Valuing Banks in Uncertain Times

The main question this book addresses is whether it is possible to determine the value of banks in general and Islamic banks in particular using generally available valuation models. But, does this still hold in the current uncertain times? The book - now in paperback - examines the suitability of price as the right benchmark, the impact of market psychology, and the accuracy of future cash flow estimations. Over the years, numerous academics and practitioners have looked into the valuation of companies and the different techniques that can be applied. Discounted cash flow, residual income, and economic value added (EVA) are only a few of the techniques that have been researched extensively. Typically, these cover either a specific industry, or a large diverse set of listed companies, but, without exception, exclude financial institutions. The reasons for this exclusion are simply that the characteristics are different from other industries and the fact that financial institutions, spe See more