What is HSBC Holdings plc (HSBC)'s PEG ratio?

HSBC Holdings plc (HSBC) has a PEG ratio of 0.38 (Potentially Undervalued), based on a PE ratio of 17.2 and expected EPS growth of 44.8% (5-Year EPS CAGR).

Is HSBC undervalued based on its PEG ratio?

A PEG below 1.0 is conventionally read as potentially undervalued, 1.0–2.0 as fairly valued, and above 2.0 as potentially overvalued relative to growth. At 0.38, HSBC Holdings plc (HSBC) screens as "Potentially Undervalued". PEG is one signal, not investment advice — see the full DCF fair value at evidinvest.com/valuation/HSBC.

HSBC Holdings plc (HSBC) PEG Ratio

Potentially Undervalued

PE ratio relative to earnings growth — is the valuation justified?

0.38

PEG Ratio

PEG ratio is generally unreliable for Financial Services companies — earnings are driven by interest margins and provisions

PEG ratio is generally unreliable for Financial Services companies

0.38

Growth Rate Source

Good Data Quality5-Year EPS CAGR

Current Price

$103.97

TTM EPS

$6.05

P/E Ratio

17.19

Growth Rate

44.8%

5-Year EPS CAGR

Sector

Financial Services

Banks - Diversified

Calculated

7/28/2026

7:28:11 PM

Peer Comparison

Sample Size

7 peers

Industry Median PEG

0.57

25th Percentile

0.42

75th Percentile

1.64

HSBC PEG (0.38) vs Industry Median (0.57): 33% discount

Symbol	Company	PEG	P/E	Growth	vs HSBC
DB	Deutsche Bank AG	0.17	11.9	68.9%	-55%
BCS	Barclays PLC	0.42	16.4	38.8%	+10%
LYG	Lloyds Banking Group plc	0.50	20.4	41.3%	+29%
ING	ING Groep N.V.	0.57	15.5	27.1%	+49%
RY	Royal Bank of Canada	1.09	13.6	12.5%	+184%

How to Interpret PEG Ratio

PEG < 1.0 — Potentially Undervalued. The stock may be priced below its earnings growth rate, suggesting a potential buying opportunity.

PEG 1.0–2.0 — Fairly Valued. The stock price is roughly in line with its earnings growth. A PEG of 1.0 is often considered "fair value."

PEG > 2.0 — Potentially Overvalued. The stock may be priced above what its earnings growth justifies.

Limitations:PEG ratios are less reliable for financial firms (earnings driven by interest margins), companies with negative/zero earnings growth, and hypergrowth companies (>100% growth) where the ratio may appear misleadingly low. Always use PEG alongside other valuation metrics.

HSBC Holdings plc (HSBC) PEG Ratio

Peer Comparison

How to Interpret PEG Ratio

More on HSBC

Compare with peers

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HSBC Holdings plc (HSBC) PEG Ratio

Peer Comparison

How to Interpret PEG Ratio

More on HSBC

Compare with peers

Explore