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

Wednesday, July 06, 2022 12:59 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 ranking of 66 from InvestorsObserver data analysis. The proprietary ranking system focuses on the underlying health of a company through analysis of its stock price, earnings, and growth rate. GS has a better value than 66% of stocks based on these valuation analytics. Investors primarily focused on buy-and-hold strategies will find the valuation ranking relevant to their goals when making investment decisions.

Valuation Rank - 66
GS gets a 66 Valuation Rank today. Find out what this means to you and get the rest of the rankings on GS!

Metrics Analysis

GS has a trailing twelve month Price to Earnings (PE) ratio of 5.8. The historical average of roughly 15 shows a good value for GS stock as investors are paying lower share prices relative to the company's earnings. GS's low trailing PE ratio shows that the firm has been trading below its fair market value recently. Its trailing 12-month earnings per share (EPS) of 51.57 more than justifies the stock's current price. However, trailing PE ratios do not factor in the company's projected growth rate, resulting in many newer firms having high PE ratios due to high growth potential enticing investors despite inadequate earnings.
GS currently has a 12-month-forward-PE-to-Growth (PEG) ratio of 0.64. The market is currently undervaluing GS in relation to its projected growth due to the PEG ratio being below the fair market value of 1. GS's PEG comes from its forward price to earnings ratio being divided by its growth rate. Because PEG ratios include more fundamentals of a company's overall health with additional focus on the future, they are one of the most used valuation metrics by analysts.

Summary

GS' has a strong valuation at its current share price on account of a undervalued PEG ratio due to strong growth. GS's PE and PEG are better than the market average leading to a above average valuation score. Click Here to get the full Report on Goldman Sachs Group Inc (GS) stock.

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