Abstract
This section shows how we do integrated analysis and valuation using the ROIC methodology. We will use a bank’s financial statements to calculate Invested Capital and ROIC, analysing those results along the way. We will then link that analysis to valuation, showing how the ROIC valuation model can be used to discover what the market expectations of a bank’s future sustainable profitability are. All this can then inform our own views on a bank’s valuation.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
Author information
Authors and Affiliations
Copyright information
© 2014 Sandy Chen
About this chapter
Cite this chapter
Chen, S. (2014). ROIC for Banks Methodology. In: Integrated Bank Analysis and Valuation. Global Financial Markets. Palgrave Macmillan, London. https://doi.org/10.1057/9781137307460_3
Download citation
DOI: https://doi.org/10.1057/9781137307460_3
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-45554-6
Online ISBN: 978-1-137-30746-0
eBook Packages: Palgrave Economics & Finance CollectionEconomics and Finance (R0)