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Is Goldman Sachs Group Inc (GS) Stock Trading Below Fair Value?

Monday, January 24, 2022 02:47 PM | InvestorsObserver Analysts

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Is Goldman Sachs Group Inc (GS) Stock Trading Below Fair Value?

Goldman Sachs Group Inc (GS) receives a strong valuation score of 73 from InvestorsObserver 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 73% 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.

Valuation Rank - 73
GS gets a 73 Valuation Rank today. Find out what this means to you and get the rest of the rankings on GS!

Metrics Analysis

GS's trailing-12-month Price to Earnings (PE) ratio of 5.8 puts it below the historical average of roughly 15. GS is a good value at its current trading price as investors are paying less than what its worth in relation to the company's earnings. GS's trailing-12-month earnings per share (EPS) of 59.36 does justify what it is currently trading at in the market. Trailing PE ratios, however, do not factor in a company's projected growth rate, resulting in some firms having high PE ratios due to high growth potentially enticing investors even if current earnings are low. GS has a 12 month forward PE to Growth (PEG) ratio of 0.67. Markets are overvaluing GS in relation to its projected growth as its PEG ratio is currently above the fair market value of 1. 59.3600006'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's valuation metrics are strong at its current price due to a undervalued PEG ratio due to strong growth. GS's PE and PEG are better than the market average resulting in a above average valuation score. Click Here to get the full Report on Goldman Sachs Group Inc (GS) stock.

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