Friday, November 15, 2013
You need to tread carefully when using a price earnings ratio (P/E) and dividend yield to gauge how attractive bank stocks might be. That’s because bad debts or one-off items can compromise the sustainability of bank dividends.
So it’s important to understand that banks require some peculiar evaluation criteria when it comes to assessing their intrinsic value and business performance. If you do want to call on the price earnings ratio to help value and compare one bank stock against another, then it must be used alongside some bank-specific financial ratios.
Whilst some valuation principles are equally applicable to all companies, there are a number of complications specific to banks such as determining leverage – due to being both borrower and lender - regulatory impact, capital expenditure and interest margins.
The key financial ratios you need to look at when evaluating banks and estimating their intrinsic value are net interest margin, cost to income ratio, bad debts, return on assets, Tier 1 capital ratio and the price to book ratio.
Thursday, February 28, 2013
Skaffold Global is expanding. On Tuesday 5 March we’re adding around 250 stocks listed across exchanges in Europe, London and Switzerland. From Tuesday Skaffold Global will include every ASX-listed stock, plus some of the largest stocks listed on the NYSE, Nasdaq, Hong Kong, Canada, Singapore, European, London and Switzerland stock exchanges.
Wednesday, February 01, 2012
For investors, the two main places to put your money are shares and property. With both these markets well off their highs, 2012 is shaping as a good year to invest in either - or both. With this in mind, Money magazine enlisted experts to come up with a top 50 list for both shares and property.
Skaffold.com is an exciting new stock-selection application that rates all ASX-listed companies from A1 to C The Skaffold Score benchmark rating allows investors to focus on the best companies, avoiding those with doubtful fundamentals that may be wealth destroying. Skaffold.com has identified 50 value-for-money stocks for you to consider.