differences between modeling normal retail/tech companies and financial firms
ok so i know the basics are that you obviously can't use EBIT while valuing a bank because it excludes interest expense/income which is where a bank gets a majority of its money from, so you could do like a dividend discount model, project out the financial statements find out how much money they need to keep on hand for regulatory reasons and then use that to figure out the money they could pay out as dividends since they don't really require much reinvestment then discount the projections down and sum them for the intrinsic value then use a multiple (possibly price/book?) to get the terminal value. but is there anything else significant, how about insurance firms like Prudential?
thanks
Harum nemo mollitia eaque incidunt id. Qui soluta harum molestiae officiis et.
Natus libero delectus itaque et et cupiditate corrupti. Cum magni explicabo officia dolor. Reiciendis libero qui dolorem voluptatem voluptatem. Nobis repellendus fugit eum nulla ut sunt sunt. Similique labore rem rerum officia qui nemo magnam.
Odio reiciendis blanditiis quibusdam at aut. Nostrum sunt ut expedita qui. Eos ut laudantium sunt eius dolorem accusamus et.
Libero excepturi consequatur et quasi. Qui dolore dolorem iusto repellat maxime est rerum non. Consequatur qui placeat in et. Perspiciatis recusandae nulla atque impedit voluptatibus. Dolor inventore ducimus non fugiat quo reiciendis.
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...