Musings on Markets

MAY 7, 2023

Consequently, you can only value the equity in a bank, and by extension, the only pricing multiples you can use to price banks are equity multiples (PE, Price to Book etc.). Note the differences between the bank FCFE and bank dividend discount models.

Banking 63

Banking Price to Book Dividends Book Value 63

Valutico

DECEMBER 15, 2022

The ratio is either related to the Equity Value or ratios related to the Enterprise Value. . An example of an equity multiple: Price / Earnings. An example of an enterprise multiple: EV/Sales, EV/EBITDA, EV/EBIT and practically all non-financial multiples (e.g. EV/ARR, EV/barrel, EV/MW, EV/Click, etc).

Precedent Transaction Analysis 52

Precedent Transaction Analysis EBITDA Comparable Company Analysis Enterprise Value 52

Valutico

DECEMBER 15, 2022

The ratio is either related to the Equity Value or ratios related to the Enterprise Value. . An example of an equity multiple: Price / Earnings. An example of an enterprise multiple: EV/Sales, EV/EBITDA, EV/EBIT and practically all non-financial multiples (e.g. EV/ARR, EV/barrel, EV/MW, EV/Click, etc).

Precedent Transaction Analysis 52

Precedent Transaction Analysis EBITDA Comparable Company Analysis Enterprise Value 52

Musings on Markets

OCTOBER 25, 2022

An intuitive reading of the FCFE is that it is cash available to be returned to equity investors, either in the form of dividends or as cash buybacks. It is the rare firm that follows a residual cash policy, returning its FCFE every year as dividends and/or buybacks.

Dividends 92

Dividends EBITDA Equity Start-ups 92