Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
HSBC Holdings (NYSE:HSBC) Forward PE Ratio Explanation
The Forward PE Ratio of a company is often used to compare current earnings to estimated future earnings, as well as gaining a clearer picture of what earnings will look like without charges and other accounting adjustments. If earnings are expected to grow in the future, the Forward PE Ratio will be lower than the current PE Ratio. This measure is also used to compare one company to another with a forward-looking focus.
Trailing PE Ratio relies on what is already done. It uses the current share price and divides by the total EPS (Basic) over the past 12 months. PE Ratio can be affected by Non Operating Income such as the sale of part of businesses. This may increase for the current year or quarter dramatically. But it cannot be repeated over and over. Therefore PE Ratio without NRI is a more accurate indication of valuation than PE Ratio .
HSBC Holdings Forward PE Ratio Related Terms
HSBC Holdings Forward PE Ratio Historical Data
* Premium members only.
The historical data trend for HSBC Holdings's Forward PE Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
HSBC Holdings Forward PE Ratio Chart
HSBC Holdings Annual Data
Trend
2015-12
2016-12
2017-12
2018-12
2019-12
2020-12
2021-12
2022-12
2023-12
2024-12
2025-12
Forward PE Ratio
9.39
12.56
13.81
10.27
11.12
11.07
9.13
6.22
6.70
35.46
9.65
HSBC Holdings Quarterly Data
2015-12
2016-03
2016-06
2016-09
2016-12
2017-03
2017-06
2017-09
2017-12
2018-03
2018-06
2018-09
2018-12
2019-03
2019-06
2019-09
2019-12
2020-03
2020-06
2020-09
2020-12
2021-03
2021-06
2021-09
2021-12
2022-03
2022-06
2022-09
2022-12
2023-03
2023-06
2023-09
2023-12
2024-03
2024-06
2024-09
2024-12
2025-03
2025-06
2025-09
2025-12
2026-03
Forward PE Ratio
9.39
7.78
9.16
12.44
12.56
13.11
14.25
13.91
13.81
12.69
12.25
11.43
10.27
11.12
11.44
10.37
11.12
10.49
13.68
7.87
11.07
11.67
10.40
8.11
9.13
9.54
9.28
5.43
6.22
6.37
6.66
6.57
6.70
6.56
7.13
7.24
35.46
14.18
14.80
15.96
9.65
9.12
HSBC vs JPM, BAC, WFC: Forward PE Ratio Comparison
For the Banks - Diversified subindustry, HSBC Holdings's Forward PE Ratio, along with its competitors' market caps and Forward PE Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
HSBC Holdings Forward PE Ratio vs Banks Industry
For the Banks industry and Financial Services sector, HSBC Holdings's Forward PE Ratio distribution charts can be found below:
* The bar in red indicates where HSBC Holdings's Forward PE Ratio falls into.
It's a measure of the price-to-earnings ratio (PE Ratio) using forecasted earnings for the calculation. While the earnings used are just an estimate and are not as reliable as current earnings data, there is still benefit in estimated P/E analysis. The forecasted earnings used in the formula can either be for the next 12 months or for the next full-year fiscal period.
HSBC Holdings (HSBC) has a Forward PE Ratio of 11.52 as of Jul. 14, 2026. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on HSBC Holdings and its competitors. According to the industry distribution chart, HSBC Holdings ranks #476 out of 817 companies in the Banks industry, placing it in the top 58.3%.
Is HSBC Holdings' Forward PE Ratio too high?
HSBC Holdings' current Forward PE Ratio is 11.52. The Banks industry median Forward PE Ratio is 11.08. HSBC Holdings' value of 11.52 is 4% above this industry median. Based on the distribution chart, HSBC Holdings ranks #476 out of 817 companies in the Banks industry, which is below the industry midpoint. Overall, HSBC Holdings has a GF Score™ of 65/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does HSBC Holdings' Forward PE Ratio compare to JPM and BAC?
According to the Banks industry distribution chart, HSBC Holdings ranks #476 out of 817 companies for Forward PE Ratio. This places HSBC Holdings in the lower half of its industry. The industry median Forward PE Ratio is 11.08. HSBC Holdings' value of 11.52 is 4% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Forward PE Ratio for a Banks company?
The median Forward PE Ratio among Banks companies is 11.08, based on 817 companies in the industry. Companies in the top quartile (top 25%) have a Forward PE Ratio significantly above this median, while those in the bottom quartile fall well below. However, Forward PE Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. HSBC Holdings's current Forward PE Ratio of 11.52 is 4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Forward PE Ratio mean?
A high Forward PE Ratio can signal that a stock is expensive relative to its fundamentals. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on HSBC Holdings and its competitors. For the Banks industry, the median Forward PE Ratio is 11.08 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. HSBC Holdings's current Forward PE Ratio is 11.52. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is HSBC Holdings stock overvalued right now?
Based on GuruFocus' analysis, HSBC Holdings (HSBC) is currently considered Significantly Overvalued. The stock's GF Value™ is $56.21, compared to a current price of $98.09 — trading 74.5% above its estimated fair value. The current Forward PE Ratio is 11.52 and 4% above the Banks industry median of 11.08. HSBC Holdings' overall GF Score™ is 65/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Forward PE Ratio calculated?
Forward PE Ratio is calculated from a company's financial statements. For HSBC Holdings (HSBC), the current Forward PE Ratio is 11.52 as of Jul. 14, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is HSBC Holdings (HSBC) Overvalued in 2026?
Based on GuruFocus' analysis, HSBC Holdings stock appears to be overvalued.
The current stock price of $98.09 is trading 74.5% above its estimated GF Value™ of $56.21.
GuruFocus considers HSBC Holdings to be Significantly Overvalued.
Key valuation signals for HSBC:
Forward PE Ratio: 11.52
GF Value™: $56.21 vs. price of $98.09 (74.5% above fair value)
Industry Position: 4% above the Banks median (#476 of 817)
No single metric tells the full story. See the HSBC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Established in 1865 in Hong Kong, London-based HSBC is one of the largest banks in the world, with assets of USD 3 trillion and over 40 million customers worldwide. It operates in more than 50 countries with over 200,000 full-time staff. Hong Kong and the United Kingdom are its two largest markets. The bank offers retail, commercial and institutional banking, global banking and markets, wealth management, and private banking.
65GF Score
Get the complete analysis for HSBC
Forward PE Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
HSBC has been successfully added to your 
