Valuation of Banks & NBFIs

Can Anybody suggest a good book for Bank & Non-Bank Financial Institutions Valuation? How it’s done actually?

Good topic. For both these types using relative valuation (P/B ratio) seems to be pretty popular. I also use Residual Income Valuation which gave me good results. Just my two cents. I would also like to know much about valuing these types.

is thr any cash flow based approach…

Yes there is but nailing down the assumptions is virtually impossible without a decade of experience. For DCF techniques see wallstreetprep(dot)com, they have an industry specific bank valuation module in addition to the delux self study package. I just bought the delux. Haven’t started it yet myself, but looks worthwhile and I’ve heard good things. Granted one of the reviews was from daj224, but the other was from dinesh.

Hi Black Swan, can see the address, could you be kind enough to mail me to daze_naz@yahoo.com. Thnx

click on quote this message

The link was “wall street prep (dot) com” but with no spaces.

you can also read an initiation of coverage piece from an analyst covering those industries. they tend to be quite in depth with their valuation models, so this may help.

Hi Black Swam

I am interested in Commercial Bank Valuation methods , models , analysts reports, etc
How can I find or join a relevant forum on the above subject ?
Thanks
Max
EyS