HSBC Holdings (HSBA)

Is HSBC Holdings undervalued?

At £13.90, HSBC trades just below Oak Growth’s discounted-cash-flow intrinsic value of £14.20 — a margin of safety of only 2.2%. In plain terms, the shares look roughly fairly valued rather than cheap: there’s little discount to fair value to provide a cushion, which is why the screener flags it as a Watch rather than a buy. How intrinsic value is calculated →

The four pillars

HSBC passes one of the four pillars — Management — but currently fails Moat, Economics and Value. A strong, well-run bank, in other words, but one that the screen does not see as having a wide competitive moat or a compelling valuation at today’s price. For a value investor, passing only one pillar is a signal to wait rather than act. See the 4-pillar method →

Quality, value & momentum

The BP Score of 61/100 blends three things: Value (51/100 — how cheap it is), Quality (68/100 — how strong the business is) and Momentum (66/100 — which way the price is trending). The standout is Quality at 68 and Momentum at 66 — the business is solid and the price has been trending up. Value lags at 51, consistent with the thin margin of safety: the market has already re-rated the shares after a strong run.

Recent results

HSBC’s most recent market-moving announcement was its FY2025 results on 25 February 2026: pre-tax profit of $29.9bn beat the $28.4bn consensus, on revenue of $68.3bn (up 6%). The shares rose about 14% in the three days that followed — a genuine earnings beat, and part of why momentum scores well.

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