Firm valuation phenomenon in emerging markets: An application on banking sector

In the conception of modern finance, the main objective of corporations have turn into profit maximization to value maximization. The corporations which aim at value maximization use firm valuation to measure created value by themselves. As a result, firm valuation that is a process to determine intrinsic value appears one of the most importants instruments of financial management.Firm value could be accounted with various methods. In this study, firm valuation and the methods which are used on firm valuation are conceptually examined and then the value of a commercial bank which operates in Turkish banking sector, is estimated by the method of Free Cash Flows to Equity (FCFE) which is a part of the Discounted Cash Flows.Key Words: Valuation, Firm Valuation, Bank Valuation, Discounted Cash Flows, Free Cash Flows To Equity.