Corporate valuation

Relative metrics : Price/Equity Price/Book Value

Use Equity Multiples (as opposed to Enterprise Multiples). To consider how valuing a Financial Institution's balance sheet is different from a non-Financial firm, consider how an industrial firm wields capital machinery (asset) and the loans (liabilities) it used to finance that asset. The line is blurred in Financial Institutions, which must hold deposit accounts (liabilities) to fuel the issuance of loans (assets). The same accounts are considered loans as they are held in ownership not of the bank, but of the individual client.

Dividend Discount Model : Earnings-per-share

Dividends-per-share

Discounted Cash Flow (DCF) Model : You'll need the FCFE (Free Cash Flow for Equity), which is the amount of money that is returned to shareholders. Calculate an FCFF (Free Cash Flow to the Firm): EBIT (1-tax rate) -Capital Expenditures+ (Depreciation & Amortization) - (Net increase in working capital)= FCFF

FCFF-Debt+Cash=FCFE

Use the Capital Asset Pricing Model, not the Weighted Average Cost of Capital (for the same reasons one uses Equity Multiples in relative valuation) to determine the cost of equity (the return required by shareholders to make the decision to invest in a financial institutions)

Excess Return Model : A model where valuation is expressed as the sum of capital invested currently in the firm and the present value of dollar excess returns that the firm expects to make in the future.[1]

Function

Financial institutions provide service as intermediaries of the capital and debt markets. They are responsible for transferring funds from investors to companies in need of those funds. Financial institutions facilitate the flow of money through the economy. To do so, savings are pooled to mitigate the risk brought to provide funds for loans. Such is the primary means for depository institutions to develop revenue. Should the yield curve become inverse, firms in this arena will offer additional fee-generating services including securities underwriting, and prime brokerage.

1. How to Make Money From Your Website through Affiliate Programs ...

   Aug 29, 2008 ... While it is true that if your site is well-known, you may get companies contacting you to offer to advertise on your site, ...
   www.thesitewizard.com/archive/makemoney.shtml - Similar

2. Community Advertising | FREE Advertising For Your Website!

   Advertising does not have to cost you a small fortune. Community Advertising will show you how advertising can be affordable!
   www.communityadvertising.org/ - Cached - Similar

3. Advertise Your Website - Cost Effective, Affordable Internet Web ...

   How to Advertise Your Website - Affordable, Professional Internet Web Page Advertising, Promotion & Website Marketing Services.
   www.munising.com/advertise.html - Cached - Similar

4. Online Business Guide: 20 Free Ways to Advertise Your Web Site

   Value saving tips to promote your website for free.
   www.verio.com › Resource Center › Online Business Guides - Cached - Similar

5. A Free Online Advertising Network | Free Blog Advertising ...

   Increase your traffic. We have thousands of sites on our network all ready and waiting to freely advertise your website or product. ...
   www.adgridwork.com/ - Cached - Similar

6. AdBrite - The Internet's Ad Marketplace

   Find out how we can help you generate more revenue from your ad space. Customize ads to match your site; Approve and reject ads for your site ...
   www.adbrite.com/mb/landing_both.php - Cached - Similar