Book is one of Australia’s largest regional banks, with about 200 bank branches in Australia. Unlike most large banks, many Bok branches run their ‘owner managers’. That means, they are effectively small business owners. Most of the Bok’s debts are made of mortgage.
The price of the BOQ shares
Culture matters
Long -term investors want to invest in great companies and hold them for 5, 10 or 20 years, we believe that a good workplace and staff culture can maintain high quality personnel and can lead to long -term financial success of a company.
Asi’s investors can get in a way like a company Bank of Queensland Limited Or Bandigo and Adelaide Bank Limited (ASX: BEN) to use HR/Jobs website like seek. The Sik’s website contains data related to the culture of companies, including things like employees. For example, according to recent data we draw on Book, the company’s overall workplace culture rating was 2.6/5 Beneath Sector average 3.1.
Watch that (net) margin
ASX Bank shares such as BOQ need reserves and good profit margins to make their business profitable. Meaning, a bank receives money from term deposit holders and wholesale loans investors and lends this amount to homeowners, businesses and investors. The difference between the bank Payment Researchers and what is Makes from The mortgage (for example) is a pure interest margin or NIM. Remember: When it comes to half, the margin is wider.
If you are planning to predict a bank’s profit like Book or Westpack Banking Corporation (ASX: WBC), knowing how much money the bank pays and gives borrowers per dollar. That is why NIM BOQ is the most important step. In ASX’s major bank shares, we calculated the average NIM by 1.78 %, while Bank of Queensland Limited’s lending margin was 1.56 %, highlighting it and returning an average of less than a loan compared to our peers. This may be for many reasons, which are worth investigating.
The reason for analyst NIM’s close study is that Bank of Queensland Limited earned 93 % of its total income (equivalent to income) by lending last year.
Return to the shareholder Equity (ROE)
Returning to the shareholder equity, also known as ‘ROE’, helps you compare a bank’s profit comparison to its total shareholder equity, as shown on his balance sheet. Instrument Cry Better. In the latest whole year, Bank of Queensland Limited’s ROE was 4.7 %, which means that the bank’s shareholder created 70 4.70 at annual profit for every $ 100 of the Equity. This sector was less than 9.35 %.
Book’s Backup Bank Capital
For Australian banks, CET1 ratio (alias ‘Common Equity Tire One’) is important. The CET1 represents the bank’s capital buffer, which can be avoided by financial elimination – basically, it is the proportion of total assets that are ‘liquid’ or readily available. According to our number, Bank of Queensland Limited last year was 10.7 %. This sector was less than average.
BOQ’s profitable assessment – some tricks for bank stock
https://www.youtube.com/watch?v=36mud-1abb4
A David Discount Model or DDM is a highly efficient way to make ASX bank shares calculated. We have to take a DDM’s last year’s profit and then apply the risk rating. The total profit last year was $ 0.34. Let’s suppose that the BOQ profit payment is at a permanent rate every year in the future, between 2 % and 4 % somewhere. We will use multiple risk rates (between 6 % and 11 %) and then use the average price. The calculation we use is: Shares value = full year’s profit / (risk rate-rate growth rate).
| Rate | ||||
| 2.00 % | 3.00 % | 4.00 % | ||
|
Risk rate |
6.00 % | $ 8.75 | .6 11.67 | . 17.50 |
| 7.00 % | $ 7.00 | $ 8.75 | .6 11.67 | |
| 8.00 % | 83 5.83 | $ 7.00 | $ 8.75 | |
| 9.00 % | $ 5.00 | 83 5.83 | $ 7.00 | |
| 10.00 % | 38 4.38 | $ 5.00 | 83 5.83 | |
| 11.00 % | 89 3.89 | 38 4.38 | $ 5.00 | |
According to this sharp and simple DDM model, the average price of Boki shares is $ 7.19. However, using $ 0.35 ‘adjust’ dividend payment (expected future profit), which is a preferential step because it uses prediction profits, costs $ 7.40. The diagnosis compares the current Shares of BOQ to $ 7.27. Since the company’s profits are fully clarified, we can make more adjustments and make a diagnosis based on ‘gross’ profit payment (this is the value of profit, including Franking Credit). Using gross profit payments, ‘fair price’ projection becomes 5.57.
This means that the price of the BOQ shares can be known for using the DDM model. It is important to consider all the risks and ideas presented here, including the benefit of the railing dividend and the good effects of Franking Credit.
Consider e -mailing our free investment report on your free investment report on analysis and diagnosis (Continue reading). It should be one of the many steps when deciding to invest. Consider reading at least two or three -year -old Bank of Queens Land Land Limited Annual Reports and then look for good investors and reviews that do not agree with your point of view – a good way to find out if you are making a positive decision based on strict analysis and consider alternative feedback. Finally, before going further with the shares of Book or Ben, I recommend that you get a copy of our free investment report.
