Method of Banks Valuation

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Eva Horvátová

Abstract

Since there is not a special common framework for valuation banks and it gives possibilities to create establishment, improvement and adaptation of various approaches to measuring the value of banks and financial institutions.


Most approaches banks valuation note the strong dependence of financial institutions value from market interest rates (Mishkin, F., Miller, WD, Copeland, T., Koller, T., Damodaran, A., and others). Each approache reflects greater or lesser degree of accuracy depending on the method of determining resources for owners, the discount factor, approaches to defining the rate of growth and methods of measurement.

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