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HSBC (HSBC Holdings) Shiller PE Ratio : 13.32 (As of Dec. 14, 2024)


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What is HSBC Holdings Shiller PE Ratio?

As of today (2024-12-14), HSBC Holdings's current share price is $48.60. HSBC Holdings's E10 for the quarter that ended in Sep. 2024 was $3.65. HSBC Holdings's Shiller PE Ratio for today is 13.32.

The historical rank and industry rank for HSBC Holdings's Shiller PE Ratio or its related term are showing as below:

HSBC' s Shiller PE Ratio Range Over the Past 10 Years
Min: 6.75   Med: 12.53   Max: 16.84
Current: 14.17

During the past years, HSBC Holdings's highest Shiller PE Ratio was 16.84. The lowest was 6.75. And the median was 12.53.

HSBC's Shiller PE Ratio is ranked worse than
66.55% of 1136 companies
in the Banks industry
Industry Median: 11.52 vs HSBC: 14.17

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years.

HSBC Holdings's adjusted earnings per share data for the three months ended in Sep. 2024 was $1.700. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $3.65 for the trailing ten years ended in Sep. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


HSBC Holdings Shiller PE Ratio Historical Data

The historical data trend for HSBC Holdings's Shiller 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.

* Premium members only.

HSBC Holdings Shiller PE Ratio Chart

HSBC Holdings Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Shiller PE Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 13.62 9.48 11.32 11.91 -

HSBC Holdings Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Shiller PE Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 13.31 - 12.08 12.98 12.37

Competitive Comparison of HSBC Holdings's Shiller PE Ratio

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

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

* The bar in red indicates where HSBC Holdings's Shiller PE Ratio falls into.



HSBC Holdings Shiller PE Ratio Calculation

For Shiller PE Ratio, the earnings of the past 10 years are inflation-adjusted and averaged. The result is used for P/E calculation. Since it looks at the average over the last 10 years, the Shiller PE Ratio is also called PE10.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The same calculation is applied here to individual companies.

HSBC Holdings's Shiller PE Ratio for today is calculated as

Shiller PE Ratio=Share Price/ E10
=48.60/3.65
=13.32

* 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's E10 for the quarter that ended in Sep. 2024 is calculated as:

For example, HSBC Holdings's adjusted earnings per share data for the three months ended in Sep. 2024 was:

Adj_EPS=Earnings per Share (Diluted)/CPI of Sep. 2024 (Change)*Current CPI (Sep. 2024)
=1.7/133.5000*133.5000
=1.700

Current CPI (Sep. 2024) = 133.5000.

HSBC Holdings Quarterly Data

Earnings per Share (Diluted) CPI Adj_EPS
201412 0.100 99.900 0.134
201503 1.300 99.600 1.742
201506 1.100 100.100 1.467
201509 1.250 100.200 1.665
201512 -0.400 100.400 -0.532
201603 1.100 100.400 1.463
201606 0.500 101.000 0.661
201609 -0.150 101.500 -0.197
201612 -1.100 102.200 -1.437
201703 0.800 102.700 1.040
201706 0.950 103.500 1.225
201709 0.750 104.300 0.960
201712 -0.100 105.000 -0.127
201803 0.750 105.100 0.953
201806 1.050 105.900 1.324
201809 0.950 106.600 1.190
201812 0.350 107.100 0.436
201903 1.050 107.000 1.310
201906 1.050 107.900 1.299
201909 0.750 108.400 0.924
201912 -1.350 108.500 -1.661
202003 0.450 108.600 0.553
202006 0.050 108.800 0.061
202009 0.350 109.200 0.428
202012 0.100 109.400 0.122
202103 0.950 109.700 1.156
202106 0.850 111.400 1.019
202109 0.850 112.400 1.010
202112 0.400 114.700 0.466
202203 0.700 116.500 0.802
202206 1.300 120.500 1.440
202209 0.500 122.300 0.546
202212 1.100 125.300 1.172
202303 2.600 126.800 2.737
202306 1.700 129.400 1.754
202309 1.450 130.100 1.488
202312 0.000 130.500 0.000
202403 2.700 131.600 2.739
202406 1.700 133.000 1.706
202409 1.700 133.500 1.700

Add all the adjusted EPS together and divide 10 will get our E10.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.


HSBC Holdings  (NYSE:HSBC) Shiller PE Ratio Explanation

Compared with the regular PE Ratio, which works poorly for cyclical businesses, the Shiller PE Ratio smoothed out the fluctuations of profit margins during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Shiller PE Ratio should give similar results to regular PE Ratio.

Compared with the PS Ratio, the Shiller PE Ratio makes the comparison between different industries more meaningful.


Be Aware

Shiller PE Ratio assumes that over the long term, businesses and profitability revert to their means. If a company's business model does not work in the future compared with the past, Shiller PE Ratio and PS Ratio will give false valuations.


HSBC Holdings Shiller PE Ratio Related Terms

Thank you for viewing the detailed overview of HSBC Holdings's Shiller PE Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


HSBC Holdings Business Description

Address
8 Canada Square, London, GBR, E14 5HQ
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.