Bank Trading Models

Overview

Trading models for bank stocks are valuation based types of analysis that use only publicly available information. This differs from the valuation models used internally by bank managers, due to the unavailabilty of information private to the bank in question.

Basic Analytics

Relative Value

Relative value models do not make a final judgement on the value of bank, rather, they try to make determinations whether the bank in question is worth more or less than its peers. (see relative value for information about relative valuation in general)