User 136636

Gold Finds Its Mojo After Short, Mild Pullback

Can someone please explain to me why GS doesn't trade at a higher multiple? I know the conventional thinking is that the I banks traded at a discount due to their heavily cyclical nature. However, the I banks are structured much differently now, and that is especially true for GS. GS should trade at a 14-15 multiple I estimate. They are huge players in prime brokerage, asset management, and have been savy in shorting the market at the correct times. In addition, they remain the gold standard in traditional I banking and sales and trading services. Goldman should be trading at a market multiple. In the least they should get a 15xEPS price.