Hang Seng Bank Limited

DB:HSB0 Stock Report

Market Cap: €21.1b

Hang Seng Bank Valuation

Is HSB0 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of HSB0 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: HSB0 (€10.6) is trading below our estimate of fair value (€18.84)

Significantly Below Fair Value: HSB0 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for HSB0?

Key metric: As HSB0 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for HSB0. This is calculated by dividing HSB0's market cap by their current earnings.
What is HSB0's PE Ratio?
PE Ratio10.1x
EarningsHK$17.21b
Market CapHK$173.73b

Price to Earnings Ratio vs Peers

How does HSB0's PE Ratio compare to its peers?

The above table shows the PE ratio for HSB0 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average8.4x
CBK Commerzbank
7.9x8.8%€16.9b
PCZ ProCredit Holding
4.4x10.7%€461.8m
MBK Merkur PrivatBank KgaA
10x8.6%€108.9m
2891 CTBC Financial Holding
11.4x0.9%NT$739.7b
HSB0 Hang Seng Bank
10.1x1.6%€173.7b

Price-To-Earnings vs Peers: HSB0 is expensive based on its Price-To-Earnings Ratio (10.1x) compared to the peer average (8.4x).

Price to Earnings Ratio vs Industry

How does HSB0's PE Ratio compare vs other companies in the European Banks Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
HSB0 10.1xIndustry Avg. 7.2xNo. of Companies45PE0612182430+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: HSB0 is expensive based on its Price-To-Earnings Ratio (10.1x) compared to the European Banks industry average (7.3x).

Price to Earnings Ratio vs Fair Ratio

What is HSB0's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

HSB0 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio10.1x
Fair PE Ratio10.6x

Price-To-Earnings vs Fair Ratio: HSB0 is good value based on its Price-To-Earnings Ratio (10.1x) compared to the estimated Fair Price-To-Earnings Ratio (10.6x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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