The Valuation of Other Financial Companies
Although the intermediation activity carried out by banks and insurers covers the largest chunk of the finance industry, other niche finance companies have emerged over time and do coexist with the traditional players. Such finance companies are either specialized subsidiaries of financial institutions or independent organizations. Mostly, these companies can be valued using the methods we have already presented in Chapter 5 and 9, but some aspects deserve further consideration. Finally, funds nowadays represent the leading force of financial markets at large, and we will touch briefly on some valuation issues related to them.
10.1 THE VALUATION OF FINANCE COMPANIES
Innovation, regulation, and country-specific consumer behavior gave rise to a wide array of companies offering specialized financial services and products. Among them and without this list being exhaustive: