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Bank Valuation: Understanding Key Ratios and Metrics

Tom Spencer

A higher ratio of fee income implies less traditional credit risk and less balance sheet usage (therefore higher ROE) but also implies greater market risk related to securities portfolios and potentially higher revenue volatility related to volatility in capital markets. Valuation Metrics Price-to-earnings (P/E) Price-to-book (P/B) 2.1

Metrics 88
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Fed Balance Sheet vs. Stock Market; Will QE Cause Inflation?

MishTalk

Balanced Budget Ammendment Sign the Balanced Budget Petition. Recommended Books. Fed Balance Sheet vs. Stock Market; Will QE Cause Inflation? Fed Balance Sheet vs. Stock Market. The Fed would probably show an insolvent balance sheet today if its holdings were actually marked-to-market.

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Mergers & Acquisitions: Valuation

Tom Spencer

LAST post, I highlighted the importance of strategy when considering the viability of a potential acquisition; however, before a final decision can be made, a consultant needs to estimate the value of the target company. Valuation of discounted expected future cash flows.

Cash Flow 109
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What is a Healthy Company?

Markovitz Consulting

Often people will point out that many of these companies have run into trouble since he wrote the book. James and Deborah Fallows, in their book Our Towns , point to the numerous small cities where companies collaborate with local governments and non-profits to improve education. What makes for a healthy company?

Company 124
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Greek default in all but name - Tom Spencer consulting blog

Tom Spencer

Over the last few decades, countless risky financial products were sold to investors using harmless sounding terms like “credit default swap”, “mortgage backed security”, “special purpose vehicle” and “off-balance sheet financing”. Get Email Updates (It’s Free). -- Australia’s premier consulting blog. Definitions.

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Would a Bund by any other name smell as sweet?

Tom Spencer

Thirdly, European banks are currently focused on building their balance sheets not on lending. Dexia has around $700 billion on its balance sheet, but like many banks it requires access to short term funding. Get Email Updates (It’s Free). -- Australia’s premier consulting blog. Graduate Consulting Group.

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Mish's Global Economic Trend Analysis: Reader Question: Does the.

MishTalk

Balanced Budget Ammendment Sign the Balanced Budget Petition. Recommended Books. Reader Question: Does the Fed Balance Sheet Properly Reflect QE Announcements? The feds balance sheet doesnt reflect it. So if QE is $85B a month, where is it and why doesnt it show up in the Feds balance sheet.".