HSBC Holdings (XTER:HBC1) Risk Assessment

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What is HSBC Holdings Risk Assessment?

Risk Assessment represents the investment risk of a stock derived from our exclusive method. It suggests how risky the investment opportunity is based on the valuation and the fundamental performance of the stock. It is derived from following key aspects:

1. GuruFocus internally developed valuations of the stock, such as GF valuation.
2. Quality Rank, a business quality indicator developed by GuruFocus.
3. Fundamental performance: Piotroski F-Score, Altman Z-Score, Beneish M-Score, etc.
4. Growth opportunities: 5-year revenue growth rate, 5-Year EPS without NRI Growth Rate, etc.

Value investors are always willing to find undervalued stocks. However, not all the undervalued stocks are good deals, we should also be careful of how risky the investment opportunity is. We believe that if the company's financial strength and profitability are strong, and the stock price is within a reasonable range of the GF valuation, or stock has a high return with its price being undervalued, then it might be a good investment opportunity with low risk.

Based on those aspects listed above, GuruFocus believes the risk assessment of HSBC Holdings is: High Risk: High uncertainty with risk-return tradeoff.

Competitive Comparison of HSBC Holdings's Risk Assessment

For the Banks - Diversified subindustry, HSBC Holdings's Risk Assessment, along with its competitors' market caps and Risk Assessment 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's Risk Assessment Distribution in the Banks Industry

For the Banks industry and Financial Services sector, HSBC Holdings's Risk Assessment distribution charts can be found below:

* The bar in red indicates where HSBC Holdings's Risk Assessment falls into.

HSBC Holdings (XTER:HBC1) Risk Assessment Explanation

Based on the four aspects listed above, GuruFocus provides the following 7 evaluations:

All-in-One Screener Examples (1)
Low Risk: Strong fundamentals, worth long-term holding
Moderate Risk: Sensitive, better choose undervalued stock
High Risk: High uncertainty with risk-return tradeoff
High Risk: Good fundamentals, beware of shrinking business
High Risk: Sensitive to economic or industry trends
High Risk: High uncertainty
No Data: Cannot be evaluated

(1) These are some simple examples. You can access our Risk Assessment filter under All-in-One Screener’s Fundamental tab and set your own criteria.

HSBC Holdings Risk Assessment Related Terms

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HSBC Holdings Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » HSBC Holdings PLC (XTER:HBC1) » Definitions » Risk Assessment

Comparable Companies

Traded in Other Exchanges

HBCYF:USA HSBC:USA HBC N:Mexico 00005:Hong Kong HSBAl:UK HSBA:UK HBC2:Germany HBC1:Germany HBC2:Germany HBC1:Germany HBC2:Germany HBC1:Germany H1SB34:Brazil HSBC.BH:Bermuda HSBC:Argentina

Address

8 Canada Square, London, GBR, E14 5HQ

Website

https://www.hsbc.com

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 40 million customers worldwide. It operates in around 60 countries with around 220,000 full-time staff. The United Kingdom and Hong Kong are its two largest markets. The bank offers retail, commercial and institutional banking, global banking and markets, wealth management, and private banking.

HSBC Holdings Headlines

No Headlines