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The drop over the past week in banking valuations has lowered Spain's main stock market index to levels not seen since 2003.
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The difference between the banks' valuations is probably influenced by negotiating tactics.
The third point is that bank valuations reflect an awful lot of bad news.
Thus the board is rejecting what may be a common method of auditing bank valuations.
Bank valuations are low; several banks might need to raise several times more than their current market value.
Most European banks are trading at well below their book value, in some cases below 50%, while US bank valuations have recovered.
The number of transactions made above bank valuations has also returned to the two-year average after a monthslong slump, she said.
Agricultural Bank will compete for investors' money with publicly traded rivals that plan to raise a combined $32 billion in stock and bond sales even with bank valuations near record low levels.
The past two buying opportunities for banks occurred when they traded at 40-45% of the market multiple, says Mr Cassidy; at the start of April they traded at 87% of the average rating.More exotically, James Montier, a strategist at Société Générale, says that in the 1990-92 downturn, British bank valuations bottomed when market values were around 3-4% of deposits.
As this will increase net margins and reduce outstanding shares for the banks going forward, this implies a small upside to these banks' valuations.
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