QualityDipStocks / Finance · Brokers & investment banks
Goldman Sachs Group GS
On dip watch: 22% below its 52-week high.
A quality company trading well above our fair value estimate.
- Fair value est.
- $608.48−32%
- Market Value
- $892.93at the price
- Off 52-wk high
- −22%
- Risk vs market
- Highbeta 1.65
5 bullish · 4 bearish See why
Key levels
Every level vs today’s $894.55
- Fair value est.base case$608.48−32.0%
- 52-wk lowlowest close, 1 year$773.70−13.5%
- Market Valueavg paid since Oct 13$892.93−0.2%
- PriceFri Oct 30 close$894.55you are here
- 52-wk highhighest close, 1 year$1,152+28.8%
Fair value estimate
How the range is computed
Financials model (residual income). Same residual-income model as the base: cost of equity 9.5% ±1 point and return on equity 15.7% ±2 points. Bear = 10.5% and 13.7%; bull = 8.5% and 17.7%. A model estimate from public filings, not a forecast of where the price will go.
Price is above even the bull case.
What the price implies To be worth today’s price, GS would need a return on equity of about 23% a year; our estimate uses 16%.
Risk vs market
How risk vs market is measured
One year of daily returns (Oct 30 to Oct 30, 252 sessions). Beta = how much GS moved for each 1% move in the S&P 500 (SPY); 1.0 moves with the market. Volatility is the yearly standard deviation of daily returns. Past behavior, not a forecast.
Swings much more than the market, and its own price swings are 2.5× the S&P 500’s.
- Beta vs S&P 500
- 1.65
- Volatility
- 32% vs 13% SPY
- Correlation SPY
- 0.66
- Correlation QQQ
- 0.59
Bull vs bear
Rule-based from the data on this page, strongest first. Not advice.
Top bullish points 5 of 5
ValuationP/E of 13.0× is 19% below its own average of 16.0× at the last 3 fiscal year-ends.
Cash returnsShare count down 4.2% in a year: $14.0B of buybacks over 12 months.
GrowthSales grew 18% to $66.2B over the last 12 months vs the 12 months before (SEC filings).
GrowthDiluted EPS grew 27% to $51.32 in FY2025.
QualityPasses all four of our quality checks: cash generation, returns on capital, growth and balance sheet.
Top bearish points 4 of 5
ValuationOur residual-income fair value estimate is $608.48, 32% below the price.
ValuationPrice / book of 2.1×, above the 1.8× median for the 143 Finance companies we cover.
GrowthSales grew 7.2% a year over the last three fiscal years, below the 9.3% median for the 144 Finance companies we cover.
RiskSwings hard: beta 1.65 vs the S&P 500 and 32% yearly volatility (SPY 13%).
Who’s talking about it
Notable investors, executives, analysts and public figures on Goldman Sachs Group in the last 48 hours. Headlines as published, each linked. Their words, not ours.
David SolomonChairman & CEO, Goldman SachsCompany
Goldman Sachs CEO David Solomon says the best advice he ever got came from his grandmotherFortune ·
Checked Nov 1, 9:09 PM ET. Matched by name against a maintained list plus the company’s own executives. Information only, not advice.
Compare with peers
Closest in size in Brokers & investment banks
All fundamentals
P/E 13.0 · ROE 16% · Sales +18%
Valuation
- P/E
- 13.0×3-yr-end avg 16.0× · Finance median 13.5×
- Price / FCF
- n/acash flow isn't a clean measure for a bank
- FCF yield
- n/acash flow isn't a clean measure for a bank
- EV / EBITDA
- n/anot meaningful for a bank
- Price / sales
- 3.93×
- Price / book
- 2.12×
- Market cap
- $260Bprice × diluted shares
- Enterprise value
- n/anot reported in its SEC filings
Growth
- Revenue, 12 months
- $66.2Bnet interest income + noninterest income
- Sales growth, 12 months
- +17.8%vs the 12 months before
- Sales growth, 3 yrs
- +7.2%/yrfrom FY2022
- Diluted EPS, 12 months
- $64.76
- EPS growth, last FY
- +26.6%
- Net income, 12 months
- $20.0B
- Net income growth
- +36%12 months vs before
Profitability
- Gross margin
- n/anot meaningful for a bank
- Operating margin
- n/anot reported in its SEC filings
- Net margin
- 30.3%
- FCF margin
- −62.7%
- Return on equity
- 16%
- Return on invested capital
- n/anot meaningful for a bank
Balance sheet
- Cash & short-term inv.
- $187B
- Total debt
- n/anot reported in its SEC filings
- Net cash
- n/anot meaningful for a bank
- Debt / equity
- n/adeposits/float make debt/equity not comparable for a bank
- Interest coverage
- n/anot meaningful for a bank
Cash flow & returns
- Free cash flow, 12 months
- −$41.5B
- FCF growth, 12 months
- n/anot reported in its SEC filings
- Dividend yield
- 2.35%$6.1B paid
- Payout ratio
- 31%
- Buybacks, 12 months
- $14.0B5.4% of market cap
- Share count, 1 year
- −4.2%diluted shares vs a year ago
- Stock-based comp
- $3.5B
Trailing 12 months to Jun 30, 2026; balance sheet at Jun 30, 2026. From Goldman Sachs Group’s SEC filings. Sparklines show up to six fiscal years. n/a means we don’t hold that number, with the reason. How each is computed.
Valuation details
DCF $608.48 · MV $892.93
Financials model (residual income): book value $386.61 a share on Jun 30, 2026 (preferred stock excluded), plus the earnings above a 9.5% cost of equity. ROE 15.7%, the average of 17.9% for the trailing 12 months to Jun 30, 2026 and 13.4% over fiscal 2021–2025, on average common equity; payout 83% of earnings (dividends 31% + net buybacks 53%), so book grows by the retained rest; the return above 9.5% fades halfway toward 9.5% over 10 years, then grows at 3% (terminal value). From the 10-Q filed Aug 3, 2026.
Setup & signals
No setup armed
No setup armed, so there’s no trigger or stop to track yet. We watch it daily for our three reversal signal rules while it sits in a dip.
Momentum & 52-week range
RSI 45 · 5 days +2.2%
The business
FCF $-24.9B · Sales +14%
- Free cash flow, 12 months−$24.9B
- Free-cash-flow yield−9.2%
- Return on equity18%
- Sales growth (latest quarter vs year-ago quarter)+14%
Information only, not investment advice. Fair value estimates and talking points are rule-based model output from public data and can be wrong; stop levels are reference points, not orders. How every number is computed.
Get a text when GS fires a reversal signal
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