Goldman Sachs - Comparative Multiple Analysis

Goldman Sachs (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Goldman Sachs

WikiWealth compares Goldman Sachs's revenue, EBITDA, and EBIT multiples to their peers in order to determine the appropriate fair valuation. Click in the top right corner to experiment with Goldman Sachs's comparative analysis.

Notes from the analysis:

1. WikiWealth uses quantitative measures to determine the multiple range for Goldman Sachs.
2. Free cash flow to the firm (FCF) multiple is free cash flow to equity holders plus interest owed to Goldman Sachs's debt holders.
3. Multiples incorporate benefits due to economies of scale; WikiWealth compares absolute enterprise value multiples to competitor's multiples.
4. WikiWealth excludes outliers when calculating individual company multiples.

Helpful Information for Goldman Sachs's Analysis


How does this work? The Comparative Investment Analysis determines the value of Goldman Sachs by comparing Goldman Sachs financial ratios, prices, growth rates, margins, etc. to those of relevant peer groups.

Value Investing Importance? This method is widely used by investment professionals to determine the correct price of investments, especially initial public offerings (IPOs). It is one element of WikiWealth's three Wall Street approaches used to determine the correct fair value of Goldman Sachs.

See the Goldman Sachs cash flow (DCF) analysis for a completely different approach that's popular on Wall Street for determining the value of an investment in Goldman Sachs.

Also, see the Goldman Sachs's buffett intrinsic valuation analysis for WikiWealth's attempt to replicate the investing formula's used by Warren Buffett and Goldman Sachs's valuation conclusion for a quick summary.