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Good (Bad) Banks and Good (Bad) Investments: At the right price.

Musings on Markets

The other was that the bank regulatory framework operated effectively , preventing banks from overreaching on risk or being under capitalized. Price to Book Ratio: Choice and Drivers There is no sector where price to book ratios get used more than in banking and financial services, for two reasons. at the end of 2022 to 0.94

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Data Update 5 for 2022: The Bottom Line!

Musings on Markets

That said, about 31% of the net profits of all publicly traded firms listed globally in 2021 were generated by financial service firms; that percent is lower in the US and higher in emerging markets. To make comparisons, profits are scaled to common metrics, with revenues and book value of investment being the most common scalar.

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Invisible, yet Invaluable: Valuing Intangibles in the Birkenstock IPO!

Musings on Markets

While I have seen claims that intangibles now account for sixty, seventy or even ninety percent of value, I take these contentions with a grain of salt, since the definition of "intangible" is elastic, and some stretch it to breaking point, and the measures of value used are questionable.