Chapter 10: Bank on it - Financial Service firm valuation

[@TimHe-f1x]

Thank you professor!

[@c.stewart000]

Thanks for the amazing content! - 1 suggestion for future update would be to use a sans serif font for text and numbers. Anotehr, some of the dot points could be abreviated to be a little punchier.

[@gixours]

Big fan !

[@mattew446]

Thank you for your excellent content. I have a question about applying the DCF rationale to other finance companies. For example, if the company in question is an auto title lending company, and in my country, there’s no regulation requiring these firms to maintain a specific reserve level for loan provisions (LLR). However, auditors may require them to keep the LLR/NPL ratio above 100% or the LLR/total loan ratio above 10%. In this case, could the change in LLR be treated as an equivalent to Capex? For cash flow, I begin with operating profit before ECL expenses rather than net profit, as I consider ECL to be a non-cash item. I then deduct taxes and the calculated change in LLR (which is likely to be lower than ECL expenses for a given period, since firms typically write off loans periodically). Does this approach contain any errors in your view?

[@ElvinWu-y3j]

Hi Professor, can you do a video on how to value REITs? Thanks.

[@noel2615]

legend

[@Squash20]

Does warren Buffett compute all this?

[@MrAakashmaiya]

Plz do valuation of hdfc bank sir