tag:blogger.com,1999:blog-63315433295919899772011-11-27T15:47:11.425-08:00Financial Institute & banksWarrenhttp://www.blogger.com/profile/14404552934160343396noreply@blogger.comBlogger31100tag:blogger.com,1999:blog-6331543329591989977.post-81695819105720140382010-05-25T13:46:00.001-07:002010-05-25T13:46:57.730-07:00Corporate valuationRelative metrics : Price/Equity Price/Book Value<br /><br />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.<br /><br />Dividend Discount Model : Earnings-per-share<br /><br />Dividends-per-share<br /><br />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<br /><br />FCFF-Debt+Cash=FCFE<br /><br />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)<br /><br />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]<div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/6331543329591989977-8169581910572014038?l=newscouch.blogspot.com' alt='' /></div>Warrenhttp://www.blogger.com/profile/14404552934160343396noreply@blogger.com0tag:blogger.com,1999:blog-6331543329591989977.post-60974417747207356232010-05-25T13:44:00.000-07:002010-05-25T13:46:33.408-07:00FunctionFinancial 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.<div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/6331543329591989977-6097441774720735623?l=newscouch.blogspot.com' alt='' /></div>Warrenhttp://www.blogger.com/profile/14404552934160343396noreply@blogger.com0tag:blogger.com,1999:blog-6331543329591989977.post-27811427695225354042010-05-25T13:10:00.001-07:002010-05-25T13:10:38.900-07:00<ol><li class="g"><h3 class="r"><a href="http://www.thesitewizard.com/archive/makemoney.shtml" class="l" onmousedown="return clk(this.href,'','','res','7','','0CD8QFjAG')">How to Make Money From <em>Your Website</em> through Affiliate Programs <b>...</b></a></h3><div class="s">Aug 29, 2008 <b>...</b> While it is true that if <em>your site</em> is well-known, you may get companies contacting you to offer to <em>advertise</em> on <em>your site</em>, <b>...</b><br /><span class="f"><cite>www.the<b>site</b>wizard.com/archive/makemoney.shtml</cite> - <span class="gl"><a href="http://www.google.com/search?hl=en&client=firefox-a&hs=uqf&rls=org.mozilla:en-US:official&q=related:www.thesitewizard.com/archive/makemoney.shtml+Advertising+Your+Website&tbo=p&sa=X&ei=NCb8S8m1JpGmM8DtwKcB&ved=0CEEQHzAG">Similar</a></span></span></div><!--n--><!--m--></li><li class="g"><h3 class="r"><a href="http://www.communityadvertising.org/" class="l" onmousedown="return clk(this.href,'','','res','8','','0CEIQFjAH')">Community <em>Advertising</em> | FREE <em>Advertising</em> For <em>Your Website</em>!</a></h3><div class="s"><em>Advertising</em> does not have to cost you a small fortune. 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