Goldman Sachs: A Solid Hold Right At Fair Value Threshold
By stockpickr AI | March 2, 2026 | 10 min read
Investment Summary
Goldman Sachs (Financial Services) appears to be fairly valued based on the DCF analysis, suggesting the current market price is close to its intrinsic value.
Investment Recommendation
Hold
Fair Value: $395.50
Current Price: $392.60
Upside/Downside: +0.74%
The DCF analysis suggests a fair value per share near the current trading price ($392.60). While GS has a strong market position, the recent deceleration in revenue growth and inherent cyclicality temper the upside potential, signaling that the market is currently pricing the stock accurately.
Key Metrics
- Market Cap: $137.26B
- P/E Ratio: 13.72x
- Forward P/E: 11.75x
- Revenue Growth (YoY): -10.01%
- Net Margin: 14.17%
- ROE: 10.20%
- Debt/Equity: 2.65
- Dividend Yield: 1.58%
Strengths
- Dominant global investment banking franchise with high-margin advisory fees.
- Strong growth in Asset & Wealth Management generates stable recurring revenue (AUM of approximately $2.8 trillion).
- Robust balance sheet position with a strong capital buffer (CET1 ratio of 14.4% as of Q1 2024).
- Reputation as a market leader, attracting the most significant corporate deals.
Risk Factors
- High exposure to cyclical capital markets, leading to inconsistent revenue streams (Net Revenues declined 10.01% YoY in Q1 2024).
- Significant regulatory oversight and potential for large fines or compliance costs.
- High leverage (Debt-to-Equity of 2.65) magnifies potential losses during market downturns.