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  "documentTitle": "why invest in goldman sachs",
  "authorId": "GoldmanSachs",
  "authorName": "St. John's University Student Managed Investment Fund",
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  "notes": "The slide uses historical P/E relative ratios to calculate a target price for GS, concluding it is undervalued.",
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      "text": "Given these estimates from this model, the company cannot be overlooked as this seems to be an ideal buying opportunity.",
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      "text": "Price Estimate: $303.93",
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      "text": "The above price estimates were calculated by multiplying the expected 2007 P/E's of each comparable listed, the E[EPS2007], and the arithmetic average of the historical relationship between GS and each comparable. The average of the five price estimates is $303.93; about $80 more than its current trading price. The $487.66 was calculated using the 7-year industry average P/E, which was 16.266%. As we can see, using this valuation model signifies that Goldman Sachs is currently undervalued across the board. Given these estimates from this model, the company cannot be overlooked as this seems to be an ideal buying opportunity.",
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      "text": "The arithmetic averages were achieved by adding the relative P/E's in each row, where a number was listed, and dividing by the number of years. These are key figures as they were part of the equation in determining each price estimate.",
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      "text": "GS Relative to Competitors, Industry Average, S&P500 table",
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      "text": "E[EPS2007] and Price Estimate table",
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