Highly Regarded

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

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

18% Discount TTM fundamentals · sector averages from covered peers

GS trades at 20.9× TTM earnings — a 18% discount to its Financials sector average of 25.5× in our coverage.

The Numbers

P/E (TTM)

20.9×

Sector avg: 25.5×

P/S (TTM)

5.2×

Sector avg: 9.3×

Market Cap

$307.87B

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 $1026.48 20.9×
BRK.B $504.14 —
V $379.47 —
MA $589.33 37.7×
BAC $61.96 16.9×
MS $213.41 21.9×

Is the Discount Justified?

August 30, 2026

Goldman Sachs Group Inc. trades at a P/E of 21.0x, which is a discount compared to the financial sector average of 24.5x. As a prominent investment bank, Goldman Sachs' performance is closely tied to capital market activity, including M&A volumes and underwriting. The financial sector is broad, encompassing various banking and financial services, some of which may exhibit more stable or higher growth profiles. The current discount could reflect market perceptions of cyclical pressures on investment banking segments, potential regulatory impacts, or a more conservative outlook on its growth trajectory compared to other diversified financial institutions or rapidly expanding fintech companies within the broader sector. Its earnings can be more volatile due to its exposure to capital markets.

Sources

Frequently Asked Questions

Is GS overvalued or undervalued?
On trailing-twelve-month earnings, GS trades at 20.9x versus a Financials sector average of 25.5x in our coverage — a 18.2% 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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