Is HSBC the greatest bargain in FTSE 100?

A series of Ftse 100 The actions seem potentially cheap.

Carry HSBC (LSE: HSBA) as an example. 207% of a minimum of 2020 has been triggered. But it still quotes in a price ratio of only 9, and offers a 5.5% dividend yield to start.

Could it be the biggest bargain in the blue chip index at this time?

The bank has been remodeling in recent years, leaving certain markets. It is still a considerable force in the key markets, especially Hong Kong and the United Kingdom.

After having sold several businesses, HSBC continues to remodeled around a couple of centers, in Asia and the United Kingdom. That adds geopolitical risk.

On the positive side, it offers the benefit of diversification and allows the experienced and long data bank to benefit from the opportunities for economic growth in one region, even if the other is working with less force.

HSBC is not the most exciting business, but as an investor I like its strong brand, proven business model, large customer base and an important continuous cash generation potential. That last point can help support the dividend.

A yield of 5.5% is already well above the FTSE 100 average, but some HSBC shareholders are improving. After all, those who bought in the 2020s that I mentioned now would obtain a dividend yield close to 17%.

The price of the action could be a good value, but it entails risks

While this relationship may seem low, it is more or less to the course between banks that quote in London. Is lower than the 11 of Barclays But in line with both Lloyds and Natwest.

That points to a concern, I think some investors (including myself) have about the sector. While profits have been strong in recent years, a weak and uncertain global economy could mean greater breaches of loans in the coming years.

If that happens, I would expect banks, including HSBC, to affect their profits.

If the global economy increases a team, banks may seem undervalued to today's prices. That could mean a higher action price for HSBC from now on.

However, the risk environment does not make me feel comfortable investing in banks at this time.

I doubt that this is the best part of the FTSE 100 Gangas

So, I will not invest in HSBC.

Its performance is attractive, but it is well below what it currently offers other ftse 100 actions that I have, such as M & g and Legal and general.

As for the assessment, it seems quite cheap, but no more than some rivals. As for whether that cheap appearance is in fact correct, time will say it.

If banks like HSBC find more chocas waters, their current valuations may not be cheap despite trade with a single digit P/E relationship. I prefer more security room.