Estimate and compare a bank's intrinsic value across up to 5 periods using Price-to-Book (P/B), Price-to-Tangible Book Value (P/TBV), Price-to-Earnings (P/E), and Dividend Discount Model methods
Use the following suggested ranges for multiples, based on typical bank valuation metrics. Adjust based on peer comparisons or industry data from sources like Bloomberg or Yahoo Finance.
| Multiple | Suggested Range | Notes |
|---|---|---|
| P/B Multiple | 0.5–2.0 | Lower for banks with high risk or low ROE; higher for stable, high-quality banks. |
| P/TBV Multiple | 0.7–2.0 | Reflects tangible assets; typically higher than P/B for banks with significant intangibles. |
| P/E Multiple | 8–15 | Higher for banks with strong growth prospects; lower for mature or cyclical banks. |
| Required Return | 6–12% | Based on CAPM (e.g., Risk-Free Rate + Beta * Market Risk Premium). Adjust for bank-specific risk. |
| Dividend Growth Rate | -5–10% | Can be negative during downturns; positive during growth periods. |
| EPS Growth Rate | -10–20% | Can be negative during recessions; positive during expansion. |
Enter parameters for up to 5 periods (e.g., Q1, Y1) to estimate and compare a bank's intrinsic value.
This calculator uses four methods to estimate a bank's intrinsic value per share: Price-to-Book (P/B), Price-to-Tangible Book Value (P/TBV), Price-to-Earnings (P/E), and Dividend Discount Model (DDM).
Compares market price to book value or tangible book value. Useful for assessing asset-heavy banks.
Evaluates price relative to earnings. Reflects profitability and growth potential.
Estimates value based on future dividends discounted to present value. Ideal for dividend-paying banks.
Combines all methods for a balanced estimate. Compare to market price for insights.
Choose 1 to 5 periods (e.g., quarters or years) and the currency for inputs.
Input total shares outstanding (e.g., 174M for Access Bank Ghana).
Provide Book Value, Tangible Book Value, EPS, Dividend, and multiples (P/B, P/TBV, P/E, Required Return, Dividend Growth, EPS Growth) for each period.
Click “Calculate” to see intrinsic value estimates and a chart comparing methods across periods.
To perform an accurate bank valuation, gather the following data from reliable sources:
Total equity divided by shares outstanding. Find in balance sheet (Yahoo Finance, gse.com.gh).
(Total Equity - Intangibles) / Shares. Check balance sheet for intangibles like goodwill.
Net income divided by shares outstanding. Found in income statement.
Total dividends paid divided by shares. Check cash flow statement or company announcements.
Compare to peer banks on Yahoo Finance, Bloomberg, or Damodaran (nyu.edu).
Use CAPM: Risk-Free Rate (e.g., 91-day T-Bill ~10% in Ghana) + Beta * Market Risk Premium (~16.35% for Ghana).
Estimate dividend and EPS growth based on historical data or analyst forecasts (Yahoo Finance “Analysis” tab).
Find in company profiles on gse.com.gh or Yahoo Finance “Statistics.”
Example: For Access Bank Ghana, use Book Value = GHS 10.50, Tangible Book Value = GHS 9.80, EPS = GHS 1.25, Dividend = GHS 0.50, P/B = 1.2, P/TBV = 1.5, P/E = 10, Required Return = 8%, Dividend Growth = 5%, EPS Growth = 7%, Shares = 174M.