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.
In the process, Matt and Max look at US Bancorp (USB -0.20%), Citigroup (C 2.82%), and Bank of America (BAC 1.70%), cluing viewers in on:
- 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?
