Discounted Cash Flow Calculation for KASE:BOP using Excess Returns Model Model
The calculations below outline how an intrinsic value for Bank of Punjab is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.
In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.
The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.
The current share price of
Bank of Punjab
is above its future cash flow value.
Often investors are willing to pay a
for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
Bank of Punjab's
is considered below, and whether this is a fair price.
Price based on past earnings
Bank of Punjab's earnings available for a low price, and how does
this compare to other companies in the same industry?
Unable to determine if Bank of Punjab is high growth as no earnings estimate data is available.
Bank of Punjab's revenue is expected to grow by 13.2% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
Bank of Punjab's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
Bank of Punjab
has a total score of
3/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.
TENURE AS CEO
Mr. Ijaz ur Rehman Qureshi has been a Director at Bank of Punjab since March 2020 and its Acting Chief Executive Officer since 2020. He has been the Acting President at Bank of Punjab since March 5, 2020 and served as its Senior Executive Vice President and Global Head of Operations until 2020. Mr. Qureshi served as the Chief Risk Officer at The Bank of Punjab and served as its Group Head of Audit & RAR. He has been a Non-Executive Director of Punjab Modaraba Services (Pvt.) Ltd., Management Company of First Punjab Modaraba since March 29, 2016. He has 23 years of extensive banking experience and prior to his assignment as Group Head Operations, he served on the positions of GH Audit & RAR and Chief Risk Officer of the Bank of Punjab. He has vast experience of revamping and establishing new functions / departments. He is Chairman Insurance Committee. Prior to joining Bank of Punjab in March 2009, he was employed with MCB Bank in Audit & RAR Group and held various managerial positions, lastly he was heading Operation Audit of the bank. He played key role in transformation and implementation of Risk Based Audit approach and played critical role in smooth transition from traditional auditing practices. He is a fellow member of the Institute of Chartered Accountants of Pakistan, and is a Certified Internal Auditor from IIA, USA.
Insufficient data for Ijaz Ur to compare compensation growth.
Insufficient data for Ijaz Ur to establish whether their remuneration is reasonable compared to companies of similar size in .
Ijaz Ur Qureshi
Chief Financial Officer & Group Head Human Resources Division
Chief Information Officer
Head of Compliance & Internal Control
Head of Legal
Head of Corporate Communication & QA
Head of Corporate Banking-Central
Head of Islamic Banking
Group Head of SAM & Legal
Chief Risk Officer
Board of Directors Tenure
Average tenure of the
Bank of Punjab
board of directors in years:
The average tenure for the Bank of Punjab board of directors is less than 3 years, this suggests a new board.
Board of Directors
Ijaz Ur Qureshi
Chairman of Shariah Board
Muhammad Abdullah Sumbal
Member of Shariah Board
Resident Member Shariah Board
Who owns this company?
Recent Insider Trading
No 3 month open market individual insider trading information.
The Bank of Punjab provides commercial banking and related services. The company operates through Corporate Banking, Retail Banking, Retail Finance Lending, Treasury, Islamic, and Others segments. It offers retail banking products comprising current, savings, and term deposit accounts; retail finance products, including car leases, caravan fleet financing, and house finance schemes, as well as finance for the purchase of solar power; bancassurance and agriculture finance products; and products for small and medium enterprises. It also provides project finance; debt syndications and consortium financing; corporate finance; long term/demand finance; working capital finance; letter of credit, contracts, and export collection services; FE loans, and pre and post shipment export financing; import financing; bills discounting; letter of guarantees; and cash management services, etc. to commercial and corporate clients. In addition, the company offers real estate, export, transport, trade, and dairy finance; investment banking; and treasury services, including fixed income, equity, foreign exchange, commodities, credit, funding, own position securities, lending and repos, and brokerage debt services. Further, it provides agriculture finance products comprising production loan, tractor lease, finance leasing, cold storage finance facility, and green house finance products; livestock development schemes; Islamic banking services; clearing/collection, locker, and trade; and online and mobile banking services, as well as debit cards. It operates through a network of 624 branches, including 17 sub-branches and 100 Islamic banking branches, and 557 ATMs in Pakistan and Azad Jammu and Kashmir. The Bank of Punjab was founded in 1989 and is headquartered in Lahore, Pakistan.
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