- FY2021 was a financial outlier causing Goldman’s valuation to bloat, having come down 27.6% from its recent high, stock is into interesting territory.
- Goldman Sachs is trading at P/TBV just above 1.0 indicating a historically attractive opportunity. Should it go below 0.9, it would signal a strong opportunity.
- Uncertainty tied to the global macro environment is a risk factor for those willing to invest in banks as earnings suffer in negative consumer environments and economic contractions.
- Dollar-cost-averaging is a suitable strategy in this environment catering to both the present opportunity and market uncertainty tied to the mid-term stock price movements.
For further details see:
Goldman Sachs: A Fair Buy Enroute A Strong Year