Book Value Of Equity Bank
In finance and accounting equity is the value attributable to the owners of a business the book value of equity is calculated as the difference between assets types of assets common types of assets include current non current physical intangible operating and non operating.
Book value of equity bank. Equity s holdings of government securities shot up 26 percent from sh128 billion in 2017 to sh161 billion at the close of 2018 while its loan book grew by six percent from sh279 1 billion to. 118 billion is the same figure reported as total shareholders equity. 1 note that if the company has a minority.
The book value is the difference between total assets and liabilities. Similarly the provisioning policy for non. Book value per share is a widely used stock evaluation measure.
δ economic value δ value of assets δ value of deposits eve supports banks to appraise the influence of interest rate risk on net worth and equity of the bank because the value of assets and liabilities of a bank are throughtly linked with the interest rates. In theory if bank of america liquidated all of its assets and paid down its liabilities the bank would have roughly 267 billion left. Bank stocks tend to trade at prices.
The economic value of equity eve is a cash flow calculation that takes the present value of all asset cash flows and subtracts the present value of all liability cash flows. Correctly identifying and and liabilities types of liabilities there are three primary types of. Value of equity bank mbv comparables x book value of equity bank.
The book value per share is a company s book value for every common share outstanding. 5 as was the case with the p e ratio differences in profitable growth opportunities risk profile or business mix will aff ect the mbv ratio of a specific bank. The zacks equity research reports.
Equity group is currently trading at a price to a tangible book value of 1 4 times and a price to earnings of 6 5 times compared to an industry average of 1 2x and 6 3x respectively. That leads to a book valuation of 118 billion 301 billion 183 billion.