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

Musings on Markets

In this post, I will begin by looking at how to value banks and follow up with an examination of investor views of banking have changed, by looking at pricing, before examining divergences in how banks are priced in the market today.

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

Musings on Markets

An alternate way of describing free cash flow to the firm is that it measures the cash flows that would have been available for equity investors, if there were no debt in the firm, and it is for this reason that some call it an unlevered cash flow.