MUSLIM COMMERCIAL BANK: VALUATION

Abstract

The Muslim Commercial Bank case is primarily about understanding the issue of valuation in Pakistan's first privatization. The Nawaz Sharif government, confident after the elections in 1990, wasted little time in embarking on a big bang approach to privatization. The time frame was remarkable in the speed of the transaction, though there was a controversy over the lack of transparency in the valuation and bidding process. The case is primarily a valuation exercise touching on the Break up/book value, the Dividend Growth Model, the EPS and the Free Cashflow Model.