HSBC Holdings plc ADR (HSBC) is slightly overvalued and Banco Santander SA ADR (SAN) is fairly valued.
Against our estimates of intrinsic value, SAN trades at the wider discount: a margin of safety of +1%, against -10% for HSBC.
Values as of the 22 Sept 2026 close.
Book value at 2.00x, the multiple a 14.0% return on equity justifies, blended with earnings, values the shares at $92.20; the price of $101.59 is 10% above that value.
Leak Score 0/100 on 3 of 12 signals
Book value at 1.64x, the multiple a 13.0% return on equity justifies, blended with earnings, values the shares at $14.61; the price of $14.49 is 1% below that value.
Leak Score 0/100 on 3 of 12 signals
| Metric | HSBC | SAN |
|---|---|---|
| Verdict | Slightly overvalued | Fairly valued |
| Price | $101.59 | $14.49 |
| Intrinsic value | $92.20 | $14.61 |
| Margin of safety | -10% | +1% |
| Leak Score | 0/100 (3/12) | 0/100 (3/12) |
| Market cap | $348.4B | $210.8B |
| Revenue growth, 5 years | 12.1% | 13.8% |
| Operating margin | 15.3% | 15.2% |
| Net margin | 17.8% | 13.1% |
| Return on equity | 14.0% | 13.0% |
| Debt to equity | 3.29 | 4.12 |
| P/E | 14.6x | 11.4x |
| Forward P/E | 10.8x | 10.0x |
| P/B | 2.0x | 1.7x |
| Dividend yield | 4.1% | 2.1% |