In a company’s valuation, Price Earning(P/E) multiples are applied to earnings based on the maintainable profits before tax less minority interest(gross). In determining the PE multiples, it is equally important to ensure that the following factors should also be taken into consideration:-

net tangible asset value;
quality of management;
nature of products/services;
track record;
growth prospects;
prospective dividend yield;
prospective tax expense […]

To assess the Asset Quality of Banks/Financial Institutions, the following ratios need to be analyzed:

Loans Loss
Non-performing loans to total loans
Loan Recoveries ratio
Loan Loss Reserves
EARNINGS COVERAGE
Capital Adequacy

Capital Formation Ratio
Capital to Assets Growth
Gross Capital to Average Assets plus Reserves

Ratio
Purpose
Formula

Earnings Coverage Ratio

Measures the level of earnings and the charge to income […]

To assess the Asset Quality, the following ratios need to be analyzed:

Loans Loss
Non-performing loans to total loans
Loan Recoveries ratio
LOAN LOSS RESERVES
Earnings coverage
Capital Adequacy

Capital Formation Ratio
Capital to Assets Growth
Gross Capital to Average Assets plus Reserves

ADEQUACY OF LOAN LOSS RESERVE […]

One interesting liquidity ratio is the defensive interval which reflects theoretically how long the company can survive or defend itself in terms of its available cash plus cash equivalent ( most liquid cash) versus its daily cash operating requirement.

Ratio

Purpose
Formula

Defensive ratio

Used to indicate the number of days a company could theoretically remain […]

To assess the Asset Quality of Banks/Financial Institutions, the following ratios need to be analyzed:

Loans Loss
NON-PERFORMING LOANS TO TOTAL LOANS
Loans Recoveries Rate
Loans Loss Reserve
Earnings coverage
Capital Adequacy

Capital Formation Ratio
Capital to Assets Growth
Gross Capital to Average Assets plus Reserves

NON-PERFORMING LOANS TO TOTAL LOANS

Ratio

Measure
Formula

Non Performing Loans To Total Loans
· […]