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Goldman Sachs Group Inc (NYSE:GS)
Median PS Value
$177.99 (As of Today)

This valuation method assumes that the stock valuation will revert to its historical mean in terms of Price/Sales Ratio. The reason we use P/S Ratio instead of P/E Ratio or P/B Ratio is because Price/Sales Ratio is independent of profit margin, and can be applied to a broader range of situations.

Median P/S Value is calculated as trailing twelve months (TTM) revenue per share times 10-Year median P/S ratio. Goldman Sachs Group Inc's revenue per share for the trailing twelve months (TTM) ended in Mar. 2017 was $75.421. Goldman Sachs Group Inc's 10-Year median P/S ratio is 2.36. Therefore, the Median P/S Value for today is $177.99.

As of today, Goldman Sachs Group Inc's share price is $223.22. Goldman Sachs Group Inc's median P/S value is $177.99. Therefore, Goldman Sachs Group Inc's Price to Median P/S Value Ratio for today is 1.25.

GS' s Price-to-Median-PS-Value Range Over the Past 10 Years
Min: 0.67   Max: 1.67
Current: 1.25

0.67
1.67

During the past 13 years, the highest Price to Median P/S Value Ratio of Goldman Sachs Group Inc was 1.67. The lowest was 0.67. And the median was 1.04.

GS's Price-to-Median-PS-Value is ranked lower than
64% of the 656 Companies
in the Global Capital Markets industry.

( Industry Median: 1.05 vs. GS: 1.25 )

Definition

Goldman Sachs Group Inc's Median P/S Value for today is calculated as

Median P/S Value=Total Annual Sales / Shares Outstanding*10-Year Median P/S Ratio
=Revenue per Share (TTM)*10-Year Median P/S Ratio
=75.421*2.36
=177.99

10-Year Median P/S Ratio is 2.36.
Goldman Sachs Group Inc's revenue per share for the trailing twelve months (TTM) ended in Mar. 2017 was 18.06 (Jun. 2016 ) + 18.987 (Sep. 2016 ) + 19.269 (Dec. 2016 ) + 19.105 (Mar. 2017 ) = $75.421.

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


Explanation

This valuation method assumes that the stock valuation will revert to its historical mean in terms of Price/Sales Ratio. The reason we use P/S Ratio instead of P/E Ratio or P/B Ratio is because Price/Sales Ratio is independent of profit margin, and can be applied to a broader range of situations.

It also assumes that over time the profit margin is constant. If a company increases its profit margin to a sustainable level, this value might under-estimate its value. If it has permanent declined profit margins, this may over-estimate the company’s value.

Goldman Sachs Group Inc's Price to Median P/S Value Ratio for today is calculated as

Price to Median P/S Value=Share Price/Median P/S Value
=223.22/177.99
=1.25

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


Related Terms

P/E Ratio, P/B Ratio, P/S Ratio, Intrinsic Value (DCF Projected), Intrinsic Value (DCF), Intrinsic Value (DE), Graham Number, GAVA


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
medpsvalue 235.17117.06193.70157.79121.70156.24161.43172.03173.80166.34

Goldman Sachs Group Inc Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
medpsvalue 172.03180.73181.84174.97173.80153.11149.36158.86166.34177.99
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