Bank Valuation Multiples

This problem practices how to think about bank valuation using equity-based trading multiples rather than the enterprise value framework used for many non-financial companies. In FIG interviews, candidates are expected to understand why measures like book value, earnings, and tangible book value are especially relevant for banks, since balance sheet structure, leverage, and regulatory capital matter more than in most industries. Interviewers ask this kind of question to check whether you know the standard comps metrics for financial institutions and can explain what each multiple tells investors about profitability, capital strength, and asset quality.