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StockCentral :: Community
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Join in on the discussion with other like-minded investors in our community forums. Learn about the fundamental investing methodology and participate in educational workshops in the Investing forums, stay up-to-date on StockCentral news and make suggestions to the StockCentral team in Central Square, and discuss your favorite stock or recent market news in our A-Z ticker-based forums.
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Rajiv Roy
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| 02/19/2007 5:47 PM |
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Goldman Sachs, ticker
symbol GS on the NYSE is a large cap company. Based on FY2006
revenues of $69.3 billion. It is in the Financial Services industry.
Of the 2006
15% comes from Investment banking
38% comes from Fixed Income, Currency and Commodities trading
23% comes from Equities trading ( That is why all of us are here :) )
11% comes from Asset management.
If a company wants to go public:
- GS can provide investment baking services
- The equity portion may actually invest in it.
- When the company founders see their payday come through after the IPO, GS will advise them on their personal portfolio.
Cozy huh?
Anyhow William Thomas got me lookign at Financial Services by his post on CME over under Investing in Extarordinary Equites. Then I saw NYX was a Cramer 2007 recommendation. Both CME (PE of 50) and NYX(PE of 65) while showing great growth had nose-bleed PEs.
Then I stumbled into GS with a PE of 11. What is wrong with this picture?
Rev grew $43.3B in 05 to $69.3B in 06
Gross Profit $11.6B in 05 to $18.8B in 06
NI $5.6B in 05 to $9.6B in 06
BTW 06 results are AFTER GS gave $16.5B in bonus to its employees in '06
PEs of Merril Lynch (11), Morgan Stanley(12) are also in the same range.
Net Income 13% somewhat higher than MER (9%) and MS (11%)
(Source : Google FInance)
- GS alums (source : forbes.com)
- Henry Paulson - Current Treasury Secy,
- Rubin - Previous Treasury Secy.
- Joshua Bolten - Current white house chief of staff
- John Corzine - Gov of New Jersey
- Jim Cramer - 'nuff said.
- Mario Draghi - Gov of Bank of Italy
Analysts estimate 15.2% for EPS LT Growth rate (reuters.com)
Here is my analysis:
http://www.stockfundas.com/home.aspx?cmd=cmdRcvTckAnl&frmUsrId=3&tckId=3603
Would love to hear from others.
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Rajiv
www.stockfundas.com
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