Commercial Bank Valuation

Commercial Bank Valuation PDF

Author: William D. Miller

Publisher:

Published: 1995-11-03

Total Pages: 298

ISBN-13:

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The value of a bank is a complex and involved topic. Dertermining value requires an understanding of the purposed of the valuation, the underlying business, the assets involved, the outlook for the market served, competitive position, financial history, and a host of other factors. For example, establishing the value based solely on a bank's book value is a convenient shorthand, but not a good technique of establishing actual value. Regardless of the potential need for a proper valuation, commercial banks and bank holding companies have several characteristics that distinguishe them from other types of businesses and that influence the application of valuation techniques. It is critical to bear these in mind during the valuation process. Provides a thorough and practical discussion of valuation and techniques that apply to the banking and financial services industry. By necessity, however, the scope of the discussion goes beyond valuation. It is necessary to understand various transactional processes (e.g., the merger & acquisition process), target bank analysis, tax ramification, and specific accounting rules, in addition to valuation methodology. Consequently, this title is a beneficial primer for those with only a cursory knowledge of banking and valuation as well as a useful reference for seasoned professionals.

The Bank Valuation Handbook

The Bank Valuation Handbook PDF

Author: Hazel J. Johnson

Publisher: Irwin Professional Publishing

Published: 1996

Total Pages: 372

ISBN-13:

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The Bank Valuation Handbook goes far beyond merely explaining the relevant theories. It is a step-by-step, hand-on guide to market valuation. The Bank Valuation Handbook has a specific model for virtually every line item on the balance sheet and includes examples of its implementation.

The Valuation of Financial Companies

The Valuation of Financial Companies PDF

Author: Mario Massari

Publisher: John Wiley & Sons

Published: 2014-03-31

Total Pages: 260

ISBN-13: 1118617339

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This book presents the main valuation approaches that can be used to value financial institutions. By sketching 1) the different business models of banks (both commercial and investment banks) and insurance companies (life, property and casualty and reinsurance); 2) the structure and peculiarities of financial institutions’ reporting and financial statements; and 3) the main features of regulatory capital frameworks for banking and insurance (ie Basel III, Solvency II), the book addresses why such elements make the valuation of financial institutions different from the valuation of non-financial companies. The book then features the valuation models that can be used to determine the value of banks and insurance companies including the Discounted Cash Flow, Dividend Discount Model, and Residual Income Model (with the appropriate estimation techniques for the cost of capital and cash flow in financial industries). The main techniques to perform the relative valuation of financial institutions are then presented: along the traditional multiples (P/E, P/BV, P/TBV, P/NAV), the multiples based on industry-specific value drivers are discussed (for example, P/Pre Provision Profit, P/Deposits, P/Premiums, P/Number of branches). Further valuation tools such as the “Value Maps” or the “Warranted Equity Method” will be explained and discussed. The closing section of the book will briefly focus on the valuation of specific financial companies/vehicles such as closed-end funds, private equity funds, leasing companies, etc.

Banks and Shareholder Value

Banks and Shareholder Value PDF

Author: Stephanie Gross

Publisher: Springer Science & Business Media

Published: 2007-11-06

Total Pages: 297

ISBN-13: 3835092782

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Stephanie Gross focuses on three sets of questions on shareholder value of banks and analyses its measurement, empirical relevance and value drivers.

Bank Valuation Demystified

Bank Valuation Demystified PDF

Author: Hamza ZARGUI

Publisher:

Published: 2020-03-06

Total Pages: 131

ISBN-13:

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You no longer need to read thousand-page books to learn valuation. This book delivers a practical, flexible, and quick way to learn and understand not only the valuation of commercial banks but valuation in general. This book provides practical advice for finance students, practitioners, and anyone interested in valuation and offers guidelines much needed to value commercial banks. Through precise, guided, and step-by-step learning materials, it explains the valuation process from a fundamentally sound perspective. It starts from the basics and helps the reader to look at valuation from an investment point of view. This book includes real-world case studies and examples that will help you: understand valuation in general, and particularly the valuation of commercial banks forecast profits using your assumptions estimate the cost of equity and profit growth implement and master DCF models master relative valuation using P/E, P/B, and other financial ratios build your valuation skills This book is a must-have in your practical valuation toolkit.

Valuing Banks

Valuing Banks PDF

Author: Federico Beltrame

Publisher: Springer

Published: 2016-06-27

Total Pages: 261

ISBN-13: 1137561424

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This book aims to overcome the limitations the variations in bank-specifics impose by providing a bank-specific valuation theoretical framework and a new asset-side model. The book includes also a constructive comparison of equity and asset side methods. The authors present a novel framework entitled, the “Asset Mark-down Model”. This method incorporates an Adjusted Present Value model, which allows practitioners to identify the main value creation sources of a particular bank: from asset-based cash flow and the mark-down on deposits, to tax benefits on bearing liabilities. Through the implementation of this framework, the authors offer a more accurate and more specific approach to valuing banks.

Valuation Uncertainty and Ipo'S

Valuation Uncertainty and Ipo'S PDF

Author: Gregory Hebb

Publisher:

Published: 2001

Total Pages: 34

ISBN-13:

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This paper examines the microstructure trading characteristics of initial public offerings underwritten by commercial banks. The degree of asymmetric information present in the market for these issues is measured by the price impact of trades and the size of the bid-ask spread. If there is more uncertainty in the market about the value of issues underwritten by commercial banks, than these securities should exhibit a greater degree of asymmetric information in their trading environment than non-commercial bank underwritten initial public offerings. More uncertainty could be due to a perceived conflict of interest when commercial banks underwrite securities. Conversely, if the market believes that commercial bank involvement signals firm quality and provides additional information to the public, less asymmetric information will be present in the market. This topic has recently gained in importance with the passage of the Financial Services Reform Act in November 1999 and the inevitable move towards universal banking. We find that, when characteristics of the IPO are controlled for, trades in commercial bank underwritten issues exhibit significantly higher price impacts. This is consistent with greater uncertainty about the value of commercial bank underwritten IPO's and also consistent with the market perceiving a possible conflict of interest on the part of commercial banks.

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