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Industry Monitor: Banks – Modern Value Investor


The Industry Monitor helps investors follow and compare stocks in specific industries. Valuation metrics are provided along with essential growth and quality metrics to identify the best investment opportunities. The excel spreadsheets are downloadable and updated weekly. 

The Bank Industry Monitor provides insights and analysis on 15 leading large-cap US banks, as well as 15 handpicked micro, small or mid-cap banks in Modern Value Investor’s Bank Watchlist. 

Each stock in the downloadable excel spreadsheet includes the current share price, market capitalization, and dividend yield. The rest of the metrics are divided into Valuation, Growth, and Quality. Valuation metrics are meaningless unless they are analyzed in combination with the growth and quality metrics. We have picked the essential growth and quality metrics for banks.

Valuation

  • P/E – price to trailing-twelve-months earnings
  • P/B – price to tangible book value
  • P/L – price to loans
  • P/D – price to deposits

Growth

  • EPS growth – 10-year compounded earnings per share growth
  • TBV growth – 10-year compounded tangible book value per share growth
  • Loan Growth – 10-year compounded loan growth
  • Deposit Growth – 10-year compounded deposit growth

Quality

  • ROE – 5-year average return on tangible equity
  • Overhead Ratio – 5-year average overhead ratio (noninterest expense / total tangible assets)
  • Leverage – tangible assets over tangible equity (latest)
  • Loan to Deposits – the total amount of loans by the total amount of deposits (latest)
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