Valuation of Financial Services Firms - A Case study on the Valuation of a Swiss Bank with and without the Government Guarantee

Abstract

In the case of the target company, such an assessment was last prepared in June 2018. As the global economy has been hit by COVID-19 in the meantime, an up-to-date assessment is all the more relevant. Furthermore, its legal form and the continuation of its government guarantee is repeatedly discussed. In this context, the target company, who is also the commissioning party, has assigned the authors with the valuation of the shareholder equity and the state guarantee. Additionally, it should also be investigated whether the current compensation of the state guarantee is justified.