Goldman Sachs(GS), just like the hero of Shawshank Redemption is trapped in a prison for a crime that it didn't commit. Just like Andy, Goldman will have its good days and bad days on the inside, but ultimately will escape. Earnings were down last quarter, but still beat the estimates.
Let's look at some numbers and compare it to the sector.
P/B: Goldman 1.49, Sector 1.75
P/E: Goldman 6, Sector 14
P/CF: Goldman 4.75, Sector 11.65
P/S: Goldman 0.68, Sector 3.31
5-year sales growth rate: Goldman 30.94%, Sector 17.15%
5-year EPS growth rate: Goldman 43.78%, Sector 16.45%
Net income/employee: Goldman $380, 021, Sector $132,411
ROE 5-year avg.: Goldman 25.16%, Sector 14.94%
Simply put, GS provides both growth and value. It will probably be a bumpy ride for a while, but within the next five years you should be well rewarded.
No comments:
Post a Comment