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Consequently, you can only value the equity in a bank, and by extension, the only pricing multiples you can use to price banks are equitymultiples (PE, Price to Book etc.).
The ratio is either related to the Equity Value or ratios related to the Enterprise Value. . An example of an equitymultiple: Price / Earnings. An example of an enterprise multiple: EV/Sales, EV/EBITDA, EV/EBIT and practically all non-financial multiples (e.g. EV/ARR, EV/barrel, EV/MW, EV/Click, etc).
The ratio is either related to the Equity Value or ratios related to the Enterprise Value. . An example of an equitymultiple: Price / Earnings. An example of an enterprise multiple: EV/Sales, EV/EBITDA, EV/EBIT and practically all non-financial multiples (e.g. EV/ARR, EV/barrel, EV/MW, EV/Click, etc).
Again, the question of which variants (FCFE or FCFF) can be used depends on whether you are using an equity pricing multiple (where the market cap or share price is in the numerator) or an enterprise value multiple (where it is the market value of operating assets in the numerator): With equitymultiples, you can scale the market value of equity (or (..)
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