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Hong Kong Exchanges and Clearing Limited (80388) Fair Value & Analysis

Financial Services · HK · Market cap HK$518B (≈ $66.0B) · ISIN HK0388045442

What is Hong Kong Exchanges and Clearing Limited really worth?

HK Hong Kong Exchanges and Clearing Limited 80388 · HK
PriceHK$350.80
Fair ValueHK$280.07
Upside−20.2%
Quality64/100

A solid business, but trading 25% above our fair value of HK$280.07.

Strengths

Healthy Growth (revenue 3y +19.4 %/yr)
Highly profitable · 62.6% net margin
Low debt
Wide moat 86/100

Risks

!Evidence only medium, so the estimate is less certain
Evidence: Medium Range HK$210.05 – HK$350.08

Fair value as of: Aug 27, 2026

From 12 valuation models · updated 9 days ago

Share price −1.3% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • Solid but not exceptional quality (64/100) and above fair value, neither a clear bargain nor a standout compounder.
  • For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.

Price vs Fair Value (3 years)

HK$411.22 HK$137.24 Fair Value HK$280.07 Jun 2023 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 27, 2026.

How to read this chart

39‑month range HK$137.24 – HK$411.22 · fair‑value band HK$210.05 – HK$350.08 · the HK$350.80 price screens above the HK$280.07 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 27, 2026.

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Analysis

Hong Kong Exchanges and Clearing Limited (80388) currently trades at HK$350.80, while our model-based Fair Value estimate is HK$280.07, implying the stock looks roughly 25.3% overvalued today. The Quality Score stands at 64/100 (solid quality), in the Financial Services sector. Bull case: the Growth DCF group reads highest at a median of HK$562.61 per share, and 5 of the 12 models we run sit above the HK$350.80 price. Bear case: the Multiples group reads lowest at HK$55.15, and 7 of the 12 models stay below the price. Evidence for this calculation is medium.

Over the trailing twelve months, Hong Kong Exchanges and Clearing Limited generated revenue of HK$30.2B at a net margin of 62.6%. Revenue grew 19.0% year over year. It earns a return on equity of 35.0%. Fundamentals as of Aug 27, 2026

Our scenario range runs from HK$210.05 (bear case) to HK$350.08 (bull case); at HK$350.80, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 15% below its 52-week high and 12% above its 52-week low, currently below its 200-day average. For context, the median of 10 Financial Services peers we cover trades at −56% fair-value upside, at −20%, 80388 screens cheaper than that median.

Fair Value models

This estimate rests on fiscal year 2025 figures, and about 8 months have passed since. In that time the company retained roughly HK$4.99 per share, which is 1.8 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF best evidence HK$332.48 HK$562.61 HK$1,029 71
Owner Earnings HK$267.70 HK$486.35 HK$965.90 69
5Y P/E Exit HK$253.84 HK$393.69 HK$571.64 67
All 12 models by family
DCF Models
Owner Earnings HK$267.70 HK$486.35 HK$965.90 69
5Y P/E Exit HK$253.84 HK$393.69 HK$571.64 67
10Y P/E Exit HK$279.21 HK$431.73 HK$688.31 60
Earnings-Based
Graham-Dodd HK$81.79 HK$570.41 HK$800.49 60
Lynch FV HK$175.81 HK$251.15 HK$326.50 58
Dividend Discount
Gordon GGM HK$89.43 HK$195.23 HK$328.48 63
DDM Multi-Stage HK$89.43 HK$159.93 HK$203.46 64
Multiples
P/E Multiple HK$117.28 HK$156.37 HK$195.46 63
P/B Multiple HK$41.36 HK$55.15 HK$68.94 55
Asset-Based
NCAV (Graham) HK$19.70 HK$26.39 HK$39.39 54
Growth DCF
Growth DCF best evidence HK$332.48 HK$562.61 HK$1,029 71
Economic Profit
Residual Income HK$75.51 HK$89.31 HK$322.52 61

Widest divergence: Growth DCF (HK$562.61) versus Asset-Based (HK$26.39). Highest evidence: Growth DCF (71).

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Key figures & financial health

P/S ratio 17.2 TTM
EPS (TTM) HK$7.37
Net margin 61.5% FY2025
Return on equity 35.0% TTM
Return on assets (EBIT) 3.6% avg 4y
Operating margin 77.2% TTM
More key figures
Growth
Revenue (TTM) HK$30.2B TTM
Revenue growth (YoY) +19.0% 3y avg +19.4%
EPS growth (YoY) +27.0%

Figures from reported company fundamentals · as of Aug 27, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 64/100

Of which business quality 67 · Market factors (momentum, volatility) 46

Profitability 59
Margins and returns on capital today
Quality Growth 64
Are margins and returns improving?
Cashflow 80
Earnings quality: real cash, not paper profit
Investment 42
Disciplined investing over empire-building
Low Volatility 79
Calm price path (market factor)
Momentum 36
Price trend over the last 3–12 months (market factor)
52W Momentum 28
Distance to the 52-week high (market factor)
Net Issuance 82
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

Hong Kong Exchanges and Clearing Limited, together with its subsidiaries, owns and operates stock and futures exchanges, and related clearing houses in Hong Kong, the United Kingdom, and Mainland China. It operates through Cash, Equity and Financial Derivatives, Commodities, and Data and Connectivity segments.

Full company description

Hong Kong Exchanges and Clearing Limited, together with its subsidiaries, owns and operates stock and futures exchanges, and related clearing houses in Hong Kong, the United Kingdom, and Mainland China. It operates through Cash, Equity and Financial Derivatives, Commodities, and Data and Connectivity segments. The Cash segment covers various equity products traded on the cash market platforms of the Stock Exchange of Hong Kong Limited, as well as through the Shanghai-Hong Kong and the Shenzhen-Hong Kong stock connects; clearing, settlement and custodian, listing, depository, and nominee services; and other related activities. Its Equity and Financial Derivatives segment provides and maintains trading and clearing platforms for a range of equity and financial derivative products, such as stock and equity index futures and options, derivative warrants, callable bull/bear contracts and warrants, and over the counter derivatives contracts. The Commodities segment operates an exchange for the trading of base and ferrous metals futures and options contracts in the United Kingdom; and operates Qianhai Mercantile Exchange Co., Ltd., a commodity trading platform in Mainland China. This segment also covers commodities contracts traded on Futures Exchange. Its Data and Connectivity segment offers various services that provides access to the platform and infrastructure, as well as services of BayConnect Technology Company Limited; network, terminal user, data line and software sublicense, and hosting services; and sells market data relating to the Hong Kong cash and derivatives markets. The company serves issuers and investors. Hong Kong Exchanges and Clearing Limited was incorporated in 1999 and is based in Central, Hong Kong.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2025 · reported fiscal years

Hong Kong Exchanges and Clearing Limited reported revenue of HK$28.9B in FY2025 versus HK$16.9B in FY2022, a compound +19.4%/yr. Reported net income was HK$17.8B in FY2025, compounding +20.8%/yr from FY2022.

Growth Quality 100/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
HK$28.9B
Latest YoY
+29.6%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+19.4%
Value creation/yr (3Y) Earnings growth per share (CAGR 3 years) plus dividend yield: value created per share and year.
+17.4% (17.4 + 0.0)
Revenue +19.4%/yr
FY22 HK$16.9B
FY23 HK$20.4B
FY24 HK$22.3B
FY25 HK$28.9B
Net income +20.8%/yr
FY22 HK$10.1B
FY23 HK$11.9B
FY24 HK$13.1B
FY25 HK$17.8B

80388 screens 25% overvalued. Compare with S&P Global Inc →

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Cite: Fair Value Calculator (2026). "Hong Kong Exchanges and Clearing Limited Fair Value". https://www.fairvalue-calculator.com/stock/80388

Earlier news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

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Frequently asked questions

Is Hong Kong Exchanges and Clearing Limited (80388) overvalued or undervalued?
As of Aug 27, 2026, our model estimates a fair value of HK$280.07 versus a price of HK$350.80, about −20% upside (overvalued).
What is the fair value of 80388?
Our model-based fair value for Hong Kong Exchanges and Clearing Limited is HK$280.07 (as of Aug 27, 2026), built from audited fundamentals. The current price: HK$350.80.
What is the quality score of 80388?
Hong Kong Exchanges and Clearing Limited has a Quality Score of 64/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Hong Kong Exchanges and Clearing Limited (80388)?
Hong Kong Exchanges and Clearing Limited reported trailing-twelve-month revenue of about HK$30.2B (latest available figure, as of Aug 27, 2026).
What is the net profit margin of 80388?
The net profit margin of Hong Kong Exchanges and Clearing Limited is about 62.6%, meaning it keeps roughly 62.6% of revenue as net income. Based on the latest reported figures.
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