Public Bank Valuation

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Authors
Markuson, Lucas
Advisor
Julie Mull
Mel McFetridge
Joan Stottlemyer
Editor
Date of Issue
2012-04-01
Subject Keywords
Publisher
Citation
Series/Report No.
item.page.identifier
Title
Public Bank Valuation
Other Titles
Type
thesis
Description
Abstract
Through delving into the efficient market hypothesis, it is evident that the practice of corporate valuation is practicable in determining the fundamental intrinsic value of an investment. Focusing on the analysis of a publicly traded banking institution, it is clear that both Relative valuation and Discounted Cash Flow valuation models are the most applicable. These valuation techniques are first discussed with regard to the public banking sector as a whole and then applied to a specific publicly traded bank holding company: Sterling Financial Corporation. The use of valuation models provides investors with the ability to make informed investment decisions grounded in the fundamentals of the company. In addition, the practice of valuation allows investors to potentially earn excess returns and maximize their return on investment. Due to the role of banks and financial institutions in the financial crisis that began in late-2007, an examination of these entities is both timely and relevant.
Sponsors
Degree Awarded
Bachelor's
Semester
Spring
Department
Business, Accounting & Economics