Valuing Bank of Italy

SDA Bocconi School of Management

VALUING A FINANCIAL inception CASE TN

SDA BOCCONI
take OF MANAGEMENT
ASSISTANCE PROGRAM
TO GARYOUNIS UNIVERSITY

VALUING A FINANCIAL INSTITUTION:
BANK OF ITALY
command Notes
Antonio Salvi

Copyright SDA Bocconi
2
Confidential copy Use restricted to Garyounis University Faculty, deep down the scope of the Assistance Program

SDA Bocconi School of Management

VALUING A FINANCIAL INSTITUTION CASE TN

Valuing a Financial Institution: swan of Italy
doctrine Notes

Introduction
The objective of this case is to discuss the process of candor valuation of a very specific financial institution: the
primal Bank. The focus of the analysis is represented by the Bank of Italy.
Bank of Italy is an interesting valuation case because it can be utilize for describing the three most popular
methodologies (FCFE, P/BV on comparables and Economic Profit) commonly used for valuing the equity of a
bank, applied to a Central Bank. As far as we know, this is the first case study eer produced on Central Banks
valuation.
It is not easy to value the equity of a Central bank due to the specificities of the business and the institutional
eccentric they play in the macroeconomic environment.




The need to estimate the circus value of equity may be relevant in 2 circumstances:
?

Because it may be can facilitative for the Banks shareholders in order to estimate the fair value of their stake
and to adequately account for it in their financial statements.

?

It can represent the scratch line point of transactions that may concern the shares of the central bank

command plan
The case discussion should take one session if students already know the basics of valuation and the related
terminology. Otherwise, two/three sessions may be needed, especially if the Instructor requires the students to
make their calculation during clique hours.
The starting point should be a brief verbal description of the basic methodologies of corporate valuation. The analysis
of this aspect could take 15-20...If you want to write down a full essay, order it on our website: Ordercustompaper.com



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