Question
Complete a thorough financial analysis of Goldman Sachs, a publicly traded corporation. The project deliverables should be a structured Word document and accompanying Excel spreadsheets.
Complete a thorough financial analysis of Goldman Sachs, a publicly traded corporation. The project deliverables should be a structured Word document and accompanying Excel spreadsheets. Requirements must include the following analysis: a. One page description of the Goldman Sachs: its products, markets, subsidiaries, risks b. Overall trend assessment of the companys balance sheet and income statement for the last three to five years. c. Selected ratio trend analysis. The following ratio categories must be included, with three ratios (minimum) from each category: i. Short-term solvency ratios, also known as liquidity ratios ii. Long-term solvency ratios, also known as financial leverage ratios iii. Asset management ratios, also known as turnover ratios iv. Profitability ratios v. Market value ratios. A three-year ratio trend analysis is the minimum expectation. d. Analysis of the companys stock price, PE (Price-Earnings Ratio) and EPS (Earnings per Share Ratio) trends for the last three to five years. Analysis must include comparison to key market competitors. e. Evaluation of the firms current Beta (trend not required) with comparison to key market competitors. f. Assessment of the firms capital structure (Debt to Equity Ratio) including any significant changes in the firms capital structure over the last three to five years. g. Calculate the WACC (weighted average cost of capital) using both the Security Market Line Approach and the Dividend Growth Model Approach. Compare the WACC for each approach, discussing the advantages and disadvantages of each. h. Assessment of the firms statement of cash flows for the last three to five years, including an assessment of the firms free cash flow over the last three to five years. i. Closing summary of the firms financial health in relation to the overall economy and within its industry, using analyst recommendations as a guide.
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