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

Musings on Markets

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.). at the end of 2022 to 0.94 in May 2022.

Banking 63
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Earnings and Cash Flows: A Primer on Free Cash Flow

Musings on Markets

With enterprise value multiples, you can scale enterprise value to FCFF, instead of using EBITDA or revenues as your scalar. As companies age, the proportion of companies that are money making increasing, as does the percent that has positive FCFE.