A study on the determination of the bank valuation with the method of free cash flow to equity and an İMKB application

The aim of this study is to determine the valuation of the banks in the light of the free cash flow to the equity, which is one of the cash flow methods. In the study, Chapter I deals with valuation concept and methods, and Chapter II deals with the banking system.In Chapter III, banking valuation theory and the studies in the literature review are illustrated. Thus, in the study, the theory of free cash flow to equity (FCFE) is selected for the valuation of the banks, and all of the stages in the sample of banking application are illustrated in details.In Chapter IV, which is the application section of the study, the valuation of the seven banks having operations at IMKB has been determined in similar way. The values detected have been compared to the market prices of the banks, and it is found that the power of market price of the detected values is 0,72. Finally, in the study, the financial rates of the three months of the banks that are announced to the public and the market prices are tested by regression pooled analysis, and it is seen that the market prices of the rates are announced as 0,82.Finally, as a result of the study, it is stated that the founding of the discounted cash flow of the values of the banks by making use of the method of free cash flow to equity is effective in announcing the market prices.