HSBC Holdings plc ADR (HSBC) is fairly valued and Sumitomo Mitsui Financial Group Inc ADR (SMFG) is overvalued.
Against our estimates of intrinsic value, HSBC trades at the wider discount: a margin of safety of +1%, against -119% for SMFG.
Values as of the 19 Oct 2026 close.
Book value at 2.05x, the multiple a 14.0% return on equity justifies, blended with earnings, values the shares at $93.52; the price of $92.96 is 1% below that value.
Leak Score 46/100 on 10 of 12 signals
Book value at 1.52x, the multiple a 11.2% return on equity justifies, blended with earnings, values the shares at $11.15; the price of $24.41 is 119% above that value.
Leak Score 28/100 on 9 of 12 signals
| Metric | HSBC | SMFG |
|---|---|---|
| Verdict | Fairly valued | Overvalued |
| Price | $92.96 | $24.41 |
| Intrinsic value | $93.52 | $11.15 |
| Margin of safety | +1% | -119% |
| Leak Score | 46/100 (10/12) | 28/100 (9/12) |
| Market cap | $318.6B | $306.9B |
| Revenue growth, 5 years | 12.1% | 14.2% |
| Operating margin | 15.3% | 22.1% |
| Net margin | 17.8% | 16.4% |
| Return on equity | 14.0% | 11.2% |
| Debt to equity | 3.29 | 3.67 |
| P/E | 13.3x | 28.1x |
| Forward P/E | 9.8x | 13.9x |
| P/B | 1.8x | 3.1x |
| Dividend yield | 4.5% | 2.5% |