Im currently researching bank-stresstests for my bachelor thesis and therefore studied the valuation of big banks at the stock markets. Im quite surprised by what i found when looking at the price to book ratio of european banks in comparison to US banks as pretty much all european banks are traded at a very low price to book ratio, even below 1. How does this make sense? The market-cap of banks like Deutsche Bank are as low as 1/3 of the book value (some italian banks have an even worse ration). Does it mean that they have not correctly updated their balance sheets?
Submitted November 17, 2018 at 07:16AM by ayrancola https://ift.tt/2OP8qYk
