As, promised I am sharing the spreadsheet, where I have tried to value the different PSU banks with an asset base of over 20,000 crore(with some exceptions). This spreadsheet is the first draft. There is still some work that needs to be done on this. Once I complete the valuation of the PSU banks I will turn over to the smaller private banks(since they are undervalued and have the potential to become the next HDFC).
Please note the following before you open the sheet:
1. As mentioned before this is not a fool proof method, as I am not assigning weights to the ranks.
2. I have not included the June, 2010 results, as I was more inclined on valuing the bank on their performance for the whole financial year.
3. I have not included the growth of the banks for the last few years. Therefore even though the sheet might show Indian Bank to be the winner, there is a very high probability that a PNB has been growing more aggressively.
Please find the link below
Relative Valuation - PSU Banks.
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