Goldman Sachs asset management factor model
What is the Goldman Sachs asset management factor model?
It’s a mathematical profiling technique used by financial analysts to assess the performance and financial health of a company. This kind of factor model is based on data obtained from financial statements.
Where have you heard about the Goldman Sachs asset management factor model?
It’s one of a number of financial modelling techniques used to analyse how a business will react to different economic situations. Goldman Sachs is a well-respected investment bank, which is why many people use its services to help them achieve their investment goals.
What you need to know about the Goldman Sachs asset management factor model.
The Goldman Sachs model uses value, growth and risk in its calculations. It’s a fundamental factor model, which means it uses company and industry characteristics and market data known as ‘factors’ to explain a firm’s historical returns.
However, since the factors of production from the financial statements might be ambiguous, or the data may not be comparable over time, this particular model includes a factor that is based on traditional equity analysis.
Find out more about the Goldman Sachs asset management factor model.
Read our definition of financial risk modelling for more information on assessing risk.