Goldman Sachs Group Inc (GS) receives a strong valuation score of 63 from InvestorsObserver's analysis. Our proprietary scoring system considers the overall health of the company by looking at the stock's price, earnings, and growth rate to determine if it represents a good value. GS holds a better value than 63% of stocks at its current price. Investors who are focused on long-term growth through buy-and-hold investing will find the Valuation Rank especially relevant when allocating their assets.
Metrics Analysis
GS has a trailing twelve month Price to Earnings (PE) ratio of 13.3 which places it around the histroical average of roughly 15. GS is currently trading at a average value due to investors paying around what the stock is worth in relation to its earnings. GS's trailing-12-month earnings per share (EPS) of 24.71 does justify its share price in the market. Trailing PE ratios do not factor in the company's projected growth rate, thus, some firms will have high PE ratios caused by high growth recruiting more investors even if the underlying company has produced low earnings so far.
GS has a 12 month forward PE to Growth (PEG) ratio of 0.53. Markets are undervaluing GS in relation to its projected growth as its PEG ratio is currently below the fair market value of 1. 24.709999's PEG comes from its forward price to earnings ratio being divided by its growth rate. PEG ratios are one of the most used valuation metrics due to its incorporation of more company fundamentals metrics and a focus on the firm's future rather than its past.
Summary
GS' has a strong valuation at its current share price on account of a undervalued PEG ratio despite strong growth. GS's PE and PEG are better than the market average leading to a above average valuation score.
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