DDM and NAV valuation model for banks illustrated with a financial building background.

Banking, Financial Model, Financial Services

5-year Financial Projections, Accounts Payable, Accounts Receivable, Bad Debt, Business Valuation, Cash Flow Analysis, Cash Flow Projections, Cost Projections, DCF Model, Debt Schedule, Debt Security, Debt Service Coverage, Discount Rate, Dividends, Excel, Financial Debt, Financial Feasibility, Financial Model, Financial Modeling, Financial Planning, Financial Projections, Financial Reporting, Financial Statements, Financing, Forecast, Forecasting, Inventory, Investment Multiple, Investor Cash Flows, Investors, IRR (Internal Rate of Return), KPIs (Key Performance Indicators), Loans, Net Yield, NPV (Net Present Value), Private Equity Waterfall Distribution Models, Profitability Analysis, Revenue Projections, Startup Financial Models, Terminal Value, Three Statement Model | Three Financial Statements, Valuation, Venture Capital, WACC (Weighted Average Cost of Capital)

Banking Model with 3 Statements – Dividend Discount (DDM) and Net Asset Value (NAV) based Valuation

This is a very detailed and user-friendly Dividend Discount (DDM) and Net Asset Value (NAV) based valuation model for the banking sector. The template is included with the three financial statements i.e. Income Statement, Balance Sheet, and Cash Flow Statement, and detailed calculation around valuation and financial analysis.

The model captures 3 years of Historical + 5 Years of the forecast period. Valuation is based on the 5-year forecast using the 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 input of a huge amount of financial data 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 runs 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
– Capitalization Ratios
– Liquidity Ratios
– Productivity Ratios

This is a very detailed and user-friendly model that can be used by the user to perform DDM and NAV.

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