Valuing Banks: A New Corporate Finance Approach
Federico Beltrame, "Valuing Banks: A New Corporate Finance Approach"
English | ISBN: 1137561416 | 2016 | 242 pages | PDF | 5 MB
English | ISBN: 1137561416 | 2016 | 242 pages | PDF | 5 MB
This book aims to overcome the limitations the variations in bank-specifics impose by providing a bank-specific valuation theoretical framework and a new asset-side model. The book includes also a constructive comparison of equity and asset side methods. The authors present a novel framework entitled, the “Asset Mark-down Model”. This method incorporates an Adjusted Present Value model, which allows practitioners to identify the main value creation sources of a particular bank: from asset-based cash flow and the mark-down on deposits, to tax benefits on bearing liabilities. Through the implementation of this framework, the authors offer a more accurate and more specific approach to valuing banks.