HSBC HoldingsLSE:HSBA +0.40%60 Return-on-Tangible-Equity is 15.41% as of Mar. 2026, which is 87% above its 10-year median of 8.26. GuruFocus rates LSE:HSBA with a GF Score™ of 60/100 and a GF Value™ of £8.33 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 1,523 Banks companies, HSBC Holdings ranks better than 53.12% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. HSBC Holdings's annualized net income for the quarter that ended in Mar. 2026 was £22,035 Mil. HSBC Holdings's average shareholder tangible equity for the quarter that ended in Mar. 2026 was £142,949 Mil. Therefore, HSBC Holdings's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 15.41%.
The historical rank and industry rank for HSBC Holdings's Return-on-Tangible-Equity or its related term are showing as below:
LSE:HSBA'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 1.71 Med: 8.26 Max: 13.89
Current: 11.73
During the past 13 years, HSBC Holdings's highest Return-on-Tangible-Equity was 13.89%. The lowest was 1.71%. And the median was 8.26%.
LSE:HSBA's Return-on-Tangible-Equity is ranked better than 53.12% of 1523
companies
in the Banks industry
Industry Median: 11.19
vs LSE:HSBA: 11.73
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
HSBC Holdings Return-on-Tangible-Equity Related Terms
HSBC Holdings Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for HSBC Holdings's Return-on-Tangible-Equity 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.
LSE:HSBA vs JPM, BAC, WFC: Return-on-Tangible-Equity Comparison
For the Banks - Diversified subindustry, HSBC Holdings's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Banks Industry
For the Banks industry and Financial Services sector, HSBC Holdings's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where HSBC Holdings's Return-on-Tangible-Equity falls into.
* 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 15.41% mean?
HSBC Holdings (LSE:HSBA) has a Return-on-Tangible-Equity of 15.41% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on HSBC Holdings and its competitors. This is 87% above median its historical median of 8.26. Over the past decade, HSBC Holdings' Return-on-Tangible-Equity has ranged from 1.71 to 13.89. According to the industry distribution chart, HSBC Holdings ranks #714 out of 1523 companies in the Banks industry, placing it in the top 46.9%.
Is HSBC Holdings' Return-on-Tangible-Equity too high?
HSBC Holdings' current Return-on-Tangible-Equity of 15.41% is 87% above median its 10-year median of 8.26. Over the past 10 years, this metric has ranged from a low of 1.71 to a high of 13.89. The Banks industry median Return-on-Tangible-Equity is 11.19. HSBC Holdings' value of 15.41% is 37.7% above this industry median. Based on the distribution chart, HSBC Holdings ranks #714 out of 1523 companies in the Banks industry, which is above the industry midpoint. Overall, HSBC Holdings has a GF Score™ of 60/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does HSBC Holdings' Return-on-Tangible-Equity compare to JPM and BAC?
According to the Banks industry distribution chart, HSBC Holdings ranks #714 out of 1523 companies for Return-on-Tangible-Equity. This puts HSBC Holdings in the upper half of its industry. The industry median Return-on-Tangible-Equity is 11.19. HSBC Holdings' value of 15.41% is 37.7% above this benchmark. Historically, HSBC Holdings' own Return-on-Tangible-Equity has ranged from 1.71 to 13.89 over the past decade. While the company's 10-year median is 8.26 vs. the industry median of 11.19, HSBC Holdings has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Banks company?
The median Return-on-Tangible-Equity among Banks companies is 11.19, based on 1,523 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. HSBC Holdings's current Return-on-Tangible-Equity of 15.41% is 37.7% 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on HSBC Holdings and its competitors. For the Banks industry, the median Return-on-Tangible-Equity is 11.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. HSBC Holdings's current Return-on-Tangible-Equity is 15.41%, which is 87% above median its own 10-year median of 8.26. 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 (LSE:HSBA) is currently considered Significantly Overvalued. The stock's GF Value™ is £8.33, compared to a current price of £14.51 — trading 74.2% above its estimated fair value. The current Return-on-Tangible-Equity is 15.41%, which is 87% above median its 10-year median of 8.26 and 37.7% above the Banks industry median of 11.19. HSBC Holdings' overall GF Score™ is 60/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For HSBC Holdings (LSE:HSBA), the current Return-on-Tangible-Equity is 15.41% as of Mar. 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 (LSE:HSBA) Overvalued in 2026?
Based on GuruFocus' analysis, HSBC Holdings stock appears to be overvalued.
The current stock price of £14.51 is trading 74.2% above its estimated GF Value™ of £8.33.
GuruFocus considers HSBC Holdings to be Significantly Overvalued.
Key valuation signals for LSE:HSBA:
Return-on-Tangible-Equity: 15.41% (87% above median its 10-year median of 8.26)
GF Value™: £8.33 vs. price of £14.51 (74.2% above fair value)
Industry Position: 37.7% above the Banks median (#714 of 1523)
No single metric tells the full story. See the LSE:HSBA 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.
60GF Score
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