Tangible book value tbv is calculated by subtracting intangible assets from the companys book value. Gs at 76% of tangible book 70% of stated i feel the risk is priced in. Its hard to fathom that its shares have rallied more than 30% from the december lows, but goldman sachs reported that its 2018 book value was up over 14% from a. Recent scandals have further hurt the share price while returns on equity have gone up. Tangible book is considered a hard measure of shareholder equity because it. Goldman sachs group price tangible book value chart for gs. The book value is essentially the tangible accounting value of a firm. Will goldman sachs rocket back to two times book value. Goldman sachs tangible book value per share gs zacks. Within each score, stocks are graded into five groups. Date, stock price, book value per share, price to book ratio. Goldman sachs trading below tangible book value nyse. Morgan stanley, goldman sachs fall below tangible book value. May 2003 return on average tangible shareholders equity and tangible book value per share pdf, 7 kb.
Tbv is frequently used to illustrate how much of a company is left after a bankruptcy filing. Goldman, though, cranked out an annualized return on equity of 14. The theory is that tangible book value can create a potential floor value in a stock price. Corrects comparison of goldman sachs and morgan stanley share prices to tangible book values in 12 paragraph by anna irrera and david henry. Charles lemonides, founder of valueworks in new york, called goldman sachs another excellent value. Goldman sachs tangible book value per share charts, historical data, comparisons. A 15% discount to tangible book value is a great deal. Spotlight turns to goldman sachs after morgan stanley deal. Gs has slipped below tangible book value on worries over the yield curve, 1mdb and the ongoing correction in the us equity market 2018 has been a tough. Gs s pricetotangiblebook range over the past 10 years min. Correctedspotlight turns to goldman sachs after morgan. Tangible book value is calculated by subtracting intangible assets intellectual property, patents, goodwill etc. Goldman sachs group price to book value gs ycharts. In other words, this isnt the same goldman sachs from 2008.
Hence, goldmanchs groups price to tangible book ratio of today is 0. Goldman sachs gs, cheap at 76% of tangible book value. But investors must realize that its highly leveraged. Goldman sachs trades extremely low compared to its own historical valuation metrics and should do. Since intangibles such as goodwill cannot be sold when the company liquidates, tangible book value per share is considered more accurate in reflecting how much shareholders will receive when the company liquidates. Goldman sachs group price to tangible book value gs. What to expect when goldman sachs and citigroup report. Goldman sachs group tangible book value per share gs. Goldman sachs, below book value, is dows worst performer. Heres what a few analysts said about goldman sachs ahead. The price to tangible book value ratio ptbv expresses share price as a proportion of the companys tangible book value reported on the companys balance sheet. Summary goldman sachs is trading below tangible book value which should never take place. He called citi incredibly attractive, with shares selling well below tangible book value.
Goldmanchs groups tangible book value per share for the quarter that ended in dec. The current price to book ratio for goldman sachs as of october 17, 2019 is 0. For instance, if a company filed bankruptcy with five million in current assets, three million in gross property, plant. The scores are based on the trading styles of value, growth, and momentum. In depth view into goldman sachs group tangible book value per share including historical data from 1999, charts, stats and industry comps. Narrowmoat goldman sachs is currently trading at around tangible book value, and it has over 30% upside to our fair value estimate. Theres also a vgm score v for value, g for growth and m for momentum, which combines the weighted average of the individual style scores into one score. Goldman sachs has a tangible book value per share of 215. Morgan stanley and goldman sachs both trade around 80% of tangible book value.
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