Highly Regarded

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

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

In Line TTM fundamentals · sector averages from covered peers

GS trades at 21.4× TTM earnings — roughly in line with its Financials sector average of 24.4×.

The Numbers

P/E (TTM)

21.4×

Sector avg: 24.4×

P/S (TTM)

5.4×

Sector avg: 8.8×

Market Cap

$316.39B

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 $1054.88 21.4×
BRK.B $506.66 —
V $357.21 —
MA $533.36 34.1×
BAC $59.89 16.4×
MS $222.08 22.8×

Is the Multiple Justified?

July 6, 2026

Goldman Sachs Group Inc. trades at a P/E of 21.3x, a slight discount to the Financials sector average of 23.6x. The firm demonstrated solid recent performance, with Q1 2026 net revenues up 14% year-over-year to $17.23 billion and net earnings increasing 19%. The company's net margin for the trailing twelve months was 29.9% as of Q1 FY2026. Analysts project a 10-year compound annual growth of 9.1% in diluted EPS. Goldman Sachs Research anticipates US GDP growth of 2% in H2 2026, partly due to AI-related equity wealth. The slight discount may reflect market considerations regarding the cyclical nature of investment banking, potential regulatory changes, or specific business segment performance relative to the broader, more diversified financial sector.

Sources

Frequently Asked Questions

Is GS overvalued or undervalued?
On trailing-twelve-month earnings, GS trades at 21.4x versus a Financials sector average of 24.4x in our coverage — a 12.2% 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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Same question, Financials peers

BRK.B MA MS V BAC JPM