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HSBC Holdings (HSBC Holdings) Cyclically Adjusted Book per Share : $10.61 (As of Dec. 2023)


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What is HSBC Holdings Cyclically Adjusted Book per Share?

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Book per Share and the Cyclically Adjusted PB Ratio. The Cyclically Adjusted Book per Share is the average of the inflation adjusted Book Value per Share of a company over the past 10 years.

HSBC Holdings's adjusted book value per share for the three months ended in Dec. 2023 was $9.621. Add all the adjusted book value per share for the past 10 years together and divide the count will get our Cyclically Adjusted Book per Share, which is $10.61 for the trailing ten years ended in Dec. 2023.

During the past 12 months, HSBC Holdings's average Cyclically Adjusted Book Growth Rate was 3.40% per year. During the past 3 years, the average Cyclically Adjusted Book Growth Rate was 6.00% per year. During the past 5 years, the average Cyclically Adjusted Book Growth Rate was 5.00% per year. During the past 10 years, the average Cyclically Adjusted Book Growth Rate was 4.40% per year. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Cyclically Adjusted Book Growth Rate using Cyclically Adjusted Book per Share data.

During the past 13 years, the highest 3-Year average Cyclically Adjusted Book Growth Rate of HSBC Holdings was 6.00% per year. The lowest was 3.20% per year. And the median was 4.70% per year.

As of today (2024-04-27), HSBC Holdings's current stock price is $8.24. HSBC Holdings's Cyclically Adjusted Book per Share for the quarter that ended in Dec. 2023 was $10.61. HSBC Holdings's Cyclically Adjusted PB Ratio of today is 0.78.

During the past 13 years, the highest Cyclically Adjusted PB Ratio of HSBC Holdings was 1.45. The lowest was 0.41. And the median was 0.91.


HSBC Holdings Cyclically Adjusted Book per Share Historical Data

The historical data trend for HSBC Holdings's Cyclically Adjusted Book per Share can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

HSBC Holdings Cyclically Adjusted Book per Share Chart

HSBC Holdings Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cyclically Adjusted Book per Share
Get a 7-Day Free Trial Premium Member Only Premium Member Only 8.88 9.52 9.87 9.62 10.61

HSBC Holdings Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Cyclically Adjusted Book per Share Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 9.62 10.20 10.20 10.20 10.61

Competitive Comparison of HSBC Holdings's Cyclically Adjusted Book per Share

For the Banks - Diversified subindustry, HSBC Holdings's Cyclically Adjusted PB Ratio, along with its competitors' market caps and Cyclically Adjusted PB Ratio data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


HSBC Holdings's Cyclically Adjusted PB Ratio Distribution in the Banks Industry

For the Banks industry and Financial Services sector, HSBC Holdings's Cyclically Adjusted PB Ratio distribution charts can be found below:

* The bar in red indicates where HSBC Holdings's Cyclically Adjusted PB Ratio falls into.



HSBC Holdings Cyclically Adjusted Book per Share Calculation

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Book per Share and the Cyclically Adjusted PB Ratio. The Cyclically Adjusted Book per Share is the average of the inflation adjusted Book Value per Share of a company over the past 10 years.

What is Cyclically Adjusted Book per Share? How do we calculate Cyclically Adjusted Book per Share?

Cyclically Adjusted Book per Share is the average of the inflation adjusted Book Value per Share of a company over the past 10 years. Let's use an example to explain.

If we want to calculate the Cyclically Adjusted Book per Share of Wal-Mart (WMT) for Dec. 31, 2010, we need to have the inflation data and the book value per share from 2001 through 2010.

We adjusted the 2001 book value per share data with the total inflation from 2001 through 2010 to the equivalent book value in 2010. If the total inflation from 2001 to 2010 is 40%, and Wal-Mart's book value is $1 a share in 2001, then the 2001's equivalent book value in 2010 is $1.4 a share. If Wal-Mart's book value is $1 again in 2002, and the total inflation from 2002 through 2010 is 35%, then the equivalent 2002 book value in 2010 is $1.35. So on and so forth, you get the equivalent book value per share of past 10 years. Then you add them together and divided the sum by the count to get Cyclically Adjusted Book per Share.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.

For example, HSBC Holdings's adjusted Book Value per Share data for the three months ended in Dec. 2023 was:

Adj_Book= Book Value per Share /CPI of Dec. 2023 (Change)*Current CPI (Dec. 2023)
=9.621/130.0000*130.0000
=9.621

Current CPI (Dec. 2023) = 130.0000.

HSBC Holdings Quarterly Data

Book Value per Share CPI Adj_Book
201403 9.741 99.300 12.753
201406 9.978 99.800 12.997
201409 10.108 100.000 13.140
201412 9.910 99.900 12.896
201503 9.708 99.600 12.671
201506 9.860 100.100 12.805
201509 9.840 100.200 12.766
201512 9.574 100.400 12.397
201603 9.701 100.400 12.561
201606 9.653 101.000 12.425
201609 9.429 101.500 12.077
201612 8.686 102.200 11.049
201703 9.015 102.700 11.411
201706 9.246 103.500 11.613
201709 9.520 104.300 11.866
201712 9.362 105.000 11.591
201803 9.770 105.100 12.085
201806 9.197 105.900 11.290
201809 9.301 106.600 11.343
201812 9.296 107.100 11.284
201903 9.374 107.000 11.389
201906 9.521 107.900 11.471
201909 9.354 108.400 11.218
201912 8.913 108.500 10.679
202003 9.318 108.600 11.154
202006 9.184 108.800 10.974
202009 9.422 109.200 11.217
202012 9.645 109.400 11.461
202103 9.754 109.700 11.559
202106 9.802 111.400 11.439
202109 9.809 112.400 11.345
202112 9.161 114.700 10.383
202203 9.830 116.500 10.969
202206 9.245 120.500 9.974
202209 8.897 122.300 9.457
202212 8.906 125.300 9.240
202303 9.632 126.800 9.875
202306 9.294 129.400 9.337
202309 9.480 130.100 9.473
202312 9.621 130.000 9.621

Add all the adjusted book value per share together and divide the count will get our Cyclically Adjusted Book per Share.


HSBC Holdings  (OTCPK:HBCYF) Cyclically Adjusted Book per Share Explanation

If a company grows much fast than inflation, Cyclically Adjusted Book per Share may underestimate the company's equity. Cyclically Adjusted PB Ratio can seem to be too high even the actual PB Ratio is low.

For the Cyclically Adjusted PB Ratio, the book value of the past 10 years are inflation-adjusted and averaged. The result is used for P/B calculation. Since it looks at the average over the last 10 years, the Cyclically Adjusted PB Ratio is also called CAPB Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PB Ratio. The Cyclically Adjusted Book per Share is the average of the inflation adjusted book value per share of a company over the past 10 years.

HSBC Holdings's Cyclically Adjusted PB Ratio of today is calculated as

Cyclically Adjusted PB Ratio=Share Price/Cyclically Adjusted Book per Share
=8.24/10.61
=0.78

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

During the past 13 years, the highest Cyclically Adjusted PB Ratio of HSBC Holdings was 1.45. The lowest was 0.41. And the median was 0.91.


Be Aware

Cyclically Adjusted PB Ratio works better for cyclical companies. It gives you a better idea on the company's real book value.


HSBC Holdings Cyclically Adjusted Book per Share Related Terms

Thank you for viewing the detailed overview of HSBC Holdings's Cyclically Adjusted Book per Share provided by GuruFocus.com. Please click on the following links to see related term pages.


HSBC Holdings (HSBC Holdings) Business Description

Industry
Address
8 Canada Square, London, GBR, E14 5HQ
Established in 1865 in Hong Kong, London-based HSBC is one of the largest banks in the world, with assets of USD 3 trillion and 40 million customers worldwide. It operates across 64 countries with around 220,000 full-time staff. Key regions include Asia, Europe, the Middle East and North Africa, and North America. The United Kingdom and Hong Kong are the two largest markets for the bank. The bank offers retail, commercial and institutional banking, global banking and markets, wealth management, and private banking.