Chapter 10: Bank on it - Financial Service firm valuation

Description: Support session to accompany chapter 10 of the updated version of the Little Book of Valuation, published in March 2024.
Publisher: John Wiley
Amazon link: www.amazon.com...
My webpage for the book: pages.stern.ny...
In this session, I look at financial service companies and why they need different treatment from their non-financial counterparts. Starting with the recognition that debt is more raw material than a source of capital to financial service firms, I also look at why estimating cash flows has always been a challenge, leading many to stay with the dividend discount model. Using Citigroup in 2023, shortly after the SVB fiasco, as an example, I contrast a dividend discount model value for the bank with a model where I estimate free cash flows to equity.
Citigroup valuation: pages.stern.ny...

[@user-gt9vl3ns2b]

Thank you professor!

[@c.stewart000]

Thanks for the amazing content! - 1 suggestion for future update would be to use a sans serif font for text and numbers. Anotehr, some of the dot points could be abreviated to be a little punchier.

[@gixours]

Big fan !

[@user-mp4ce5qt1s]

Hi Professor, can you do a video on how to value REITs? Thanks.

[@noel2615]

legend

[@Squash20]

Does warren Buffett compute all this?

[@MrAakashmaiya]

Plz do valuation of hdfc bank sir