Post by roy on May 20, 2012 10:59:05 GMT -5
Here is a spread of price/book of various banks by WSJ. The book value is not tangible book but book value including intangibles.
USB 1.86
WFC 1.29
M&T 1.24
BB&T 1.21
Fifth 0.98
JPM 0.77
GS 0.72
C 0.46
MS 0.45
BAC 0.37
The book has to be adjusted to tangible book before doing valuations. Also, one has to consider the earning power of the entity before buying the stock or options.
With BAC going at $7, it is below the price at which Buffett got his warrants. It is possible for this to go down and in a normalized environment; it seems safe to say that the bank can earn 20-30 billion a year.
I expect the dividends to come back in 2013 after BAC meets the basel requirements and the lawsuits should fade to the background as time progresses.
USB 1.86
WFC 1.29
M&T 1.24
BB&T 1.21
Fifth 0.98
JPM 0.77
GS 0.72
C 0.46
MS 0.45
BAC 0.37
The book has to be adjusted to tangible book before doing valuations. Also, one has to consider the earning power of the entity before buying the stock or options.
With BAC going at $7, it is below the price at which Buffett got his warrants. It is possible for this to go down and in a normalized environment; it seems safe to say that the bank can earn 20-30 billion a year.
I expect the dividends to come back in 2013 after BAC meets the basel requirements and the lawsuits should fade to the background as time progresses.