Banks are the type of businesses …which can show profits but can’t share with shareholders.
So the only way shareholders can make money ,is by selling the shares .In other words, for making money in the banking stocks,you need to find another guy to put your shares in his demat account.
Because ,banks can’t give the profits as dividends.
What I value is ,the ability of the business to share profits to the shareholders from the EPS.
Banks,steel ,infra,energy,airlines,telecom companies etc. can’t share significant portion of their EPS with you.Because they need money for surviving.Here profits are illusionary.
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