Goldman Sachs Price To Book vs. Price To Sales
| GSLC Etf | USD 117.41 2.11 1.83% |
For Goldman Sachs profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Goldman Sachs to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Goldman Sachs ActiveBeta utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Goldman Sachs's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Goldman Sachs ActiveBeta over time as well as its relative position and ranking within its peers.
Goldman |
The market value of Goldman Sachs ActiveBeta is measured differently than its book value, which is the value of Goldman that is recorded on the company's balance sheet. Investors also form their own opinion of Goldman Sachs' value that differs from its market value or its book value, called intrinsic value, which is Goldman Sachs' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Goldman Sachs' market value can be influenced by many factors that don't directly affect Goldman Sachs' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Goldman Sachs' value and its price as these two are different measures arrived at by different means. Investors typically determine if Goldman Sachs is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Goldman Sachs' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Goldman Sachs ActiveBeta Price To Sales vs. Price To Book Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Goldman Sachs's current stock value. Our valuation model uses many indicators to compare Goldman Sachs value to that of its competitors to determine the firm's financial worth. Goldman Sachs ActiveBeta is one of the top ETFs in price to book as compared to similar ETFs. It also is one of the top ETFs in price to sales as compared to similar ETFs fabricating about 0.55 of Price To Sales per Price To Book. The ratio of Price To Book to Price To Sales for Goldman Sachs ActiveBeta is roughly 1.83 . The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Goldman Sachs' earnings, one of the primary drivers of an investment's value.Goldman Price To Sales vs. Price To Book
Price to Book (P/B) ratio is used to relate a company book value to its current market price. A high P/B ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. Book value is the accounting value of assets minus liabilities.
Goldman Sachs |
| = | 2.86 X |
Price to Book ratio is mostly used in financial services industries where assets and liabilities are typically represented by dollars. Although low Price to Book ratio generally implies that the firm is undervalued, it is often a good indicator that the company may be in financial or managerial distress and should be investigated more carefully.
Price to Sales ratio is typically used for valuing equity relative to its own past performance as well as to performance of other companies or market indexes. In most cases, the lower the ratio, the better it is for investors. However, it is advisable for investors to exercise caution when looking at price-to-sales ratios across different industries.
Goldman Sachs |
| = | 1.56 X |
The most critical factor to remember is that the price of equity takes a firm's debt into account, whereas the sales indicators do not consider financial leverage. Generally speaking, Price to Sales ratio shows how much market values every dollar of the company's sales.
Goldman Price To Sales Comparison
Goldman Sachs is currently under evaluation in price to sales as compared to similar ETFs.
Goldman Sachs Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Goldman Sachs, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Goldman Sachs will eventually generate negative long term returns. The profitability progress is the general direction of Goldman Sachs' change in net profit over the period of time. It can combine multiple indicators of Goldman Sachs, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
The index is designed to deliver exposure to equity securities of large capitalization U.S. issuers. GS Activebeta is traded on NYSEARCA Exchange in the United States.
Goldman Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Goldman Sachs. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Goldman Sachs position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Goldman Sachs' important profitability drivers and their relationship over time.
Use Goldman Sachs in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Goldman Sachs position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Goldman Sachs will appreciate offsetting losses from the drop in the long position's value.Goldman Sachs Pair Trading
Goldman Sachs ActiveBeta Pair Trading Analysis
The ability to find closely correlated positions to Goldman Sachs could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Goldman Sachs when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Goldman Sachs - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Goldman Sachs ActiveBeta to buy it.
The correlation of Goldman Sachs is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Goldman Sachs moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Goldman Sachs ActiveBeta moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Goldman Sachs can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Goldman Sachs position
In addition to having Goldman Sachs in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Books Thematic Idea Now
Books
Companies involved in publishing of books, newspapers, periodicals and other mass publications. The Books theme has 48 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Books Theme or any other thematic opportunities.
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To fully project Goldman Sachs' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Goldman Sachs ActiveBeta at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Goldman Sachs' income statement, its balance sheet, and the statement of cash flows.