Good bank or bad bank? Aswath Damodaran decodes valuation model to derive intrinsic value
Valuation master Aswath Damodaran outlined the parameters and methodology for valuing banks, in a blog post which aimed to educate investors on the intrinsic value and worth of banks. Damodaran indicated that for banks, one can only value equity and therefore use price-to-earnings or price-to-book as parameters for valuing banks, with the future free cash flows to equity used as a measure of intrinsic value.
