What does Evercore ISI mean when they say we valued something at 11.5x FCF but the company is a life insurer or bank? How do they determine FCF for a bank?
For context, I want to go down the MM route but getting used to this style of modelling. I work in financials and don't really see FCF (use earnings approach or other asset leverage * net investment income style approach). This would really help my learning if someone can help me backsolve it. It's extremely prevalent in Evercore ISI life insurance, P&C, banks.
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Hey - thanks for your response and offering to help. For context, I am an A1 in PE looking to switch to MMHF and have been learning to model. Have access to research reports but not models.
A few good companies that seem to be valued using the FCF approach are Jackson, Corebridge. I think the entire life insurance sector covered by Tom Gallagher uses this approach.
JXN
https://ibb.co/C8MPwpp
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