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1. Company Snapshot

1.a. Company Description

The Goldman Sachs Group, Inc., a financial institution, provides a range of financial services for corporations, financial institutions, governments, and individuals worldwide.It operates through four segments: Investment Banking, Global Markets, Asset Management, and Consumer & Wealth Management.The company's Investment Banking segment provides financial advisory services, including strategic advisory assignments related to mergers and acquisitions, divestitures, corporate defense activities, restructurings, and spin-offs; and middle-market lending, relationship lending, and acquisition financing, as well as transaction banking services.


This segment also offers underwriting services, such as equity underwriting for common and preferred stock and convertible and exchangeable securities; and debt underwriting for various types of debt instruments, including investment-grade and high-yield debt, bank and bridge loans, and emerging-and growth-market debt, as well as originates structured securities.Its Global Markets segment is involved in client execution activities for cash and derivative instruments; credit and interest rate products; and provision of equity intermediation and equity financing, clearing, settlement, and custody services, as well as mortgages, currencies, commodities, and equities related products.The company's Asset Management segment manages assets across various classes, including equity, fixed income, hedge funds, credit funds, private equity, real estate, currencies, and commodities; and provides customized investment advisory solutions, as well as invests in corporate, real estate, and infrastructure entities.


Its Consumer & Wealth Management segment offers wealth advisory and banking services, including financial planning, investment management, deposit taking, and lending; private banking; and unsecured loans, as well as accepts saving and time deposits.The company was founded in 1869 and is headquartered in New York, New York.

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1.b. Last Insights on GS

Goldman Sachs' recent performance was driven by a solid Q2 earnings beat, with strong investment banking and record equities trading driving 15% revenue growth. The company's strategic shift, focusing on high-growth segments such as investment banking and asset management, is boosting growth and operational efficiency. A 33.3% dividend hike and plans for share buybacks, following the successful stress test, are enhancing shareholder returns. M&A and IPO rebounds are also bolstering long-term strength. (Source: various recent news articles)

1.c. Company Highlights

2. Goldman Sachs' Q3 2025 Earnings: Strong Performance Across Key Businesses

Goldman Sachs reported robust financial performance for the third quarter of 2025, with net revenues reaching $15.2 billion, earnings per share (EPS) of $12.25, and a return on equity (ROE) of 14.2%. The EPS figure significantly exceeded analyst estimates of $11.03. The strong performance was driven by the firm's market-leading franchises, particularly in investment banking, where it advised on over $1 trillion in announced M&A volumes year to date. The company's markets businesses also demonstrated resilience, with FICC and equities businesses rising year-over-year for the seventh consecutive quarter.

Publication Date: Oct -16

📋 Highlights
  • Strong Financial Performance:: Net revenues reached $15.2 billion, with EPS of $12.25 and ROE of 14.2%, driven by robust investment banking and markets segments.
  • Investment Banking Milestones:: Advised on over $1 trillion in M&A year-to-date, including landmark deals like the $55 billion EA sale and Baker Hughes' $14 billion acquisition of Chart Industries.
  • Markets Resilience:: FICC and equities net revenues rose 17% and 11% YoY to $3.5 billion and $3.7 billion, respectively, marking seven consecutive quarters of growth.
  • Asset & Wealth Management Growth:: Revenues hit $4.4 billion, with management fees at a record $2.9 billion and assets under supervision reaching $3.5 trillion.
  • Strategic AI-Driven Transformation:: Launching One Goldman Sachs 3.0 to enhance efficiency, targeting mid-teens ROE and a CET1 ratio of 14.4% amid $3.3 billion shareholder returns.

Segment Performance

The firm's Global Banking & Markets segment produced revenues of $10.1 billion, with advisory revenues up 60% year-over-year. FICC net revenues were $3.5 billion, up 17% year-over-year, while equities net revenues were $3.7 billion. The Asset and Wealth Management (AWM) segment also performed well, with revenues of $4.4 billion and management and other fees at a record $2.9 billion. Assets under supervision reached a record $3.5 trillion, driven by strong fundraising and growth in the alternatives business.

Operational Efficiency and Growth Initiatives

The company is launching "One Goldman Sachs 3.0," a new operating model driven by AI, aimed at enhancing client experience, improving profitability, and driving productivity and efficiency. This initiative is expected to create capacity for future growth and is not related to current performance, which is strong, but rather a way to improve the firm's execution and growth prospects. The firm's CEO, David Solomon, highlighted the importance of using technology to automate, drive scale, and create efficiency, allowing for more investment in growth.

Valuation and Return Metrics

With a P/E Ratio of 14.26 and a P/TBV of approximately 1.92 (using the P/B Ratio as a proxy), Goldman Sachs' valuation appears reasonable relative to its historical averages and peers. The firm's ROE of 14.2% is also attractive, indicating strong profitability. The Dividend Yield stands at 1.69%, providing a relatively stable return to shareholders. Analysts estimate next year's revenue growth at 5.9%, which, combined with the current valuation metrics, suggests that the stock may be poised for further growth.

Risk Management and Regulatory Outlook

Goldman Sachs has a diversified book of lending exposure, primarily collateralized and investment-grade rated, and maintains a strong risk management culture and underwriting standards. The firm's CEO expects real progress on regulatory changes, including clarity on the G-SIB surcharge and Basel III endgame by 2026, which is likely to improve Goldman Sachs' competitive position. The firm's capital position remains strong, with a common equity tier 1 ratio of 14.4%, well above the regulatory requirement.

3. NewsRoom

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Willow Wealth Expands Private Markets Platform With Launch of Evergreen Funds From Carlyle, Goldman Sachs Asset Management, and StepStone

Dec -04

Source: businesswire.com

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Copper's $11,540 Shock: Why Goldman Says the Red‑Hot Rally Could Be Running on Fumes

Dec -04

Source: gurufocus.com

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1832 Asset Management L.P. Boosts Stock Holdings in The Goldman Sachs Group, Inc. $GS

Dec -03

Source: defenseworld.net

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Market Today: Deal Talks, Retail Wins, AI Chips, and Crypto Volatility

Dec -02

Source: gurufocus.com

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Goldman to Expand ETF Footprint With the Buyout of Innovator Capital

Dec -02

Source: zacks.com

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Goldman Sachs: Not Considered Overvalued After Factoring Total Shareholder Returns

Dec -02

Source: seekingalpha.com

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First Look: Versace deal, crypto slump, WBD bids and Airbus woes

Dec -02

Source: gurufocus.com

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Market Today: Crypto Rout, Omnicom Cuts, Nvidia--Synopsys Deal

Dec -01

Source: gurufocus.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.30%)

6. Segments

Global Banking & Markets

Expected Growth: 5.0%

The segment is likely to grow faster than the global average due to increasing demand for corporate financing and risk management solutions. Goldman Sachs' strong market position and expertise in this area will drive growth.

Asset & Wealth Management

Expected Growth: 4.5%

The segment is expected to grow in line with the global average, driven by increasing demand for wealth management and investment services. Goldman Sachs' strong brand and expertise in this area will support growth.

Platform Solutions

Expected Growth: 4.3%

The segment is expected to grow in line with the global average, driven by increasing demand for technology and operational efficiency. Goldman Sachs' investment in this area will support growth.

7. Detailed Products

Investment Banking

Goldman Sachs provides strategic advisory services to corporations, partnerships, institutions, and governments, including mergers and acquisitions, divestitures, and restructuring.

Global Markets

Goldman Sachs provides sales, trading, and market-making services in fixed income, currencies, commodities, and equities to institutional clients.

Asset Management

Goldman Sachs provides investment management services to institutional clients, including pension funds, endowments, and sovereign wealth funds.

Consumer & Wealth Management

Goldman Sachs provides wealth management services to high-net-worth individuals, including investment advice, portfolio management, and lending.

Transaction Banking

Goldman Sachs provides cash management and treasury services to corporations and financial institutions.

8. The Goldman Sachs Group, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Goldman Sachs' investment banking and asset management services have few substitutes, but the company faces competition from other financial institutions and fintech companies.

Bargaining Power Of Customers

Goldman Sachs' customers, including corporations and high-net-worth individuals, have limited bargaining power due to the company's strong brand and diversified services.

Bargaining Power Of Suppliers

Goldman Sachs has a strong negotiating position with its suppliers, including technology vendors and consultants, due to its large scale and diversified operations.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the investment banking and asset management industries, including regulatory hurdles and the need for significant capital investments.

Intensity Of Rivalry

The investment banking and asset management industries are highly competitive, with many established players competing for market share and clients.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 84.59%
Debt Cost 10.91%
Equity Weight 15.41%
Equity Cost 10.91%
WACC 10.91%
Leverage 548.84%

11. Quality Control: The Goldman Sachs Group, Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Morgan Stanley

A-Score: 6.3/10

Value: 5.0

Growth: 5.8

Quality: 5.8

Yield: 5.0

Momentum: 8.5

Volatility: 8.0

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Schwab

A-Score: 6.2/10

Value: 4.4

Growth: 5.3

Quality: 8.1

Yield: 2.0

Momentum: 8.5

Volatility: 8.7

1-Year Total Return ->

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Raymond James Financial

A-Score: 6.1/10

Value: 4.2

Growth: 5.6

Quality: 8.1

Yield: 2.0

Momentum: 8.0

Volatility: 9.0

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Goldman Sachs

A-Score: 6.0/10

Value: 5.2

Growth: 5.1

Quality: 4.9

Yield: 4.0

Momentum: 8.5

Volatility: 8.3

1-Year Total Return ->

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Truist

A-Score: 5.8/10

Value: 4.8

Growth: 2.8

Quality: 5.5

Yield: 8.0

Momentum: 6.0

Volatility: 8.0

1-Year Total Return ->

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Prudential Financial

A-Score: 5.5/10

Value: 5.7

Growth: 3.4

Quality: 4.9

Yield: 8.0

Momentum: 2.0

Volatility: 9.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

854.56$

Current Price

854.56$

Potential

-0.00%

Expected Cash-Flows