A Quick and Dirty Way to Value Bank Stocks

From a valuation perspective, bank stocks are some of the most intimidating securities in the stock market. There are a seemingly endless number of variables that could be included in any particular analysis, from those dealing with interest rates, to housing values, to economic growth, and everything in between. There's nevertheless a quick and dirty way to value bank stocks that comes in extremely handy in a pinch. In the video below, Motley Fool contributor John Maxfield discusses the shortcut, as well as its strengths and weaknesses.

Do you own shares of Bank of America or are thinking of buying them?
Bank of America's stock doubled in 2012. Is there more yet to come? With significant challenges still ahead, it's critical to have a solid understanding of this megabank before adding it to your portfolio. In The Motley Fool's premium research report on B of A, analysts Anand Chokkavelu, CFA, and Matt Koppenheffer, Financials bureau chief, lift the veil on the bank's operations, including detailing three reasons to buy and three reasons to sell. Click here now to claim your copy.

 

The article A Quick and Dirty Way to Value Bank Stocks originally appeared on Fool.com.

John Maxfield owns shares of Bank of America. The Motley Fool recommends Wells Fargo. The Motley Fool owns shares of Bank of America, Citigroup, JPMorgan Chase, and Wells Fargo. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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