Bank Valuation – Dividend Discount and Residual Income Model

If you glanced through my analysis of PBBANK just now, you will notice that I incorporated 2 new valuation models: Dividend Discount (DDM) and Residual Income (RIM).

Both models in my excel are fully tailored for banks, so they are very different from the common DDM and RIM.

Under normal circumstances, fair value derived by using RIM is much lower than DDM. Thus, I will consider RIM’s fair values as the bare minimum price.

Dividend Discount Model Residual Income Model
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If you want to learn more about these models, please visit and


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