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GuruFocus has detected 2 Warning Signs with Goldman Sachs Group Inc $GS.
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Goldman Sachs Group Inc (NYSE:GS)
Enterprise Value
$229,846 Mil (As of Today)

Think of enterprise value as the theoretical takeover price. It is more comprehensive than market capitalization (market cap), which only includes common equity. Enterprise Value is calculated as the market cap plus debt and minority interest and preferred shares, minus total cash and cash equivalents.

EV/EBIT ratio is calculated as enterprise value divided by its EBIT. As of today, Goldman Sachs Group Inc's enterprise value is $229,846 Mil. Goldman Sachs Group Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was $10,304 Mil. Therefore, Goldman Sachs Group Inc's EV/EBIT ratio for today is 22.31.

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Goldman Sachs Group Inc's enterprise value is $229,846 Mil. Goldman Sachs Group Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2016 was $11,302 Mil. Therefore, Goldman Sachs Group Inc's EV/EBITDA ratio for today is 20.34.

EV/Revenue ratio is calculated as enterprise value divided by its Revenue. As of today, Goldman Sachs Group Inc's enterprise value is $229,846 Mil. Goldman Sachs Group Inc's revenue for the trailing twelve months (TTM) ended in Dec. 2016 was $30,608 Mil. Therefore, Goldman Sachs Group Inc's EV/Revenue ratio for today is 7.51.


Definition

Enterprise Value is calculated as the market cap plus debt and minority interest and preferred shares, minus total cash and cash equivalents.

Goldman Sachs Group Inc's Enterprise Value for the fiscal year that ended in Dec. 2016 is calculated as

Enterprise Value (A: Dec. 2016 )
=Market Cap+Preferred Stock+Long-Term Debt & Capital Lease Obligation
=95217.2925+11203+210609
+Current Portion of Long-Term Debt+Minority Interest-Cash and Cash Equivalents
+39265+0-121711
=234,583

Goldman Sachs Group Inc's Enterprise Value for the quarter that ended in Dec. 2016 is calculated as

Enterprise Value (Q: Dec. 2016 )
=Market Cap+Preferred Stock+Long-Term Debt & Capital Lease Obligation
=95217.2925+11203+210609
+Current Portion of Long-Term Debt+Minority Interest-Cash and Cash Equivalents
+39265+0-121711
=234,583

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Explanation

When an investor buy a company, the investor needs to pay not only the common shares, he/she also needs to pay the shareholders of Preferred Stocks. He also assumes the debt of the company, and receives the cash on the company's balance sheet.

If a company has more cash than debt, the investor actually pays less than the Market Cap because he immediately owns the cash once the transaction goes through.

The market value of Preferred Stock needs to be added to the market value of common stocks in the calculation of enterprise value.

For the companies with the same Market Cap, the smaller the Enterprise Value is, the cheaper the company is.

Enterprise Value can be negative when the company's net cash is more than its Market Cap. In this case the investor is basically getting the company for free and get paid for that.

1. EV/EBIT ratio is calculated as enterprise value divided by its EBIT.

Goldman Sachs Group Inc's EV/EBIT for today is

Goldman Sachs Group Inc's current Enterprise Value is $229,846 Mil.
Goldman Sachs Group Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was 1576 (Mar. 2016 ) + 2463 (Jun. 2016 ) + 2868 (Sep. 2016 ) + 3397 (Dec. 2016 ) = $10,304 Mil.

2. EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA.

Goldman Sachs Group Inc's EV/EBITDA for today is:

Goldman Sachs Group Inc's current Enterprise Value is $229,846 Mil.
Goldman Sachs Group Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2016 was 1815 (Mar. 2016 ) + 2708 (Jun. 2016 ) + 3115 (Sep. 2016 ) + 3664 (Dec. 2016 ) = $11,302 Mil.

3. EV/Revenue ratio is calculated as enterprise value divided by its Revenue.

Goldman Sachs Group Inc's EV/Revenue for today is:

EV/Revenue ratio=Enterprise Value (Today)/Revenue (TTM)
=229846.250/30608
=7.51

Goldman Sachs Group Inc's current Enterprise Value is $229,846 Mil.
Goldman Sachs Group Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2016 was 6338 (Mar. 2016 ) + 7932 (Jun. 2016 ) + 8168 (Sep. 2016 ) + 8170 (Dec. 2016 ) = $30,608 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Related Terms

Market Cap, Preferred Stock, Long-Term Debt & Capital Lease Obligation, Cash and Cash Equivalents, Current Portion of Long-Term Debt


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Goldman Sachs Group Inc Annual Data

Nov07Nov08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev 322,758148,721241,575274,756250,940236,485255,660269,917254,660234,583

Goldman Sachs Group Inc Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
ev 269,917259,489281,302262,347254,660250,796220,436231,938234,5830
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