0388.HK · Intrinsic value
Is Hong Kong Exchanges and Clearing Limited (0388.HK) overvalued or undervalued?
As of Oct 19, 2026, TickerWorth's valuation lenses put Hong Kong Exchanges and Clearing Limited (0388.HK) at HK$90.62 – HK$377.92, too broad a range to say where the delayed market price of HK$374.60 sits in it, so we do not call it over- or undervalued. It is a model estimate, and every input behind it is sourced below.
Model by Miraaj Patel · generated from market data · Updated Oct 19, 2026 · How these pages are made
What is 0388.HK worth?
- Fair-value range
- HK$90.62 – HK$377.92
- Market price
- HK$374.60
- Gap to fair value
- —
- Verdict
- Too wide to call
Reverse DCF: Today's price implies revenue growth of 11.7% a year for 5 years; our model assumes 11.3% a year on average over the same horizon.
What is 0388.HK's TickerWorth Score?
Middle of the pack — real strengths and real weaknesses
Compared with Financial Services companies in Hong Kong
Its strongest point: a profitable, high-quality business. Its weakest: recent price trend has been weak.
- Value · 37 of 100
Cheaper than 37% of Financial Services companies worldwide
- Price vs worth · 24 of 100
- Quality · 92 of 100
More profitable than 92% of Financial Services companies worldwide
- Financial health · 63 of 100
Financially stronger than 63% of Financial Services companies worldwide
- Growth · 51 of 100
Growing faster than 51% of Financial Services companies worldwide
- Momentum · 11 of 100
Outperformed 11% of Financial Services companies worldwide over the past year
Confidence: Medium confidence · Scored
Get the Undervalued Company of the Week.
Why 0388.HK gets a range, not one number
At a recent price of 374.60, Hong Kong Exchanges and Clearing Limited (0388.HK) sits inside a range too wide to call either way: our valuation lenses put the business somewhere between 90.62 and 377.92 per share. They disagree too widely for us to state a single fair value. We publish the range rather than a midpoint because a number that precise would claim more than the methods can support. This is an educational model, not a price target or a recommendation.
Read the full reasoning
The valuation discounts Hong Kong Exchanges and Clearing Limited's projected free cash flows at a weighted-average cost of capital (WACC) of 9.7%, with a long-run terminal growth rate of 2.5%. About 73% of the enterprise value comes from the terminal value — the portion beyond the explicit forecast window — which is typical for a stable, cash-generative business and a reminder that small changes in the discount rate or terminal growth assumption swing the intrinsic value meaningfully.
Running the DCF in reverse — solving for the growth the current price already assumes — the market is implying roughly 11.7% annual revenue growth for 0388.HK. Our base case instead compounds to about 11.3% a year over the same forecast, so the market's implied growth is broadly in line with our base case. The reverse-DCF is a quick sanity check: it reframes 'is this stock cheap?' as 'do I believe the growth the price requires?' rather than arguing over a single point estimate of fair value.
Sensitivity matters more than any single number. Across a reasonable band of discount-rate assumptions, 0388.HK's modeled DCF value ranges from about 319.01 to 498.49 per share. If that range still sits below today's price, the market is optimistic relative to the model across the whole band; if it brackets the price, the stock is roughly fairly valued on our assumptions. Use the interactive slider to see exactly where your own cost-of-capital view lands.
How to read this page: the DCF fair value is what Hong Kong Exchanges and Clearing Limited would be worth if its cash flows grow as modeled and are discounted at the stated WACC. The assumptions table shows every input and its source; the reverse-DCF shows what the market believes; the sensitivity band shows how fragile the answer is. None of this is investment advice — it is a transparent, auditable framework for forming your own view of 0388.HK's intrinsic value. Figures update as new filings and prices come in.
Every input behind 0388.HK's DCF
| Input | Value |
|---|---|
| Base-year revenueLive feed — totalRevenue (TTM) | 31,487,000,000 |
| Base EBIT marginComputed — trailing operatingMargins, held roughly flat | 60.0% |
| Forecast revenue growthESTIMATEAssumption — TickerWorth's 5-year explicit forecast | 19% → 15% → 11% → 8% → 4% |
| Risk-free rateLive feed — US 10-year Treasury yield (^TNX) | 5.2% |
| BetaLive feed — yfinance, 5-year monthly beta vs the S&P 500 (clamped to 0.4–2.5) | 0.96 |
| Terminal growthESTIMATEAssumption — TickerWorth house default 2.5%, held below WACC | 2.5% |
| Diluted sharesLive feed — sharesOutstanding | 1,264M |
| Market priceDelayed quote · as of 2026-10-19 17:02 UTC | 374.60 |
Change 0388.HK's assumptions
The discount-rate dial and the editable model
ProChange growth, margin and WACC yourself — Pro (7-day free trial, card required).
What does Hong Kong Exchanges and Clearing Limited do?
What does it do?
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. It operates in the Financial Data & Stock Exchanges industry (Financial Services sector), headquartered in Hong Kong. The company employs roughly 2,566 people.
How does it make money?
The business turns $31.5B in annual revenue into profit. Out of every $100 of sales, about $76 is left as operating profit (operating margin of 76.0%), after a 97% gross margin on the products/services it sells. After all costs, taxes and interest, 62.9% of revenue becomes bottom-line net profit.
Is it financially healthy?
Financially it looks mixed: carries moderate debt (1.6× equity), can just cover its short-term bills (1.1× current ratio), and is currently profitable.
0388.HK insider trading
Insider filings are available for US-listed companies only.
Common questions
What is 0388.HK's intrinsic value?
TickerWorth's valuation lenses put Hong Kong Exchanges and Clearing Limited (0388.HK) between 90.62 and 377.92 per share, versus a market price of 374.60. They disagree too widely for us to state a single fair value, so we publish the range.
Is 0388.HK overvalued or undervalued?
At 374.60 the price sits inside a range too wide to call either way. We don't call 0388.HK overvalued or undervalued from a range this wide. This is an educational estimate, not advice.
What discount rate is used for 0388.HK?
A WACC of 9.7% and a terminal growth rate of 2.5%.
Is Hong Kong Exchanges and Clearing stock undervalued?
TickerWorth's fair-value range for Hong Kong Exchanges and Clearing Limited (0388.HK) is HK$90.62 – HK$377.92 against a market price of HK$374.60. Too wide to call. We publish a range here, not one number, so we do not call it over- or undervalued. This is a model estimate, not investment advice.
Hong Kong Exchanges and Clearing (0388.HK) DCF valuation and fair value
Our fair-value range for Hong Kong Exchanges and Clearing Limited (0388.HK) is HK$90.62 – HK$377.92, built on a 9.7% discount rate (WACC) and 2.5% terminal growth. It blends our discounted-cash-flow model with other valuation lenses. Every assumption is listed on this page with its source.
What growth is priced into Hong Kong Exchanges and Clearing stock?
Today's price implies revenue growth of 11.7% a year for 5 years; our model assumes 11.3% a year on average over the same horizon. This is a reverse DCF: it holds our cash-flow model's other inputs and solves for the revenue growth that makes the model equal today's price of HK$374.60. A model estimate, not investment advice.
Hong Kong Exchanges and Clearing (0388.HK) insider trading
We have no recent SEC Form 4 insider filings on file for Hong Kong Exchanges and Clearing Limited (0388.HK). Form 4 covers US-listed companies only.
Other ways into the coverage
Not investment advice. TickerWorth Score is a model output.
Educational tool. Every output reflects the assumptions shown — not a prediction and not investment advice. TickerWorth is not a licensed investment adviser, and these figures are estimates from public filings and market data that can be wrong.