Goldman Stock Valuation

GS -  USA Stock  

USD 389.39  9.80  2.46%

How much is Goldman Sachs Group worth today? Calculating the true value of any business is not as easy as it may seem. While the market cap of a public entity, such as Goldman Sachs, is its stock price multiplied by the total number of shares outstanding, calculating Goldman Sachs' enterprise value requires a different approach. It uses Goldman Sachs' balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
As of 11/29/2021, Free Cash Flow is likely to drop to about (17.5 B). In addition to that, Enterprise Value is likely to drop to about 469.1 B.
Goldman Sachs Group retains a regular Real Value of $416.3 per share. The prevalent price of the firm is $389.39. At this time, the firm appears to be undervalued. Our model calculates the value of Goldman Sachs Group from evaluating the firm fundamentals such as Return On Equity of 20.76 %, current valuation of (185.58 B), and Return On Asset of 1.60 % as well as inspecting its technical indicators and Probability Of Bankruptcy. In general, we encourage buying undervalued assets and selling overvalued assets since, at some point, asset prices and their ongoing real values will come together.

Goldman Valuation 

 
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Goldman Sachs Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as Goldman Sachs's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.
Undervalued
Today
389.39
29th of November 2021
Share
Please note that Goldman Sachs' price fluctuation is very steady at this time. Calculation of the real value of Goldman Sachs Group is based on 3 months time horizon. Increasing Goldman Sachs' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Goldman Sachs Group is useful when determining the fair value of the Goldman stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Goldman Sachs. Since Goldman Sachs is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Goldman Stock. However, Goldman Sachs' intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
350.45
Downside
416.30
Real Value
417.78
Upside
Estimating the potential upside or downside of Goldman Sachs Group helps investors to forecast how Goldman stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Goldman Sachs more accurately as focusing exclusively on Goldman Sachs' fundamentals will not take into account other important factors:
Earnings
Estimates (8)
LowProjected EPSHigh
51.0052.7857.40
Details
Hype
Prediction
LowEstimated ValueHigh
388.61390.09391.57
Details
16 Analysts
Consensus
LowTarget PriceHigh
245.00438.24609.00
Details
Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Goldman Sachs' intrinsic value based on its ongoing forecasts of Goldman Sachs' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Goldman Sachs' closest peers. When choosing an evaluation method for Goldman Sachs Group, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.

Goldman Sachs Investments

852.96 BillionShare

Goldman Valuation Drivers Correlation

Many accounts on the financial statements of Goldman Sachs Group are highly interrelated and sometimes correlated. Consequently, when conducting Goldman's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of Goldman
Click cells to compare fundamentals

Goldman Valuation Trend

Knowing Goldman Sachs' actual value is paramount for traders to make sound investment determinations. Goldman Sachs' real value is not only important for the investor to make better decisions but also for a more accurate overall view of Goldman Sachs' financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Goldman Sachs' enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.

Goldman Market Cap

Goldman Sachs Group is one of the top stocks in market capitalization category among related companies. Market capitalization of Capital Markets industry is currently estimated at about 132.98 Billion. Goldman Sachs totals roughly 132.97 Billion in market capitalization claiming about 100% of stocks in Capital Markets industry.
Capitalization  Revenue  Valuation  Total debt  Workforce

Goldman Sachs Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Goldman Sachs's current stock value. Our valuation model uses many indicators to compare Goldman Sachs value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Goldman Sachs competition to find correlations between indicators driving Goldman Sachs's intrinsic value. More Info.
Goldman Sachs Group is one of the top stocks in price to earning category among related companies. It is one of the top stocks in five year return category among related companies reporting about  0.17  of Five Year Return per Price to Earning. The ratio of Price to Earning to Five Year Return for Goldman Sachs Group is roughly  6.04 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Goldman Sachs by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Goldman Sachs' Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Goldman Sachs' earnings, one of the primary drivers of an investment's value.

About Goldman Sachs Valuation

The equity valuation mechanism determines the current worth of Goldman Sachs Group on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Goldman Sachs Group. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Goldman Sachs Group based exclusively on its fundamental and basic technical indicators. By analyzing Goldman Sachs's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Goldman Sachs's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Goldman Sachs. We calculate exposure to Goldman Sachs's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Goldman Sachs's related companies.
Last ReportedProjected for 2021
Gross Profit44.6 B43.8 B
Profit Margin 0.20  0.22 
The Goldman Sachs Group, Inc., a financial institution, provides range of financial services for corporations, financial institutions, governments, and individuals worldwide. The company was founded in 1869 and is headquartered in New York, New York. Goldman Sachs operates under Capital Markets classification in the United States and is traded on New York Stock Exchange. It employs 40800 people.

Goldman Sachs Quarterly Enterprise Value

604.39 BillionShare
Goldman Sachs' stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Goldman Sachs' value is low or high relative to the company's performance and growth projections. Determining the market value of Goldman Sachs can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of Goldman Sachs represents a small ownership stake in the entity. As a stockholder of Goldman, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.

Goldman Sachs Dividends Analysis For Valuation

As of 11/29/2021, Preferred Dividends Income Statement Impact is likely to drop to about 539.3 M. In addition to that, Payment of Dividends and Other Cash Distributions is likely to drop to about (2.5 B). Goldman Sachs Earning Before Interest and Taxes EBIT is relatively stable at the moment as compared to the past year. Goldman Sachs reported last year Earning Before Interest and Taxes EBIT of 12.48 Billion. As of 11/29/2021, Price to Earnings Ratio is likely to grow to 11.18, while Earnings per Basic Share are likely to drop 22.44.
Last ReportedProjected for 2021
Preferred Dividends Income Statement Impact544 M539.3 M
Payment of Dividends and Other Cash Distributions-2.3 B-2.5 B
Dividend Yield 0.019  0.0181 
Dividends per Basic Common Share 5.00  4.17 
There are various types of dividends Goldman Sachs can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Goldman shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Goldman Sachs Group directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Goldman pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Goldman Sachs by the value of the dividends paid out.

Goldman Sachs Valuation Growth Rates

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Goldman Sachs does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Quick Ratio1.56
Earnings Quarterly Growth1,370.80%
Revenue Growth32.30%
Payout Ratio9.14%
Earnings Growth2,733.90%
Enterprise Value To Revenue-3.36

Goldman Sachs Current Valuation Indicators

Valuation refers to the process of determining the present value of Goldman Sachs Group and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Goldman we look at many different elements of the entity such as Goldman's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Goldman Sachs, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Goldman Sachs' valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Goldman Sachs' worth.
Please check Risk vs Return Analysis. Note that the Goldman Sachs Group information on this page should be used as a complementary analysis to other Goldman Sachs' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Global Correlations module to find global opportunities by holding instruments from different markets.

Complementary Tools for Goldman Stock analysis

When running Goldman Sachs Group price analysis, check to measure Goldman Sachs' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Goldman Sachs is operating at the current time. Most of Goldman Sachs' value examination focuses on studying past and present price action to predict the probability of Goldman Sachs' future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Goldman Sachs' price. Additionally, you may evaluate how the addition of Goldman Sachs to your portfolios can decrease your overall portfolio volatility.
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Is Goldman Sachs' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Goldman Sachs. If investors know Goldman will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Goldman Sachs listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Goldman Sachs Group is measured differently than its book value, which is the value of Goldman that is recorded on the company's balance sheet. Investors also form their own opinion of Goldman Sachs' value that differs from its market value or its book value, called intrinsic value, which is Goldman Sachs' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Goldman Sachs' market value can be influenced by many factors that don't directly affect Goldman Sachs' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Goldman Sachs' value and its price as these two are different measures arrived at by different means. Investors typically determine Goldman Sachs value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Goldman Sachs' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.