Author Topic: GS - Goldman Sachs  (Read 21782 times)

Spekulatius

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Re: GS - Goldman Sachse
« Reply #70 on: December 29, 2018, 01:02:51 PM »
Book  value hasn’t grown much over the years, but post the financial crisis, GS has become a cannibal. Their share count maxed out in 2010 at 526M shares and now sits at 371M shares. Their ROE has been a bit over 10% over the years, but net earnings yields  were lower due to fines, similar to what other banks experienced. one can argue, if these fines are a cost of doing business or not.

The tax reduction alone should improve the ROE by 10-15%, I think, again similar to other banks. If you by a company with a ROE of 11-12% at <0.9x tangible book and this company is a rational capital allocator (which I think GS is) then one should do OK over time. If they can do even better than that in terms of ROE, this could become quite a home run.

(Edited for typos)
« Last Edit: December 30, 2018, 10:48:43 AM by Spekulatius »
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Shane

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Re: GS - Goldman Sachs
« Reply #71 on: December 30, 2018, 09:24:57 AM »
Thanks Spekulatius!  This was very helpful to me.

Jurgis

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gfp

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Re: GS - Goldman Sachs
« Reply #74 on: January 16, 2019, 05:21:37 AM »
Good results out of Goldman this morning -
https://www.goldmansachs.com/media-relations/press-releases/current/pdfs/2018-q4-results.pdf

(just your standard #1 in its industry $70 Billion market cap company that makes over $10 Billion in net income per year..  )
« Last Edit: January 16, 2019, 06:00:44 AM by gfp »

valuedontlie

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Re: GS - Goldman Sachs
« Reply #75 on: January 16, 2019, 06:04:52 AM »
Full year results obviously look great with revenue up big and per share earnings up ~20%... Q4 maybe not as much... strip out the tax legislation impact and per share earnings were down 15% even with a 3% reduction in average shares out...

Check out page 16 of the earnings release: https://www.goldmansachs.com/media-relations/press-releases/current/pdfs/2018-q4-results.pdf

Cardboard

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Re: GS - Goldman Sachs
« Reply #76 on: January 16, 2019, 06:39:03 AM »
Still a really good buy at this level IMO.

Congratulations to those who bought at peak fear!

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