Among those who believe that Goldman is basically the devil’s spawn, there’s of course only one answer to the above question: Yes! But there’s another group that seems to be asking the same question, and that’s investors. Consider that in the past year, Goldman’s stock has fallen some 30 percent. It trades for just 0.7 times book value, which says that investors either think that Goldman can’t earn enough to cover its cost of capital, or that its assets are overstated or liabilities understated. Consider this: Except during the financial crisis, Goldman’s market capitalization was last around $50 billion back in the fall of 2005. Back then, Goldman had $670 billion in assets, and $27 billion in shareholders’ equity. Today, Goldman has $951 billion in assets, and $72 billion in shareholders’ equity. Another way to think about Goldman’s valuation is that the firm effectively has $300 billion in cash and close cash equivalents on its balance sheet. You can get to that figure by adding cash, Level 1 assets, and Level 2 assets that could be easily liquidated. Goldman has total long-term and short-term debt of $220 billion, and a market value of $50 billion. In other words, the market is giving Goldman very little credit for the ongoing earnings of its business, and Goldman has a lot of dry powder relative to the opportunities it has. (A caveat: Goldman’s immense derivatives business would gobble up lots of cash were the firm to be hit with credit downgrades.) Among its banking brethren, Goldman isn’t unique or even the worst offShould goldman sachs go out of business - baby cot with mattress for sale - glass wool ceiling tiles for saleShould goldman sachs go out of business - baby cot with mattress for sale - glass wool ceiling tiles for saleShould goldman sachs go out of business - baby cot with mattress for sale - glass wool ceiling tiles for saleShould goldman sachs go out of business - baby cot with mattress for sale - glass wool ceiling tiles for sale The e-commerce company in China offers quality products such as baby cot with mattress for sale , glass wool ceiling tiles for sale, and more. For more , please visit China Suppliers today!
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