All great points, mate.
One question: Why is ROE comparable and ROA not? ROA as I understand simply means how much returns are you generating every year on your assets, akin to ROCE in non financial cos.
Also, my two cents: Lower P/B in the case of financial cos may not necessarily suggest a lower valuation, rather it points to poor quality asset management because of which market has not given the right multiple to the financial cos. All well managed banks have P/Bs > 2x, where as PSU banks are hovering at P/B < 1
Cheers!
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