About this estimate
This calculator estimates what a bank or insurer could be worth today as its book equity plus the capitalised value of earning a return on that equity above its cost of equity. It is a general research and education tool. It is not personal financial advice, not a forecast of the share price, and it does not take account of your objectives or circumstances.
The result is highly sensitive to its inputs, especially the normalised return on equity and the gap between the cost of equity and the terminal growth rate. When that gap is narrow a small change moves it substantially. Treat the output as one estimate within a wide range, not a precise figure.
The estimate runs on a set of assumptions: a normalised return on equity, a cost of equity, and a terminal growth rate. Each one is shown in the assumptions panel below, and you can change any of them to test your own scenario.
The default assumptions are a reasonable starting point because they are derived from the company's own reported financials over a through-cycle window together with market-standard inputs, with the cost of equity built from the current government-bond (risk-free) rate, the company's beta, and a published equity-risk premium, and they are refreshed each data cycle. They are defaults for a neutral calculation, not our view of the right values for you.
This calculator is a research and education tool. It is not intended to be relied on for the purpose of making a decision about any financial product, and you should consider obtaining advice from a licensed financial adviser before making any financial decision.
