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Investor Questions Podcast #9: How Do You Calculate a Bank's Intrinsic Value?

By GeoffGannon on Thu, 2010-03-18 15:58
(via www.investorquestionspodcast.com)

Geoff walks you through an intrinsic value estimate for Valley National (VLY). He focuses on deposits and the cost to gather them. Geoff says Valley is worth about $15 a share.

KellieB on Tue, 2010-03-30 05:22
Title: intrinsic value

Bank intrinsic value estimates on what weight? Is FDIC has to do with the calculation of the bank intrinsic value? Since banking and finance seems to have been a whirling cauldron of chaos over the last few years, it creates the need for the FDIC to step in, or at least, that's what is supposed. The FDIC, or Federal Deposit Insurance Corporation, is an separate agency of the government, like the Federal Reserve, which performs a role in consumer protection. They don't cover all financial aspects like pay day loans, but they have a huge hand in banking, and insuring deposits up to a certain amount, in order to prevent a catastrophic crash in case of a bank run.