Goldman’s (GS) business downturn will likely last throughout the remainder of this year and yield a ROE of approximately 6%. The following share prices are banked on ROE normalization back to a certain percentage, as displayed on the horizontal access in the graph below. In other words, these valuations consider short-term performance with long-term regression back to a median ROE figure.GS has produced over 30% ROE in the past, which is not sustainable, and now of course is sputtering along at just 6.34% ROE for my FY2016 projections. Long-term median ROE will be somewhere in the middle of these two figures.The results show that GS must produce ROE’s exceeding its cost of equity in the mid-to-high teen percentages to sustain its current share price. Given I tend to be overly conservative with respect to cost of equity calculations (i.e., demand a higher than average return on investment), the market may be implying closer to a long-term ~15% ROE normalization in reality.