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Why Bank Valuation Starts—and Often Ends—with Dividends
BankingCashflow

Why Bank Valuation Starts—and Often Ends—with Dividends

by Michael LanaNovember 14, 2025January 1, 2026

Question:For banks, is dividends the only practical way to estimate or value future cash flows? Answer:For bank equity, yes – in theory the value is the present value of all future distributions to shareholders –…

Why Growing Free Cash Flow Directly Can Mislead Your DCF
Cashflow

Why Growing Free Cash Flow Directly Can Mislead Your DCF

by Michael LanaNovember 14, 2025January 1, 2026

Question:I used to build FCF DCFs by taking CFO minus total capex, then running a two-stage model. For the high-growth period, I’d take the average of (last year FCF − this year FCF), use that…

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