
HSBC's current P/E ratio of 12.8x means that investors are paying $12.80 for every $1 of the company's earnings over the past year.
The sector median for Financial Services is 15.0x, placing HSBC in the 33rd percentile among its peers, indicating a lower valuation than most. The trend direction, year-over-year change, and quarter-over-quarter change are all reported as N/A, providing no insight into recent shifts in valuation. Without trend data, the combination of a below-median P/E level suggests a potential valuation discount, but the lack of movement offers limited signal on whether that discount is narrowing or widening. This metric supports the overall CAUTIOUS verdict because a lower P/E can imply hidden risks or slower growth expectations that warrant caution despite the apparent cheapness.
Frequently Asked Questions
What does the P/E Ratio tell investors about HSBC?
Measures how much investors pay per dollar of earnings. A high P/E signals growth expectations; a low P/E may indicate undervaluation or slow growth.
How is the P/E Ratio calculated?
P/E Ratio is calculated as: Price / EPS.
How does HSBC's P/E Ratio compare to its sector?
HSBC's P/E Ratio of 12.8x compares to a Financial Services sector median of 15.0x, placing it in the 33th percentile.
Who are HSBC's closest peers by P/E Ratio?
The closest Financial Services peers by P/E Ratio include: RJF (13.7x), AIG (13.7x), PFG (13.2x), AFL (12.9x), BAC (12.8x).
The Formula
Price / EPS
Why It Matters
Measures how much investors pay per dollar of earnings. A high P/E signals growth expectations; a low P/E may indicate undervaluation or slow growth.
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12.8x
Sector Median
15.0x
Sector Avg
22.0x
How HSBC's P/E Ratio compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.