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Wondering whether Goldman Sachs Group is still reasonably priced after a strong run, or if the stock is already baking in too much optimism about the future.
Goldman Sachs Group shares last closed at US$1,096.56, with total returns of 5.9% over 7 days, 18.1% over 30 days, 19.9% year to date, 76.1% over 1 year and 268.1% over 3 years. This track record gives plenty of context for a closer look at value.
Recent headlines around Goldman Sachs Group have largely centred on its role in global capital markets and ongoing commentary about deal activity and client flows. These themes help frame why investors may be reassessing both the growth potential of the business and the risks that come with the current share price.
On Simply Wall St’s valuation checks, Goldman Sachs Group scores 3 out of 6. This sets up a closer look at how different valuation approaches line up for this stock and hints at an even richer way to think about valuation that will be covered at the end of this article.
Approach 1: Goldman Sachs Group Excess Returns Analysis
The Excess Returns model for Goldman Sachs Group looks at how much profit the company is expected to generate over and above the return that equity investors require, and then capitalises those extra profits into an intrinsic value per share.
For Goldman Sachs Group, the model uses a Book Value of US$356.27 per share and a Stable EPS of US$66.19 per share, based on weighted future Return on Equity estimates from 15 analysts. The implied Cost of Equity is US$36.13 per share, which leaves an Excess Return of US$30.07 per share. That excess is then applied to a Stable Book Value of US$390.04 per share, which is based on weighted future Book Value estimates from 12 analysts. The Average Return on Equity across this framework is 16.97%.
Putting these inputs together, the Excess Returns model arrives at an estimated intrinsic value of about US$915.38 per share. Compared with the recent share price of US$1,096.56, this implies the stock is 19.8% above the model’s estimate of fair value, so the shares screen as overvalued on this basis.
Result: OVERVALUED
Our Excess Returns analysis suggests Goldman Sachs Group may be overvalued by 19.8%. Discover 45 high quality undervalued stocks or create your own screener to find better value opportunities.
Story Continues
GS Discounted Cash Flow as at Jun 2026
Approach 2: Goldman Sachs Group Price vs Earnings
For a profitable company like Goldman Sachs Group, the P/E ratio is a straightforward way to see how much investors are paying for each dollar of earnings. A higher P/E typically reflects stronger growth expectations or lower perceived risk, while a lower P/E can point to more muted growth assumptions or higher perceived risk.
Goldman Sachs Group currently trades on a P/E of 19.70x. This sits below the Capital Markets industry average P/E of 40.55x and also below the peer group average of 32.58x, which on simple comparisons might suggest the stock trades on a lower earnings multiple than many competitors.
Simply Wall St’s Fair Ratio for Goldman Sachs Group is 19.73x. This is a proprietary estimate of what the P/E might be given factors such as earnings growth, industry, profit margins, market cap and risk. Because it is tailored to the company’s own fundamentals, it can offer a more targeted anchor than broad industry or peer averages. With the current P/E of 19.70x sitting very close to the Fair Ratio of 19.73x, the shares screen as about fairly valued on this measure.
Result: ABOUT RIGHT
NYSE:GS P/E Ratio as at Jun 2026
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Upgrade Your Decision Making: Choose your Goldman Sachs Group Narrative
Earlier it was mentioned that there is an even better way to understand valuation. Narratives on Simply Wall St let you attach a clear story about Goldman Sachs Group to the numbers by linking your view of its future revenue, earnings and margins to a forecast and then to a fair value that you can compare directly with today’s share price.
Each Narrative lives on the Community page, is easy to use, and updates as new earnings, news or forecasts are added. Instead of just looking at a static P/E, you can see how a cautious view that points to a fair value around US$780 sits against a more optimistic view closer to US$1,050 and the current market price of US$1,096.56, then decide for yourself whether Goldman Sachs Group looks closer to your buy, hold or sell zone.
Do you think there’s more to the story for Goldman Sachs Group? Head over to our Community to see what others are saying!
NYSE:GS 1-Year Stock Price Chart
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include GS.
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