HSBC Holdings plc ADR (HSBC) is slightly overvalued and Wells Fargo & Co (WFC) is fairly valued.
Both trade above our estimate of their intrinsic value. WFC is the closer of the two: -5%, 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 1.40x, the multiple a 12.5% return on equity justifies, blended with earnings, values the shares at $79.44; the price of $83.15 is 5% above that value.
Leak Score 45/100 on 9 of 12 signals
| Metric | HSBC | WFC |
|---|---|---|
| Verdict | Slightly overvalued | Fairly valued |
| Price | $101.59 | $83.15 |
| Intrinsic value | $92.20 | $79.44 |
| Margin of safety | -10% | -5% |
| Leak Score | 0/100 (3/12) | 45/100 (9/12) |
| Market cap | $348.4B | $251.4B |
| Revenue growth, 5 years | 12.1% | 8.6% |
| Operating margin | 15.3% | 21.9% |
| Net margin | 17.8% | 16.8% |
| Return on equity | 14.0% | 12.5% |
| Debt to equity | 3.29 | 2.57 |
| P/E | 14.6x | 12.1x |
| Forward P/E | 10.8x | 10.4x |
| P/B | 2.0x | 1.5x |
| Dividend yield | 4.1% | 2.3% |