Highly Regarded

Is Goldman Sachs Group Inc. (GS) Stock Undervalued or Overvalued?

Trailing-twelve-month multiples vs Financials sector peers in our coverage

25% Discount TTM fundamentals · sector averages from covered peers

GS trades at 18.1× TTM earnings — a 25% discount to its Financials sector average of 24.1× in our coverage.

The Numbers

P/E (TTM)

18.1×

Sector avg: 24.1×

P/S (TTM)

4.6×

Sector avg: 9.3×

Market Cap

$267.34B

EPS (TTM): $49.22

Revenue (TTM)

$58.70B

Net income: $16.67B

Financials Peer Comparison

How GS's multiples stack up against sector peers we cover. Click any peer for its own valuation breakdown.

Stock Price P/E (TTM)
GS This page $891.33 18.1×
BRK.B $525.88 —
V $399.62 —
MA $616.27 39.4×
BAC $51.74 14.1×
MS $182.10 18.7×

Is the Discount Justified?

October 11, 2026

Goldman Sachs Group Inc.'s P/E of 18.2x trades at a discount to the financial sector average of 22.5x. This valuation comes despite recent strong performance in key segments. The firm's third-quarter results highlighted a significant 42% year-over-year increase in investment banking fees and resilient trading activity. Assets under supervision reached a record $3.5 trillion, demonstrating strength in its asset and wealth management franchises. Goldman Sachs' fourth-quarter earnings also exceeded analysts' forecasts, overcoming previous losses from its consumer-focused Platform Solutions unit. Analysts anticipate Goldman Sachs to be a leading performer in equities trading for the third quarter, with projected stock-trading revenue of $5.1 billion. The company's strategic focus on investment banking and asset management, alongside a consistent dividend growth track record, are key factors for investors.

Sources

Frequently Asked Questions

Is GS overvalued or undervalued?
On trailing-twelve-month earnings, GS trades at 18.1x versus a Financials sector average of 24.1x in our coverage — a 24.8% discount. Whether that's justified depends on growth, margins, and risk; see the context above.
What does the P/E ratio tell you?
Price-to-earnings compares a company's share price with its per-share profits. A higher multiple means investors pay more per dollar of earnings — often for faster expected growth — while a lower one can signal slower growth or higher perceived risk.
Why compare against the sector average?
Valuation multiples vary structurally between industries — software typically trades richer than banks or energy. Comparing GS with its own Financials peers is more informative than comparing against the whole market.
Is a cheap stock automatically a good buy?
No. A discount can be justified by weak growth or elevated risk (a "value trap"), and a premium can be earned by quality and consistency. Valuation is one input — pair it with the fundamentals and the AI context on this page.

Methodology

Multiples are computed from trailing-twelve-month fundamentals (from company filings) and the latest share price: P/E is price ÷ diluted EPS, and P/S is market cap ÷ revenue. Sector averages use the Financials names in our 50-stock coverage with positive earnings — a deliberately like-for-like, if imperfect, benchmark.

Stocks with negative trailing earnings are compared on price-to-sales instead. Multiples update with prices and fundamentals; AI context refreshes weekly.

Not Financial Advice

This page is for education and information only. Indicators are mechanical calculations, AI commentary can contain errors, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a qualified financial advisor. See our full disclaimer.

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Same question, Financials peers

V BAC MA BRK.B MS JPM