Monday, January 21, 2013

Banking Sector Financial Analysis


The next financial analysis will focus on the U.S. banking sector.    I was wondering what to focus on next and I decided on banks because of this article.

It says that Warren Buffett is bullish and banks are cheap.  Well, we'll see for ourselves.

This financial analysis will go a lot faster than the last one, as I don't need go into the mechanics of each step.  I also thought I'd cut to the chase by taking a look at the theoretical prices using ohlson's clean surplus theory right out of the gate.

However, the first step is to build the portfolio of U.S. bank stocks in Verdasis financial analysis software.

I'm going to look at:
Goldman Sachs
State Street
JP Morgan
Citigroup
CIBC (USA)
First Republic
Toronto-Dominion Bank (USA)
Westpac Banking Corporation
Wells-Fargo
PNC Financial Services
Morgan Stanley
Royal Bank (USA)
Bank of America
Capital One
Credit Suisse Group
Royal Bank of Scotland
ICICI Bank
Bank of Montreal (USA)
LLoyd's Banking Group
Bank of Nova Scotia (USA)

The market cap of these companies is over $20 Billion, with the exception of First Republic (~$5B).

On Wednesday we'll look at theoretical price.

Thanks for reading.

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