Stock Valuation: The Case of Goldman Sachs

60 Pages Posted: 19 Aug 2004

See all articles by Yao Yao

Yao Yao

Norwegian School of Economics (NHH) - MIB

Date Written: August 2004

Abstract

This paper is mainly to achieve two aims: 1. present industry analysis on investment banking business; 2. value Goldman Sachs stock through different methods.

The paper is consisted of eight parts. Part one is introduction. In part two we make a general review on I-banking industry. In part three we present the profile of Goldman Sachs Group. Then in part four we will analyse GS financial data, based on its latest annual reports. In part five, we will briefly list business risks for GS. In part six we compare fundamental valuation ratios of three biggest investment banks. In part seven we present relevant valuation theory and then value Goldman Sachs stock through three methods: Dividend Discount Model, Price multiples and a simple Residual Income Model. As a final step, in the eighth part we draw a general conclusion of the paper.

Keywords: Yao Yao, Goldman Sachs, investment bank, valuation

JEL Classification: G24

Suggested Citation

Yao, Yao, Stock Valuation: The Case of Goldman Sachs (August 2004). Available at SSRN: https://ssrn.com/abstract=577841 or http://dx.doi.org/10.2139/ssrn.577841

Yao Yao (Contact Author)

Norwegian School of Economics (NHH) - MIB ( email )

NHH, Helleveien 30
N-5045 Bergen
Norway

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