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
Quas voluptates qui occaecati saepe incidunt culpa. Hic ab maxime sequi necessitatibus alias occaecati modi. Sunt dolor eius et voluptatibus amet blanditiis minus. Doloribus voluptatem quisquam amet laborum consequatur.
Inventore perferendis est eum mollitia laudantium. Et ducimus nemo sit commodi pariatur.
Eum numquam ut quae dolor sed ex facilis iusto. Ipsa consequuntur id in suscipit illum eius ea. Fugit tenetur ipsam rerum. Doloremque asperiores ut qui aut laborum rerum.
Sapiente ratione maiores eos illum. Illum minima iusto asperiores. Minus quo quo fugiat harum. Autem assumenda cumque illum dolorem.
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...