HSBC Knight’s tale

Knight Vinke has a decent case that HSBC is undervalued. The activist investor has said that the global bank’s shares are undervalued by 50%, or £50bn. True, on the face of it that claims looks hard to justify. Although HSBC’s stock has been a poor long-term performer, it has perked up this year. And on a sum of the parts calculation, the shares look reasonably priced. Putting HSBC’s European business on a peer multiple of 9.5 times next year’s earnings, North America on 10.5 and Hong Kong on 1...