The Goldman Sachs Group, Inc.

New York Stock Exchange
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Slightly Bullish +25

Goldman Sachs (GS) Stock After 50% One-Year Gain And Recent Pullback Is It Time To Pause - simplywall.st

📈 GS stock price closed at $1,019.61, up 50.6% year-to-date but down 7.0% over the past week.

📊 The company has delivered strong long-term returns of 239.1% over three years and 207.6% over five years.

💰 Excess Returns model estimates an intrinsic value of $923.45, implying the current price is 10.4% expensive.

📉 P/E ratio stands at 18.32x, which is below the Capital Markets industry average of 39.58x and peer group average of 30.50x.

🎯 Simply Wall St's Fair Ratio framework estimates a fair P/E of 19.67x, suggesting slight undervaluation on this metric.

🤔 Optimistic community narrative values stock near current price assuming AI efficiency and global wealth growth.

⚠️ Moderate community narrative suggests stock is 9.1% above fair value due to regulatory risks and fee pressure.

📈 Stable EPS is estimated at $66.56 with an average Return on Equity of 17.07% according to analyst consensus.

Bullish Signals
  • GS stock has achieved a massive 50.6% return over the past year and 239.1% over three years, indicating strong investor confidence.
  • The current P/E ratio of 18.32x is significantly lower than the Capital Markets industry average of 39.58x and peer group average of 30.50x.
  • Simply Wall St's Fair Ratio framework estimates a fair P/E of 19.67x, suggesting the stock is slightly undervalued relative to earnings growth expectations.
  • An optimistic community narrative values the stock near current levels, citing AI-driven efficiency gains and fee-based revenue growth from asset management.
Risk Factors
  • The Excess Returns model indicates the stock is currently priced approximately 10.4% above its intrinsic value of $923.45 per share.
  • The company faces potential risks including regulatory pressure, fee compression, and ongoing challenges in talent acquisition.
Full Analysis
Goldman Sachs (GS) stock recently closed at $1,019.61, reflecting a 50.6% gain over the past year despite a 7.0% pullback in the last week. The article analyzes whether this valuation is justified using Simply Wall St's proprietary models, noting that while short-term returns are strong, long-term performance over three and five years has been even more robust at 239.1% and 207.6%, respectively. Using an Excess Returns model based on analyst estimates for book value and return on equity, the stock is currently priced approximately 10.4% above its intrinsic value of $923.45 per share. Conversely, a Price-to-Earnings analysis suggests the stock is slightly undervalued at 18.32x earnings compared to a fair ratio estimate of 19.67x and significantly below the Capital Markets industry average of 39.58x. The article presents two contrasting community narratives regarding future performance. An optimistic view, assuming AI-driven efficiency and wealth growth, values the stock near current levels, while a moderate narrative accounting for regulatory pressures and fee compression suggests the stock is about 9.1% overvalued relative to its fair value of roughly $927.