Using CFA level 2 knowledge, I tried to calculate bank stock intrinsic value.
First, There three kinds of incomes (Net Income, Comprehensive Income, Net Income from continuing operation) on income statement. Does anybody know which income should I take in order to calcualte the intrinsic value?
Second, I think beta can be different depend on calculation periods, market situation (bullish, bearish).
Am I right? If so how can I calculate the correct beta?
Some internet sites shows different betas for same stock.
Bank stocks are tricky since most of the assets AND liabilites are financial instruments. There’s really no tangible asset besides PP&E. I don’t touch individual bank stocks so maybe someone else can help you there.
As far as beta, it’s just a correlation of returns between the stock and an index. The reason you see different betas are probably based on what constitutes the market and the time period used. I don’t see how market situation plays into this.