Considering they have cheap finance from savings account. Float from insurance, Money multiplier, loans to business.
I think the main value are from these 4.
so What's a good way to valuate a bank such as dbs
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(13-09-2012, 10:15 AM)Baldric Wrote: [ -> ]Considering they have cheap finance from savings account. Float from insurance, Money multiplier, loans to business.
I think the main value are from these 4.
so What's a good way to valuate a bank such as dbs
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THE std for valuing banks is P/B. According to pat dorsey of formerly from morningstar, you should never ever pay >3x P/B. after saying that there is only 1 outstanding exception and that is Public bank in malaysia,never goes below 3x and trade up as much as 4x. all others are far below 3x and the 3 sgp banks trades between 1-2x P/B.