| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 362.30 | -54 |
| Intrinsic value (DCF) | 195.94 | -75 |
| Graham-Dodd Method | 316.80 | -60 |
| Graham Formula | 969.30 | 24 |
The Goldman Sachs Group, Inc. (GOS.DE) is a leading global financial institution headquartered in New York, offering a comprehensive suite of financial services to corporations, financial institutions, governments, and individuals. Operating through four key segments—Investment Banking, Global Markets, Asset Management, and Consumer & Wealth Management—Goldman Sachs excels in advisory, underwriting, trading, and asset management services. The company's Investment Banking segment is renowned for its expertise in mergers and acquisitions, capital raising, and strategic advisory, while its Global Markets division provides liquidity and risk management solutions across equities, fixed income, currencies, and commodities. The Asset Management segment manages diverse portfolios, including private equity and real estate, and the Consumer & Wealth Management segment offers tailored wealth solutions. With a storied history dating back to 1869, Goldman Sachs remains a dominant force in the financial services sector, leveraging its global reach, deep industry expertise, and innovative financial solutions to maintain a competitive edge in capital markets.
Goldman Sachs presents a compelling investment case due to its strong market position, diversified revenue streams, and robust financial performance. With a market capitalization of approximately €161.67 billion and a diluted EPS of €40.54, the company demonstrates solid profitability. However, investors should note the high beta of 1.311, indicating higher volatility relative to the market. The negative operating cash flow of €-13.21 billion and significant total debt of €342.56 billion raise concerns about liquidity and leverage. Nonetheless, Goldman Sachs' leadership in investment banking and asset management, combined with its global footprint, positions it well for long-term growth. The dividend yield, supported by a dividend per share of €10.96, adds to its attractiveness for income-focused investors.
Goldman Sachs maintains a competitive advantage through its unparalleled brand reputation, extensive global network, and deep client relationships. Its Investment Banking segment is a market leader, often securing high-profile advisory and underwriting mandates. The Global Markets division benefits from strong trading capabilities and risk management expertise, while Asset Management leverages its diversified product offerings to attract institutional and high-net-worth clients. Consumer & Wealth Management is expanding its digital platforms to enhance client engagement. However, the company faces intense competition from other bulge-bracket banks, which also offer comprehensive financial services. Regulatory scrutiny and market volatility pose additional challenges. Goldman Sachs' ability to innovate and adapt to changing market conditions, such as the shift towards sustainable finance and digital assets, will be critical in maintaining its leadership position.