At the Fed of New York back in the 1980s, one and a quarter times book was seen as the natural limit
for bank valuations.
But the ongoing compression in
European banking valuations is puzzling — who the hell wants to bet & sweat over sub - 0.5 P / B banks, when the cream of the crop remains on sale at 1.0 times book (or less)?!
Although I found
the bank valuation chapter helpful, I think professor Aswath Damodaran's book The Dark Side of Valuation does a better job of laying out the intricacies of valuing high growth and start - up companies.
Depending on the mortgage you go for, you may have to pay
the bank a valuation fee for them to assess how much they are prepared to lend you for the property.