Important factor in fundamental analysis for finance or banks stocks.

[rocky01]

hey friend i will be waiting..!!

hey friend you are looking on very long holiday or traveling.....:rofl:

waiting for you very valuable post for banking and finance co's valuation...
kindly do little hurry....

 

[rocky01]

hey friend need your help as soon as possible kindly post your bank and finance stocks fundamental valuation studies...........still waiting,,,,

 

[krishna23]

http://www.exinfm.com/training/pdfiles/Stocks.pdf
http://www.stern.nyu.edu/~adamodar/pdfiles/papers/returnmeasures.pdf

 

[rocky01]

yes krishna ,i am cfa i know all this studies but looks outdated,as it s based in dividend only but in regular time we cant value it...but thanks for helping ...try to find new studies as per time even i am in that way only...valuation for banks and finance co's we need to see may factores like NPA, and all read my all posts in this thread you will come to know what actully we need in valuation os these sector co's......

 

[manojsai]

loan yield ratio
breakeven yield
loan loss provision ratio
loan to deposit ratio
funding ratio
non performing loans to total loan ratio
earnings coverage ratio

 

[rocky01]

hey manojsai great can you post stranded ratio for all points you have suggested,and can you put example of any stock here after deriving its true value of it..????

 

[manojsai]

loan yield =

loan interest income+fees+lease income
------------------------------------------
average loans+lease

This ratio should be comparable with other banks...a high yield could indicate that the bank is lending to high risk customers or high risk ventures. a low yield may be indicative of a conservative bank. a sharp decline from one year may be due to certain loans written off.
google for explanation for other ratios.......

-------------------------------------------------------
The contents of this post were tested, ruthlessly, on small, cute, furry animals. Most of them were fatally harmed. Hence, if this post causes irritation, please discontinue reading immediately

 

[rocky01]

I am working on it and will post it here soon. In the meantime you can get more related info and a sample vauation that I did on fundamentalvaluation.blogspot.com

hey friend where are you i am still waiting waitnig and waiting only and you kept me in hope only.....dude when you are going to upload your valuation model for bank and finance co's stock ..??