real CoE (ROE PB) Avg 1995-2005: Banks: 7.2% financials: 6.3% §§kigiiIiii/h1/111 ;;;; Recession Thinks (GCS III) —Finenc01. (GIES 6 San IBES. Comotetst Devegelw an We consider banks to be highly competitive enterprises with little value added growth potential. Thus, we value banks using steady-state PEs bas