DCF VALUATION ON A BANK

1. Conduct a discounted cash flow valuation. 

2. The analysis should explain each variable used in the analysis, why you accepted the given input, or how and why you changed a variable. 

3. The analysis should also examine the relevant cash flows, compare the final valuation to the stock’s current price and explain any differences.  (Note: Remember to adjust the equity risk premium to between 5% and 6%; also, adjust the growth rate to an appropriate long-term growth rate.)

More information to follow.