Valuation Methodology

The preparation of financial institution valuations typically involves the application of a variety of valuation methodologies in order to provide a good estimate of fair market value. The final valuation estimate should be based on an understanding of each valuation methodology employed, and how each methodology applies to the specific circumstances of the bank being valued.

Young & Associates, Inc. employs a variety of methodologies when determining the value for our client banks:

• Alternative Investment Approach - Proprietary Model
• Value - Market Approach
• Value - Discounted Cash Flow and Continuing Value

After deriving valuation ranges based upon the various methodologies, we will reconcile the various valuation approaches to determine our estimate of fair market value for our banking client. In addition, we provide a 10-year profit projection, historical information on market pricing, and other information to further support our valuation estimate.

For more information on how Young & Associates can assist your bank with stock valuation, give us a call at 1.800.525.9775 or click here to send an E-mail. Return to Top