Discover Financial Services Valuation

Undetailed Valuation: Financial companies are mostly undervalued according to their FCF valuations, because of their risks involved. Comparable companies analysis should be more important for the valuation, valuation should be estimated as bank valuations.According to CCA, Company is fairvalued moslty, but has better p/e ratios than compared companies.

valuation is attached with excel file.

on this valuation I did not cover all details due to lack of time because of my studies: Instead of using reinvestments and roe, I used growth years of past years for future growth rate assumption. I used exit multiplies method for finding terminal value, and I assumed that amortization and reinvestment have the constant growth rate as the average growth rates of past years, in more comprehensive valuations, percentages of amortizations and reinvestments regarding sales should be used.