Banks’ Asset-Side Multiples: Profitability, Growth, Leverage and Deposits Effect

Federico Beltrame and Daniele Previtali
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Federico Beltrame: University of Udine
Daniele Previtali: Luiss Guido Carli University

Chapter 6 in Valuing Banks, 2016, pp 155-174 from Palgrave Macmillan

Abstract: Abstract The focus in this chapter is on banks’ market multiples. In particular, we first show the influence of firm growth on market multiples. Moreover, according to the theoretical framework we presented in Chap. 3, we propose alternative options for asset-side multiples that can be used in the relative valuation of banks. In addition, we implement a new approach that mixes the use of asset-side multiples with a separate evaluation of deposits and tax-shields.

Keywords: Cash Flow; Total Asset; Implied Cost; Target Firm; Operating Profit (search for similar items in EconPapers)
Date: 2016
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Persistent link: https://EconPapers.repec.org/RePEc:pal:pmschp:978-1-137-56142-8_6

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DOI: 10.1057/978-1-137-56142-8_6

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