The Valuation of Financial Companies
eBook - PDF

The Valuation of Financial Companies

Tools and Techniques to Measure the Value of Banks, Insurance Companies and Other Financial Institutions

  1. English
  2. PDF
  3. Available on iOS & Android
eBook - PDF

The Valuation of Financial Companies

Tools and Techniques to Measure the Value of Banks, Insurance Companies and Other Financial Institutions

About this book

This book presents the main valuation approaches that can be used to value financial institutions. By sketching 1) the different business models of banks (both commercial and investment banks) and insurance companies (life, property and casualty and reinsurance); 2) the structure and peculiarities of financial institutions' reporting and financial statements; and 3) the main features of regulatory capital frameworks for banking and insurance (ie Basel III, Solvency II), the book addresses why such elements make the valuation of financial institutions different from the valuation of non-financial companies.

The book then features the valuation models that can be used to determine the value of banks and insurance companies including the Discounted Cash Flow, Dividend Discount Model, and Residual Income Model (with the appropriate estimation techniques for the cost of capital and cash flow in financial industries). The main techniques to perform the relative valuation of financial institutions are then presented: along the traditional multiples (P/E, P/BV, P/TBV, P/NAV), the multiples based on industry-specific value drivers are discussed (for example, P/Pre Provision Profit, P/Deposits, P/Premiums, P/Number of branches). Further valuation tools such as the "Value Maps" or the "Warranted Equity Method" will be explained and discussed. The closing section of the book will briefly focus on the valuation of specific financial companies/vehicles such as closed-end funds, private equity funds, leasing companies, etc.

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Yes, you can access The Valuation of Financial Companies by Mario Massari,Gianfranco Gianfrate,Laura Zanetti in PDF and/or ePUB format, as well as other popular books in Business & Valuation. We have over one million books available in our catalogue for you to explore.

Information

Publisher
Wiley
Year
2014
Print ISBN
9781118617335
eBook ISBN
9781118617250
Edition
1
Topic
Business
Subtopic
Valuation
Index
Business
14
The
Valuation
of
Financial
Companies
Table
1.6
The
largest
Chinese
and
Japanese
banks
Institution
name
Total
assets
($
M)
Industrial
&
Commercial
Bank
of
China
(ICBC)
2
822
334
Mitsubishi
UFJ
Financial
Group
2
382
911
China
Construction
Bank
Corporation
2
248
062
Agricultural
Bank
of
China
2
130
857
Japan
Post
Bank
2
104
219
Bank
of
China
2
040
160
Mizuho
Financial
Group
1
820
416
Sumitomo
Mitsui
Financial
Group
1
518
478
Source:
data
from
original
financial
statements.
Exchange
rates
as
of
March
29,
2013.
of
US
and
European
banks.
In
Asia,
for
example,
along
with
the
leading
Japanese
financial
institutions,
four
Chinese
banks
have
assets
worth
more
than
$2
trillion
(Table
1.6).
However,
the
new
emerging
banking
groups
have
so
far
adopted
the
same
business
models
as
Western
banks.
Therefore,
the
valuation
frameworks
presented
in
the
next
chapters
easily
apply
to
banks
outside
the
US
and
Europe.

Table of contents

  1. The Valuation of Financial Companies: Tools and Techniques to Value Banks, Insurance Companies, and Other Financial Institutions
  2. Contents
  3. Preface
  4. Acknowledgments
  5. 1 Bank Business Models
  6. 2 Financial Statements Analysis for Banks
  7. 3 The Regulatory Capital for Banks
  8. 4 Assessing and Preparing the Business Plan for a Bank
  9. 5 Bank Valuation
  10. 6 Insurance Business Models and Financial Statements
  11. 7 Regulatory Capital for Insurance Companies
  12. 8 Assessing the Business Plan for an Insurance Company
  13. 9 Insurance Companies Valuation
  14. 10 The Valuation of Other Financial Companies
  15. References
  16. Index