Hey everyone, wondering if anyone can provide a little color on this one. Couldn't find too much guidance on this subject online.
Why would you use a dividend discount model or residual income model when valuing a bank or financial institution?
How do banks use debt "differently"? I can understand not using an EBIT/EBITDA multiple when interest is a huge part of the business, but why couldn't you do a DCF but adjust the FCF numbers to include interest income?