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A Quick and Dirty Way to Value Bank Stocks

From a valuation perspective, bank stocks are some of the most intimidating securities in the stock market. There are a seemingly endless number of variables that could be included in any particular analysis, from those dealing with interest rates, to housing values, to economic growth, and everything in between. There's nevertheless a quick and dirty way to value bank stocks that comes in extremely handy in a pinch. In the video below, Motley Fool contributor John Maxfield discusses the shortcut, as well as its strengths and weaknesses.

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  • Report this Comment On March 31, 2013, at 8:59 AM, johnvs22 wrote:

    Take it from a retired banker. This is too quick and too dirty. Besides never depend on a regulator to value a bank stock. Their evaluation rubric is not the same as an investors. Remember too the regulators were caught with their pants around their ankles in 2008 like everyone else.

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