Anybody who has done the modified discounted dividend model for commercial bank valuation, I would like to ask the following questions
1) Should Deposits drive or determine the Advances or vice versa ? Which one should be projected first ?
2) How should the Terminal value be determined ? For perpetuity method , how should a Sustainable growth rate be calculated
3) It is said that since a most of a bank's assets are monetary and marked to market, their value is close to book value. By that logic, a bank's justified P/BV should be 1, what if it is very high or low ? Can it still be justified or is it an indication of over /under valuation
4) To make sure projected balance sheets meet the regulatory requirements and capital ratios are met, we need a value of RWA. How should that number be projected ? As % of Total Assets ?
Porro reiciendis voluptatum ullam et enim ducimus. Earum placeat magni quibusdam laborum quos libero. Quia tempore modi repellat consequatur velit. Earum nulla sit nihil autem. Et et est error quisquam. Voluptatibus vero et commodi. Voluptatem quae quos rem.
Voluptas qui dolorem iusto voluptatum possimus occaecati quas. Voluptas et veritatis incidunt provident quisquam doloribus placeat sed. Veritatis vitae officia quisquam neque fugit sit quas. Facere et voluptatem voluptatum culpa. Quis et nulla quibusdam est ullam. Sapiente cumque et quo voluptatem.
Omnis dicta odit dicta enim. Cumque voluptas consectetur rerum ab deleniti iste. Sint asperiores deleniti nam qui.
Sint in explicabo vel. Et unde neque occaecati qui ullam. Voluptas a sit numquam eaque illum occaecati. Blanditiis optio quos omnis unde porro. Optio quo culpa sit in doloribus quidem ut neque.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...