This is a very detailed and user friend Dividend Discount (DDM) and Net Asset value (NAV) based valuation model for banking sector. with the three financials statements i.e. Income Statement, Balance Sheet and Cash Flow Statement and detailed calculation around valuation and financials analysis.
The model captures 3 years of Historical + 5 Years of forecast period. Valuation is based on the 5 year forecast using Dividend Discount Model (DDM) and Net Asset Value (NAV) approach.
DDM is a method for valuing the price of a stock by using projected dividends and discounting them back to present value. The concept is that if the value obtained from the DDM is higher than the current market value of the stock, then the stock is undervalued, and vice-versa.
Assumptions tab allows for the inputting of a huge amount of financial date for your business. These inputs cover a wide range of financial data:
1. Revenue Assumption (Effective Yield on Gross Advances, Yield on Investments, Gross Advances & more)
2. Costs Assumptions (Interest on Deposits, Average Interest bearing Liabilities, Employee Cost & more)
3. Income tax
4. Capital Expenditure and Depreciation/Amortization (Tangle and In Tangible Assets)
5. Long Term and Short Term Debt
6. Share Capital (Issue of New shares, Reserve Accounts)
7. Dividend Calculation (Interim and Final Dividend along with Tax impact)
The model run comprehensive calculations based on the inputs provided by the user generate very accurate outputs which include:
1. Income Statement: Includes Historical and Forecasted Profit and Loss statement
2. Balance Sheet: Includes Historical and Forecasted Balance sheet
3. Cash Flow Statement: Includes Historical and Forecasted cash flows
4. Valuation: DDM and NAV based valuation
5. Valuation Ratio: A very detailed financial analysis covering:
- Price based valuation ratios
- Per Share Data like EPS, DPS, FCFF per share & more
- Profitability ratios
- Return ratios
- Dupont Analysis
- Growth Matrix
- Asset Quality
- Capitalisation Ratios
- Liquidity Ratios
- Productivity Ratios
This is a very detailed and user friendly model which can be used by user to perform DDM and NAV.