Huge revenue decrease Goldman Sachs expected

For the past book year, according to the analyst's expectations the revenue will be around 33,63 billion dollars. This is hugely less then the 2014's revenue of 40,87 billion dollars. For the past book year the analysts expect net profit of 6,68 billion dollars.

For 2015 the consensus of the earnings per share of Goldman Sachs is at profit of 14,39 dollars. So based on these estimates the price/earnings-ratio equals 10,84.

For this year the expected dividend per share is at 2,55 dollars. The dividend yield equals 1,63 percent. The average dividend return of the sector is 1,09 percent.

Highlights banking sector


The book value per share equals around 168,02 dollars. The share is traded at factor 1,08 of this. The bank now trades at a Shiller PE (CAPE) of 0.56. The stock now trades at 156,00 dollars. This equals 10 times the 2014's earnings per share.

The Goldman Sachs stock is covered by 7 analysts (based on fundamental analysis). The average target price for Goldman Sachs is at 201,86 dollars. This is 29,4 percent more then the current stock price of 156,00 dollars. Within the sector banking sector the analystst mostly prefer JP Morgan Chase, Van Lanschot NV and Bank of America.

The three most recent recommendations for the banking sector are from RBC Capital Markets (hold, 190,00 dollars), Barclays (hold, 230,00 dollars) and Nomura Securities (hold, 220,00 dollars).

2009 worst year for Goldman Sachs


The matrix above shows Goldman Sachs's historical returns expressed in the different entry years in the left axis.

The year 2009 was with a price loss of 61 percent the worst year investors. 2010 was with a return of 102 percent by far the best year since 2008. Who bought the share in 2008 (price at that time 214,80 dollars) now has a price loss of 27 percent.

The stock now trades at 156,00 dollars. This equals 10 times the 2014's earnings per share.


The graph above shows the developments of Goldman Sachs's stock price (blue) and revenue (red) for the period 2008 till 2015 (the analyst's expectations. It seems that the bank's revenue hardly is connected with the stock price: the correlation equals -0,7.