Thinking of Investing in GS? What Our Analysts Know.

Goldman Sachs logged a 0.9% change Friday, and is now trading at a price of $341.66 per share.

Goldman Sachs shares moved 6.3% over the last 52 weeks, with a high of $389.58 and a low of $277.84. During this time, the stock outperformed the S&P 500 index by 10.0%. As of January 2022, the company's 50-day average price is $338.0. The Goldman Sachs Group, Inc., a financial institution, provides a range of financial services for corporations, financial institutions, governments, and individuals worldwide. The large-cap Finance company has 48,500 full time employees and is based in New York, NY. Goldman Sachs has not offered any dividends in the last year.

a Flat EPS Growth Trend with Healthy Leverage Levels:

2019-12-31 2020-12-31 2021-12-31 2022-12-31
Revenue (MM) $33,294 $40,419 $59,339 $47,365
Revenue Growth n/a 21.4% 46.81% -20.18%
Net Margins 25.43% 23.4% 36.46% 23.77%
Net Margins Growth n/a -7.98% 55.81% -34.81%
Earnings Per Share $21.03 $24.74 $59.45 $28.08
EPS Growth n/a 17.64% 140.3% -52.77%
Diluted Shares (MM) 375 360 356 334
Free Cash Flow (MM) $15,425 -$20,037 -$3,746 $4,960
FCF Growth n/a -229.9% 81.3% 232.41%
Capital Expenditures (MM) -$8,443 -$6,309 -$4,667 -$3,748
Net Debt / EBITDA 7.33 5.75 1.13 2.79

Goldman Sachs Is Fairly Valued:

Compared to the Finance sector's average of 14.34, Goldman Sachs has a trailing twelve month P/E ratio of 12.2 and, according to its EPS guidance of 38.46, an expected P/E ratio of 8.9. Goldman Sachs's PEG ratio is 0.94 based on its 12.8% compound average growth rate of historical and projected earnings per share. This indicates that the company's shares are undervalued.

Furthermore, Goldman Sachs is likely undervalued in terms of its equity because its P/B ratio is 1.1 compared to its sector average of 1.57. The company's shares are currently trading -28.2% below their Graham number, implying there is a margin of safety for the stock. The Graham number is calculated according to the formula:

√(22.5 * 4-year average EPS * book value per share) = √(22.5 * 33.33 * 302.306) = $476.14

Goldman Sachs Is the Subject of Mixed Market Indicators:

24 analysts are following Goldman Sachs and have set target prices ranging from $330.0 to $470.0 per share. On average, they have given the company a rating of buy. At the current price of $341.66, GS is trading -11.79% away from its average analyst target price of $387.31 per share, implying an analyst consensus of some upside potential for the stock.

The company has a very low short interest since 1.1% of the company's shares are tied to short positions. Institutions own 73.9% of Goldman Sachs's shares, while the insider ownership rate stands at 0.55%. The biggest shareholder is the Vanguard Group, Inc. with a 9% stake in the company worth approximately $10,087,412,526.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.