Overview
The fee based business of most banks dont suffer from the same challenges as the asset management side. That is, the standard techniques of firm valuation are usually applicable.
- Discounted Cash Flow - if the cash flows ( revenues and expenses) from the fee based business can be identified, then discounted cash flow models can be applied
- Relative Valuation - if other firms that provide the same set of services as the fee based business can be identified, then the techniques of relative valuation are applicable.