Is Goldman Sachs Group Inc (GS) overvalued?
On Equity Rank's model estimate, GS trades close to its fair value (1% below it). Goldman Sachs Group Inc (GS) last closed at $865.82; the multi-method model fair value is $875.79.
| Price | Model fair value | Price vs model |
|---|---|---|
| $865.82 | $875.79 | 1% below |
What the answer rests on
- 4 of 8 valuation methods put GS's value above its price and 4 put it below, so the methods disagree.
- GS trades at 13.3 times its last year's earnings, against a median of 13.6 for 97 profitable Asset Management companies.
- Over the past year the price sat below the model fair value on 21% of trading days. The gap ranged from 4% below to 44% above the model fair value.
Read this before relying on it
The model fair value is an estimate from published financial statements. It is not a forecast of where the price goes, and it can be wrong. Within 10% either side we call it close to fair value: valuation models are not precise enough to read more into a smaller gap. Our own lists have no proven edge over the market yet; the live record shows every result, misses included.
Every valuation method behind GS's fair value · What prices assume · Other companies