Valuation of banks in emerging markets: an exploratory study
- Authors: Sabilika, Keith
- Date: 2014
- Subjects: Banks and banking -- Valuation , Banks and banking -- Valuation -- Developing countries , Discounted cash flow , Capital assets pricing model , Capital -- Developing countries
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1200 , http://hdl.handle.net/10962/d1013057
- Description: Practitioners and academics in emerging markets are yet to agree on how best they can value companies in emerging markets. In contrast, academics and practitioners in developed markets seem to agree on mainstream valuation practices (Bruner, Eades, Harris and Haggins, 1998; Graham and Harvey, 2001). This study was therefore aimed at achieving such consensus with particular attention being paid to the emerging market banks. Emerging market banks are by no means small and are growing fast. Furthermore, these banks are currently involved in lots of cutting age economic activities such as mergers and acquisitions (M&A), joint ventures and strategic alliances which require sound valuation practices that are based on empirical evidence. The primary purpose of this research was to establish consensus of opinion among experts with regard to the valuation of banks in emerging markets. To achieve the purpose of this study the Delphi technique, which is a structured survey method that relies on a panel of experts to answer questionnaires in two or more Delphi rounds, was used to gather data and develop consensus among experts (Kalaian and Kasim, 2012). The main findings in this study pertain to aspects concerning the type of analysis considered by experts when analysing the performance of banks, how experts compare the discounted cash flow (DCF) approach to multiples valuation approach, the challenges encountered by experts when valuing banks in emerging markets, and how experts compute the cost of capital for banks in emerging markets. The main findings of this study can be summarised as follows: ∙ When analyzing the performance of banks, it is essential to conduct a bank-specific, industry and macroeconomic analysis; ∙ When estimating the future performance of banks, the time series analysis and an explicit forecast period of between 4-10 years may be used; ∙ When estimating the terminal value for banks in emerging markets, the perpetuity with growth is used; ∙ When computing the value for banks, the DCF valuation approach (equity DCF and DDM valuation models) are used as primary valuation methods and the relative valuation approach (P/E and P/BV ratio) are used as secondary valuation methods; ∙ The DCF valuation approach is considered as more accurate and popular when valuing banks in emerging markets; and ∙ When estimating the cost of equity, the capital asset pricing model (CAPM) is used.
- Full Text:
- Date Issued: 2014
- Authors: Sabilika, Keith
- Date: 2014
- Subjects: Banks and banking -- Valuation , Banks and banking -- Valuation -- Developing countries , Discounted cash flow , Capital assets pricing model , Capital -- Developing countries
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1200 , http://hdl.handle.net/10962/d1013057
- Description: Practitioners and academics in emerging markets are yet to agree on how best they can value companies in emerging markets. In contrast, academics and practitioners in developed markets seem to agree on mainstream valuation practices (Bruner, Eades, Harris and Haggins, 1998; Graham and Harvey, 2001). This study was therefore aimed at achieving such consensus with particular attention being paid to the emerging market banks. Emerging market banks are by no means small and are growing fast. Furthermore, these banks are currently involved in lots of cutting age economic activities such as mergers and acquisitions (M&A), joint ventures and strategic alliances which require sound valuation practices that are based on empirical evidence. The primary purpose of this research was to establish consensus of opinion among experts with regard to the valuation of banks in emerging markets. To achieve the purpose of this study the Delphi technique, which is a structured survey method that relies on a panel of experts to answer questionnaires in two or more Delphi rounds, was used to gather data and develop consensus among experts (Kalaian and Kasim, 2012). The main findings in this study pertain to aspects concerning the type of analysis considered by experts when analysing the performance of banks, how experts compare the discounted cash flow (DCF) approach to multiples valuation approach, the challenges encountered by experts when valuing banks in emerging markets, and how experts compute the cost of capital for banks in emerging markets. The main findings of this study can be summarised as follows: ∙ When analyzing the performance of banks, it is essential to conduct a bank-specific, industry and macroeconomic analysis; ∙ When estimating the future performance of banks, the time series analysis and an explicit forecast period of between 4-10 years may be used; ∙ When estimating the terminal value for banks in emerging markets, the perpetuity with growth is used; ∙ When computing the value for banks, the DCF valuation approach (equity DCF and DDM valuation models) are used as primary valuation methods and the relative valuation approach (P/E and P/BV ratio) are used as secondary valuation methods; ∙ The DCF valuation approach is considered as more accurate and popular when valuing banks in emerging markets; and ∙ When estimating the cost of equity, the capital asset pricing model (CAPM) is used.
- Full Text:
- Date Issued: 2014
Consumer perceptions of private label brands: an Eastern Cape university-aged analysis
- Authors: Mpofu, Bukhosi Dumoluhle
- Date: 2011
- Subjects: House brands -- South Africa -- Eastern Cape Young consumers -- South Africa -- Eastern Cape Consumer behavior -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1167 , http://hdl.handle.net/10962/d1002783
- Description: This research investigates the consumer perceptions of private label brands amongst the university aged consumers from selected Eastern Cape universities. The research also aimed to ascertain whether or not generation Y consumers are aware of the existence of private labels, whether price, quality, advertising, packaging, reference groups and demographic variables influenced generation Y purchasing behavior of private label brands. To achieve these objectives, the research made use of the simple random technique to gather the primary data via the use of an online structured questionnaire. The sample population selected where the students in the Eastern Cape Province Universities (Rhodes and Nelson Mandela Metropolitan Universities) who reside off-campus. The assumption was that students who reside off-campus are more aware of private labels as they carry out shopping more than those that reside on campus and generally would have more disposable income and the reason that two different universities have been chosen is to provide a broad base of student opinions, covering varying cultural and income backgrounds, thus allowing for unbiased, valuable research. After pre-tests were conducted the questionnaire was made available online to easy the distribution of the questionnaire and allow for a greater response rate. Descriptive and inferential statistics where used to analyze the results of the questionnaire. The results showed that consumers are generally aware of private label brands and have at least seen them being advertised. Furthermore, the results showed that consumers purchase groceries based on price, quality and convenience of location of the grocery stores .The results indicate that Generation Y consumers are indeed a significant part of the consumer population and that they represent a confident, self reliant, optimistic and positive generation and are verbally and visually more sophisticated, creating a whole new language through digital media and that Generation Y consumers are generally aware of the existence of private labels. The results also indicate that Generation Y consumers strongly agreed that they purchase groceries based on price and quality, meaning price and quality are very influential when purchasing groceries and that the packaging of, generally, all private label brands was not attractive hence a conclusion was made that packaging of private labeled products does not influence Generation Y’s purchasing behaviour of private labels.
- Full Text:
- Date Issued: 2011
- Authors: Mpofu, Bukhosi Dumoluhle
- Date: 2011
- Subjects: House brands -- South Africa -- Eastern Cape Young consumers -- South Africa -- Eastern Cape Consumer behavior -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1167 , http://hdl.handle.net/10962/d1002783
- Description: This research investigates the consumer perceptions of private label brands amongst the university aged consumers from selected Eastern Cape universities. The research also aimed to ascertain whether or not generation Y consumers are aware of the existence of private labels, whether price, quality, advertising, packaging, reference groups and demographic variables influenced generation Y purchasing behavior of private label brands. To achieve these objectives, the research made use of the simple random technique to gather the primary data via the use of an online structured questionnaire. The sample population selected where the students in the Eastern Cape Province Universities (Rhodes and Nelson Mandela Metropolitan Universities) who reside off-campus. The assumption was that students who reside off-campus are more aware of private labels as they carry out shopping more than those that reside on campus and generally would have more disposable income and the reason that two different universities have been chosen is to provide a broad base of student opinions, covering varying cultural and income backgrounds, thus allowing for unbiased, valuable research. After pre-tests were conducted the questionnaire was made available online to easy the distribution of the questionnaire and allow for a greater response rate. Descriptive and inferential statistics where used to analyze the results of the questionnaire. The results showed that consumers are generally aware of private label brands and have at least seen them being advertised. Furthermore, the results showed that consumers purchase groceries based on price, quality and convenience of location of the grocery stores .The results indicate that Generation Y consumers are indeed a significant part of the consumer population and that they represent a confident, self reliant, optimistic and positive generation and are verbally and visually more sophisticated, creating a whole new language through digital media and that Generation Y consumers are generally aware of the existence of private labels. The results also indicate that Generation Y consumers strongly agreed that they purchase groceries based on price and quality, meaning price and quality are very influential when purchasing groceries and that the packaging of, generally, all private label brands was not attractive hence a conclusion was made that packaging of private labeled products does not influence Generation Y’s purchasing behaviour of private labels.
- Full Text:
- Date Issued: 2011
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