Amazing video.. read a lot of articles on banking valuation but couldn't understand why dcf won't work for banks.. this video finally provides all the answers.. great work!!

WOW! You explained everything in this video in such an easy format. Can't believe this has got only 7000views! But I wholeheartedly thank you for putting out this video!

This is phenomenal. Thanks @FinShiksha.

Amazing work. Very comprehensive.

Thanks for the video ! Great one ! Quick Summary of some very interesting stuffs (to me) mentioned in case useful to others: - The Dividend Discount Model (DDM) may not be suitable due to the absence of a steady-state dividend in emerging economies - Earnings cannot be used as cash flow to equity holders because it would imply constant book equity, hindering future bank growth - which is not the reality. So earnings can't be used for any kind of DCFs on banking valuation. - Price to earnings ratio can be distorted by provisions, with banks making more provisions appearing safer but potentially screening as not a buy due to lower EPS and higher PE ratio. So P/E can't be used, leaving P/B - the key ratio relevant for banking industry. - Banks with higher book value indicate higher financial assets over liabilities, setting the stage for future growth. - Higher book equity implies potential to increase asset size and potential for future growth.

Very informative and a very high quality content. Thank you.

This video is absolutely gold for the students of valuation like me who are trying to climb the mountain of bank valuation. Very comprehensive video thank you finShiksha for this beautiful beautiful video

Please make this type of video for every sector. Very interesting and amazin explanation...

Informative video, thank you for it!

Superbly Articulated !

Amazing

Excellent talk.

How do we quantify Stock Dividend while following the DDM model? Banks do not always pay cash dividend, sometimes its just stock, sometimes its a mixture of both.

Superb 🙂 thnk u

Thank you sir for upload .yes bank in 2020:)

very informative video.

Superb clarity and explanation!!

Does it cover valuation of bank liability

I got my anwser today why dcf not working with banks

Why its not calculated in percentage terms to do the comparison ?

Best thing i found

thnx and plz expln with examples

Why have you stopped posting videos?

Yes Bank is certainly shocking

Before Yes Bank saga 😝😝😝😝 This shows that on paper valuation is not everything

Yes bank...?????

Yes bank 😂😂😂