Unlike most stocks, bank stocks can't be reliably valued on a price-to-earnings (P/E). So how do you value a bank?
In the video below from The Motley Fool's banking and finance-focused show "Where the Money Is," Fool analysts Matt Koppenheffer and Max Macaluso discuss the best metric to use value banks. They also touch on two other metrics that investors can look to when evaluating bank stocks.
- What contributes to the above-average returns that US Bancorp earns?
- How long will the turnaround at Citigroup take?
- How should investors think about the non-performing loan numbers at Bank of America?
Big banking's little $20.8 trillion secret
There's a brand-new company that's revolutionizing banking, and is poised to kill the hated traditional brick-and-mortar banks. That's bad for them, but great for investors. And amazingly, despite its rapid growth, this company is still flying under the radar of Wall Street. To learn about about this company, click here to access our new special free report.
Matt Koppenheffer owns shares of Bank of America and Citigroup. Max Macaluso, Ph.D. owns shares of Bank of America. The Motley Fool recommends Bank of America. The Motley Fool owns shares of Bank of America and Citigroup. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.