This investment advisory service is supported by some of the most adequate valuation
frameworks discussed throughout the literature review, whose purpose is to break down the
best quantitative assessment of the financial institutions’ equity and come up with a final price
target. Thereby, an insightful analysis is provided, in which the source of research is a listed
financial institution in PSI20 index – Banco Espírito Santo, the largest capitalised bank in
Portugal.
At the end of this dissertation, all the valuation metrics under analysis and the rational
will be closely compared to Caixa Banco de Investimento’s banking report published on
December 13 2011, an up-to-date sector report of the Portuguese banks challenges
