The Goldman Sachs Group, Inc. (GS) Stock Valuation — PE Analysis
Financial - Capital Markets · NYSE
Current Price
$980.75
PE Ratio (TTM)
14.9x
Intrinsic Value
$1,052.04
+6.8% margin of safety
COMPETITIVE MOAT
↑Global Investment Banking Dominance
Goldman Sachs leverages its extensive global network and deep client relationships to secure and execute complex, high-value transactions. This established reputation attracts top-tier corporate clients.
↑Talent Acquisition and Retention
The firm's ability to attract and retain elite talent in finance is a significant advantage. This human capital drives innovation and client service excellence.
↑Scale and Diversified Business Model
Goldman's broad range of financial services, from investment banking to asset management, creates a diversified revenue stream. This scale allows for cross-selling opportunities and resilience.
INVESTMENT RISKS
↓Market Volatility and Economic Downturns
Goldman's profitability is highly sensitive to fluctuations in global financial markets and broader economic conditions. Downturns can significantly impact deal volumes and asset values.
↓Reputational Damage and Litigation
The firm faces ongoing risks from potential litigation, regulatory investigations, and negative publicity. Such events can erode client trust and financial performance.
↓Interest Rate Sensitivity
Changes in interest rates can impact the firm's net interest income and the valuation of its investment portfolios. This creates earnings uncertainty.
Base case
GS base case PE valuation
A base case PE valuation for GS estimates a fair value of about $1,052.04 per share, against a current price of $980.75. The model assumes 4.4% annual earnings growth, a 14x target PE multiple, and a 10% discount rate.
Intrinsic Value
$1,052.04
Margin of safety
+6.8%
Expected annual return
+1.4%
Base case assumptions: 4.4% annual earnings growth, 14x target PE, 10% discount rate, 5 year projection. Data as of 2026-07-29.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the GS PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for The Goldman Sachs Group, Inc. respond.
Open PE Calculator for GSCompany Overview
The Goldman Sachs Group, Inc. (GS) operates as a prominent global financial services firm, offering an extensive array of services to corporations, financial institutions, governmental bodies, and individuals worldwide. The company's operations are organized into four primary divisions: Investment Banking, Global Markets, Asset Management, and Consumer & Wealth Management. The Investment Banking segment furnishes strategic advisory services covering intricate transactions such as mergers, acquisitions, divestitures, corporate defense strategies, restructurings, and spin-offs. It also extends various lending facilities, including middle-market, relationship, and acquisition financing, in addition to transaction banking services. This division further specializes in underwriting, assisting clients with equity offerings for common, preferred, and convertible securities, as well as debt offerings encompassing investment-grade, high-yield, bank/bridge loans, and emerging market debt instruments, alongside the creation of structured securities. Within its Global Markets division, Goldman Sachs engages in client execution activities for both cash and derivative instruments, provides solutions for credit and interest rate products, and offers comprehensive equity intermediation, financing, clearing, settlement, and custody services. This segment also transacts in products linked to mortgages, foreign exchange, commodities, and equities. The Asset Management segment is responsible for managing assets across a diverse spectrum of classes, including equities, fixed income, hedge funds, credit funds, private equity, real estate, currencies, and commodities. It delivers tailored investment advisory solutions and makes direct investments in corporate entities, real estate ventures, and infrastructure projects. The Consumer & Wealth Management segment provides individual clients with wealth advisory and banking services. These include financial planning, investment management, deposit-taking, and lending. It also offers private banking services, unsecured loans, and accepts savings and time deposits. Founded in 1869, the company's corporate headquarters are located in New York, New York.
Financial Metrics — GS PE Stock Valuation Data
PE Ratio (TTM)
14.9x
PEG Ratio
0.35
Earnings Yield
7.13%
ROE (TTM)
17.0%
Revenue/Share (TTM)
$392.99
Dividend Yield
1.73%
Debt/Equity
6.47x
Frequently Asked Questions
What is the PE ratio of GS?
The trailing twelve-month PE ratio of GS reflects how much investors pay per dollar of The Goldman Sachs Group, Inc.'s earnings. This metric is most useful when compared to Financial - Capital Markets peers and the company's own historical range.
Is GS overvalued based on PE ratio?
GS's PE of 14.9x combined with a PEG ratio of 0.35 provides a growth-adjusted perspective. A PEG below 1.0 means the P/E is low relative to the earnings growth rate. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Financial - Capital Markets, a DCF analysis may be more appropriate.
How do I value GS stock using PE ratio?
To value The Goldman Sachs Group, Inc. using PE: (1) Compare the current PE (14.9x) against the Financial - Capital Markets median to assess relative pricing, (2) check the PEG ratio (0.35) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of GS?
GS's PEG ratio is 0.35, calculated by dividing the PE ratio (14.9x) by the expected earnings growth rate. A PEG below 1.0 means the P/E is low relative to the expected earnings growth rate. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for GS stock valuation?
PE ratio gives a quick relative read — how GS is priced versus Financial - Capital Markets peers. DCF provides an absolute value based on projected free cash flows. For GS, with a strong ROE of 17.0%, both methods are worth using — PE for a market-relative check, DCF to stress-test whether fundamentals justify the price. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See GS DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Financial Services valuationsP/E and DCF value GS with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-07-29. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.