HSBCCAUTIOUS

HSBC P/E Ratio Analysis

12.8x

Higher than 42% of Financial Services sector peers

Updated 1642h ago·SEC filings & market data

Key Takeaway

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.

Sector Performance

42th percentile

HSBC

12.8x

Sector Median

13.2x

Sector Avg

19.3x

Prior Period

15.0x(May 2026)

↑ Improving

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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 13.2x, placing it in the 42th percentile.

Who are HSBC's closest peers by P/E Ratio?

The closest Financial Services peers by P/E Ratio include: PFG (13.2x), AFL (12.9x), AIG (13.7x), RJF (12.7x), BRK-B (14.5x).

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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.