China -  Chinese law firm

How does the market value trust companies

It is very difficult, and requires looking at revenue streams (actual and projected), and investment properties.  However, because of the diversity in the different types of trusts, it is impossible to compare different trusts with only one metric.  For example, price-to-book ratios for investments in trust companies have varied from 0.2 to 16.8 times.  A great deal of due diligence is required to examine each of a trustís products, as credit risk may or may not exist depending on the contractual terms of each individual product.



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