FIG Team InterviewSubscribe
I have an interview with a FIG team at an emerging market PE group. The final round is a case study and entails valuing a financial institution (anything from microlender to insurance). I have combed for valuing private banks, and there is surprisingly little information (plenty for public companies, less for private), and so have turned here!
My question is this: within my allotted 90 mins of prep time, which valuation methods would you recommend?
1) A DDM seems to be the bread and butter of analysing a financial institution. However, a) it is very time consuming, and b) without dividends (which is expected for a Private EM bank), it will be complex and prone to error. Should I ignore the DDM?
2) If yes to the above, what valuation should I use instead? Naturally, multiple analysis will be used (P/E, P/B), but what should compliment this analysis? Asset Based, Excess Return etc?
Note that for this I am under time pressure and so time efficiency is important. Would greatly appreciate any help