Description

Dividend discount valuation is a cash flow method of valuing financial institutions. This playlist focuses on valuing a bank.

Learning Objectives

---

1. Calculate maximum dividends payable using a bank model.
2. Recognize that equity value is based on the present value of future maximum dividends.
3. Calculate equity value using a dividend discount model.
4. Apply sense checks to a terminal value calculation.
5. Apply cross checks to the overall valuation using PE and Price to book value multiples.