A Comparison between Valuation Metrics in a Real Case

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

Chapter 7 in Valuing Banks, 2016, pp 175-225 from Palgrave Macmillan

Abstract: Abstract We run a simulation of a real case of a bank valuation with the application of the AMM and its derived market multiples, and we compare this with the traditional metrics currently used in banking. Results show that the AMM allows a better understanding of where the value of a bank lies and appoints greater value to the liabilities side than the traditional valuation approach. The asset-side model we present could represent a useful method with which to compare the equity-side approach currently used in bank valuation.

Keywords: Cash Flow; Operating Profit; Payout Ratio; Market Risk Premium; Asset Growth (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_7

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DOI: 10.1057/978-1-137-56142-8_7

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