Fundamental Analysis


The Goldman Sachs Group, Inc. is a leading global investment banking, securities and investment management firm that provides a wide range of financial services to a substantial and diversified client base that includes corporations, financial institutions, governments and individuals. Founded in 1869, the firm is headquartered in New York and maintains offices in all major financial centers around the world.

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Reasons to buy – Goldman Sachs

High level decisions on buy or sell for a stock should be driven by

1. The margin that the company makes. i.e. Out of $1 that the company sells how much does the company taken home.

    • Here we see Goldman Sachs makes a net margin of 28%. This means that out of $1 that it makes $0.28 is being pocketed as profits.

2. The growth rates of the company on revenue, net income, EPS and Dividend. i.e. If it sold $1 last year how much more did it sell this year.

    • Here we see net revenue growth of 25% in the revenue and the net profit figures grew by 26%.

3. The efficiency ratios of the company on Equity and Assets. i.e. How well is the company able to sweat each $1 that it puts to work in the company.

    • Here we see Goldman Sachs makes a Return on Assets of 1.16% and Return of Equity of 14% which is pretty good. For a huge financial institution like Goldman Sachs, the size of the Assets and corresponding Liabilities will be large and hence a Return on Assets of 1.16% is a very good deal.

GOLD STANDARD : This is one of the no-debate stocks that are a must have in ones portfolio.

FAMOUS INVESTORS: This stock is owned by the Great Warren Buffett so I suppose you don’t have to think twice before investing in this counter.

All these ratios can be found in the attached excel sheets and are based on the EDGAR report submitted by Goldman Sachs to the SEC. All the data on the above analysis can be found at the link below

Balance Sheet

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Income Statement

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