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GuruFocus has detected 1 Warning Sign with Goldman Sachs Group Inc $GS.
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Goldman Sachs Group Inc (NYSE:GS)
EV-to-EBIT
20.75 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, Goldman Sachs Group Inc's enterprise value is $233,775 Mil. Goldman Sachs Group Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was $11,267 Mil. Therefore, Goldman Sachs Group Inc's EV/EBIT ratio for today is 20.75.

GS' s EV-to-EBIT Range Over the Past 10 Years
Min: 10.8   Max: 76.3
Current: 20.75

10.8
76.3

During the past 13 years, the highest EV/EBIT Ratio of Goldman Sachs Group Inc was 76.30. The lowest was 10.80. And the median was 23.50.

GS's EV-to-EBIT is ranked lower than
62% of the 603 Companies
in the Global Capital Markets industry.

( Industry Median: 15.70 vs. GS: 20.75 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Goldman Sachs Group Inc's enterprise value for the quarter that ended in Mar. 2017 was $236,484 Mil. Goldman Sachs Group Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was $11,267 Mil. Goldman Sachs Group Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Mar. 2017 was 4.76%.


Definition

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

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=233775.030/11267
=20.75

Goldman Sachs Group Inc's current Enterprise Value is $233,775 Mil.
Goldman Sachs Group Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was 2463 (Jun. 2016 ) + 2868 (Sep. 2016 ) + 3397 (Dec. 2016 ) + 2539 (Mar. 2017 ) = $11,267 Mil.

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


Explanation

This is a more accurate valuation of companies' operation because it consider the debt and cash on its balance sheet, and non-operating items such as interest payment, tax, and one-time items are not included in the Operating Income.

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt).

Goldman Sachs Group Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Mar. 2017 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Mar. 2017 )=EBIT (TTM)/Enterprise Value (Q: Mar. 2017 )
=11267/236484.0504
=4.76 %

Goldman Sachs Group Inc's Enterprise Value for the quarter that ended in Mar. 2017 was $236,484 Mil.
Goldman Sachs Group Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was 2463 (Jun. 2016 ) + 2868 (Sep. 2016 ) + 3397 (Dec. 2016 ) + 2539 (Mar. 2017 ) = $11,267 Mil.

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


Related Terms

Enterprise Value, Earnings Yield (Joel Greenblatt), Earnings Before Interest and Taxes (EBIT)


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
ev2ebit 18.3363.6614.0324.2940.6821.1021.7821.8226.9222.65

Goldman Sachs Group Inc Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
ev2ebit 21.8219.5523.1024.0326.9239.0630.8029.0722.6520.99
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