The main question the book addresses is whether it is possible to determine the value of banks in
general and Islamic banks in particular using generally available valuation models. But does this still hold in the current uncertain times? Questions that will be addressed include the suitability of price as the right benchmark, what is the impact of market psychology and how accurate are future cash flow estimations. Over the years, large numbers of academics and practitioners have looked into the valuation of companies and the different techniques that can be applied. Discounted cash flow, residual income and economic value added (EVA) are only a few of the techniques that have been researched extensively. Typically, these cover either a specific industry, or a large diverse set of listed companies, but without exception exclude financial institutions.
