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Goldman Sachs Group Inc. Stock: 5 Critical Figures to Watch

Goldman Sachs Group Inc. (GS) is a leading global investment bank and financial services company. Its stock has been a popular investment for decades, and it remains a key component of many portfolios. In this article, we will take a closer look at five critical figures that investors should watch when evaluating GS stock.

1. Earnings Per Share (EPS)

EPS is a measure of a company's profitability. It is calculated by dividing the company's net income by the number of shares outstanding. GS's EPS has been growing steadily in recent years, rising from $22.43 in 2019 to $39.89 in 2021. This growth is expected to continue in the future, with analysts forecasting EPS of $45.54 in 2023.

2. Price-to-Earnings Ratio (P/E)

The P/E ratio is a measure of a company's valuation. It is calculated by dividing the current stock price by the EPS. GS's P/E ratio is currently around 10, which is in line with the industry average. This indicates that GS is fairly valued relative to its peers.

goldman sachs group inc. stock

3. Dividend Yield

The dividend yield is a measure of a company's income potential. It is calculated by dividing the annual dividend per share by the current stock price. GS's dividend yield is currently around 2%, which is below the industry average of 3%. This suggests that GS is not a particularly attractive investment for income investors.

Goldman Sachs Group Inc. Stock: 5 Critical Figures to Watch

4. Return on Equity (ROE)

ROE is a measure of a company's profitability relative to its shareholders' equity. It is calculated by dividing the net income by the shareholders' equity. GS's ROE has been consistently high in recent years, averaging around 15%. This indicates that GS is using its shareholders' equity efficiently to generate profits.

5. Debt-to-Equity Ratio

The debt-to-equity ratio is a measure of a company's financial leverage. It is calculated by dividing the total debt by the shareholders' equity. GS's debt-to-equity ratio is currently around 1, which is considered to be a moderate level of leverage. This suggests that GS is not excessively reliant on debt to finance its operations.

Conclusion

These five figures are just a starting point for evaluating GS stock. Investors should also consider the company's overall financial health, its competitive landscape, and its long-term growth prospects. By carefully considering all of these factors, investors can make informed decisions about whether or not to invest in GS stock.

1. Earnings Per Share (EPS)

Additional Resources

FAQs

1. What is Goldman Sachs Group Inc.'s business model?

Goldman Sachs Group Inc. is a leading global investment bank and financial services company. It provides a wide range of financial services to corporations, governments, institutions, and individuals. These services include investment banking, asset management, private wealth management, and consumer banking.

2. What are the key drivers of Goldman Sachs Group Inc.'s growth?

The key drivers of Goldman Sachs Group Inc.'s growth are its strong brand reputation, its global reach, and its diversified business model. The company has a long history of providing innovative financial products and services, and it has a strong track record of success.

3. What are the risks associated with investing in Goldman Sachs Group Inc. stock?

The risks associated with investing in Goldman Sachs Group Inc. stock include exposure to the financial markets, regulatory changes, and competition. The company operates in a highly competitive industry, and it is subject to the same risks as other financial institutions.

4. What are the potential rewards of investing in Goldman Sachs Group Inc. stock?

The potential rewards of investing in Goldman Sachs Group Inc. stock include capital appreciation and dividends. The company has a history of paying dividends, and its stock has performed well over the long term.

5. Is Goldman Sachs Group Inc. stock a good investment for me?

1. What is Goldman Sachs Group Inc.'s business model?

Whether or not Goldman Sachs Group Inc. stock is a good investment for you depends on your individual circumstances and investment goals. You should carefully consider the risks and potential rewards before making an investment decision.

6. What are some tips for investing in Goldman Sachs Group Inc. stock?

Here are some tips for investing in Goldman Sachs Group Inc. stock:

Invest for the long term. Goldman Sachs Group Inc. stock has performed well over the long term, but it can be volatile in the short term.
Diversify your portfolio. Don't put all of your eggs in one basket. Spread your investments across a variety of stocks, bonds, and other assets.
Rebalance your portfolio regularly. As your investments grow, you may need to rebalance your portfolio to maintain your desired asset allocation.
Seek professional advice. If you're not sure how to invest, you should seek professional advice from a financial advisor.