Bank Valuation Excel Model Template

This Excel model contains a template for calculating the value of a bank.

by Mahender K. Punhani
Freelance Financial Analyst experienced in Excel Financial Modelling , Equity Research, Investment Banking and Start-ups.Follow 59

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Description
This model is a useful template for predicting and calculating the value of a given bank – in this example, the Bank of America in 2012. A bank valuation model can be used to measure the fundamental value of a bank’s equity.
The Excel template model includes 9 different functional tabs which enable the user to run their own evaluation and calculations.

These tabs are:

- Expected Return Using DDM
- Assumption & Working
- Beta Calculator
- Du Pont
- Du Pont Chart
- FCFE Valuation
- Constant Growth DDM
- Multi Stage DDM
- Leverage

The Expected Return tab includes a calculation using DDM, Dividend Discount Model. There are three similar methods with their given formulas.

The Assumption and Working tab also uses DDM, including factors such as Net Income to Common Shareholders, EPS (Earnings per Share), and DPS (Dividend per Share).

The Beta Calculator and the Du Pont tabs hold the data, with the Du Pont Chart containing a visual representation of the Income Statement and the Balance Sheet.

The FCFE Valuation tab, which stands for the Free Cash Flow to Equity, shows the value of each share, as well as the formula used to calculate the FCFE.

The Constant Growth DDM, Multi Stage DDM and Leverage tabs contain tables that concisely show the value of shares at different stages.

This Best Practice includes
1 Excel Spreadsheet