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  "documentTitle": "A&M Valuation Insights – German vs. European Banks",
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  "notes": "Includes footnotes regarding data sources (S&P Capital IQ) and methodology (60TD Avg, FY+2 ROE).",
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      "text": "The implied cost of capital of European [German] banks declines to 13.2% [15.9%] and P/B ratios are at 0.90x [0.41x].",
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      "text": "Market capitalization in €bn",
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      "text": "Implied cost of equity vs. ROE FY+2",
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      "text": "P/B LTM",
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      "text": "Source: S&P Capital IQ; A&M Analysis. Note: (1) 60TD Avg. (2) Determined by equating market cap (60TD Avg) to consensus earnings forecasts and solving for the IRR. (3) Based on end-of-quarter spot prices and dividends; (4) STOXX Europe 600; (5) CDAX.",
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      "text": "Total market capitalization (60TD average) of European [German] banks came in at €1,065bn [€39bn] in Mar23... The recovery in market valuations pushed the implied cost of equity... The lower cost of capital and higher profitability forecast...",
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      "text": "P/B ratio: 0.90x",
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      "text": "With the surge in bank stocks prior to the collapse of SVB, the implied cost of capital declines and P/B ratios show slight signs of recovery.",
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      "text": "The implied cost of capital of European [German] banks declines to 13.2% [15.9%] and P/B ratios are at 0.90x [0.41x].",
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