How to value the stocks of digital banks: J.P. Morgan

The addition of digital banks, finance-embedded internet companies, and other challengers to incumbent banks creates a puzzle for stock analysts: how to figure out what these companies are worth. Most of these new entities are not publicly listed, although that is changing, with upcoming IPOs from the likes of Kakao Bank, Paytm, Bukalapak, and Grab’s SPAC acquisition – not to mention the possibility of a restructured Ant Group. Public or private, these challengers are all getting bank licenses, which means they need to be weighed by anyone researching financial institutions