Goldman Story

GS
GS -- USA Stock  

USD 202.49  2.55  1.24%

As many millenniums are trying to avoid financial services space, it makes sense to sum up Goldman Sachs Group a little further and try to understand its current market patterns. Why are we still confident in anticipation of a complete recovery. Is the entity valuation justified? Here I will cover 2020 perspective on the current valuation of the stock to give you a better outlook on taking a possible position in this stock.
Published over a week ago
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Is Goldman Sachs Group well positioned for November economic uncertainties?
Goldman Sachs Group reports 452.89 B of total liabilities with total debt to equity ratio (D/E) of 4.97, which implies that Goldman Sachs Group may not be able to produce enough cash to satisfy its debt commitments. The entity has a current ratio of 1.72, which is generally considered normal. Goldman Sachs is UNDERVALUED at 223.91 per share with modest projections ahead.
We determine the current worth of Goldman Sachs Group using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Goldman Sachs Group based exclusively on its fundamental and basic technical indicators. By analyzing Goldman Sachs's financials, quarterly and monthly indicators, and related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Goldman Sachs's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Goldman Sachs. We calculate exposure to Goldman Sachs's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Goldman Sachs's related companies.

Goldman Sachs Group Investment Alerts

Goldman investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Goldman Sachs Group performance across your portfolios.Please check all investment alerts for Goldman

Goldman Sachs Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare Goldman value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Goldman Sachs competition to find correlations between indicators driving the intrinsic value of Goldman.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for Goldman Sachs, but it might be worth checking our own buy vs. sell analysis

Breaking it down

The small fall in market price for the last few months may raise some interest from retail investors. The stock closed today at a share price of 211.23 on slow start in trading volume. The company directors and management did not add much value to Goldman Sachs Group investors in September. However, diversifying your holdings with Goldman Sachs Group or similar stocks can still protect your portfolio during high-volatility market scenarios. The stock standard deviation of daily returns for 30 days investing horizon is currently 1.69. The below-average Stock volatility is a good sign for longer-term investment options and for buy-and-hold investors.

Margins Breakdown

Goldman profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Goldman Sachs itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Goldman Sachs profit margins.
0.23
Profit Margin
0.33
EBITDA Margin
EBITDA Margin0.33
Gross Margin0.89
Profit Margin0.23


Goldman Sachs Earnings Before Interest Taxes and Depreciation Amortization EBITDA is relatively stable at the moment. Moreover, Goldman Sachs Average Assets is relatively stable at the moment.

Goldman is expecting lower volatility in November

Mean deviation is down to 1.31. It may connote a possible volatility fall. Goldman Sachs Group has relatively low volatility with skewness of -0.28 and kurtosis of 1.75. However, we advise all investors to independently investigate Goldman Sachs Group to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns.

Our Conclusion on Goldman Sachs

While some other companies under the capital markets industry are still a bit expensive, Goldman Sachs may offer a potential longer-term growth to retail investors. With a relatively neutral outlook on the latest economy, it is better to hold off any trading of Goldman as the current risk-reward utility is not appealing enough. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Goldman Sachs.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Goldman Sachs Group. Please refer to our Terms of Use for any information regarding our disclosure principles.

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