Download PDF

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.

Show Full description

1.b. Last Insights on GS

Goldman Sachs' recent momentum is driven by robust growth in investment banking and FICC financing segments, as well as expansion in its Asset & Wealth Management business, particularly in alternative assets. The company's Q3 results beat revenue and EPS estimates, fueled by strong dealmaking and resilient wealth management performance. A favorable regulatory environment and soaring M&A advisory fees also contributed to its solid performance. Additionally, institutional investors such as 1832 Asset Management L.P. and Congress Park Capital LLC have increased their stakes in the company, demonstrating confidence in its prospects.

1.c. Company Highlights

2. Goldman Sachs' Strong Q4 2025 Earnings: A Closer Look

Goldman Sachs reported a strong fourth quarter in 2025, with earnings per share (EPS) of $14.1, slightly above the actual EPS of $14.01, and a return on equity (ROE) of 16%. For the full year, the firm delivered EPS of $51.32, a 27% increase versus last year, and ROE of 15%. The firm's revenues for the year were $41.5 billion in the Global Banking and Markets segment, up 18% amid broad-based strength versus last year. The firm's strategy, set out in 2020, has focused on growing and strengthening the firm, with a 60% increase in firm-wide revenues and a 144% growth in EPS.

Publication Date: Jan -16

📋 Highlights
  • Full-Year EPS Growth: Surged 27% to $51.32 in 2025, with Q4 alone hitting $14.10/share.
  • Global Banking Revenue: Rose 18% to $41.5 Billion, Driven by 25% YOY Investment Banking Fee Growth in Q4.
  • AWM Revenue: Hit Record $11.4 Billion, With Pretax Margin Target Raised to 30% for Medium-Term Returns Exceeding 16%.
  • Dividend Hike: Increased Quarterly Payout to $4.50 (50% YOY), Alongside $32 Billion in Remaining Buyback Capacity.
  • Investment Banking Backlog: Reached Four-Year High in Q4, With Advisory-Driven Activity Fueling Optimism for 2026 Fee Growth.

Segment Performance

The firm's Global Banking and Markets segment produced record revenues, driven by a 25% year-over-year increase in investment banking fees in the fourth quarter. The Asset and Wealth Management (AWM) segment saw significant growth, with more durable revenues reaching a record $11.4 billion for the year and generating returns in excess of 16% in the segment. AWM's pretax margin target was increased to 30%, which will help drive high-teen returns in AWM over the medium term.

Capital Management and Shareholder Returns

The firm announced a $0.50 increase in its quarterly dividend to $4.5, representing a 50% increase from a year ago, and has $32 billion of remaining buyback capacity under its current share repurchase authorization. The firm returned approximately $4.2 billion to common shareholders in the fourth quarter, including $3 billion in common stock repurchases and $1.2 billion in dividends. Its common equity Tier one ratio was 14.4% at the end of the fourth quarter.

Valuation and Outlook

With a Price-to-Tangible Book Value (P/TBV) ratio of around 1.7x (derived from 'P/B Ratio': 168.59, not directly available), Goldman Sachs is trading at a premium. The 'P/E Ratio' of 17.77 and 'P/S Ratio' of 2.36 indicate that the market is pricing in a certain level of growth. Analysts estimate next year's revenue growth at 4.5%. David Solomon expects a constructive environment for M&A and capital markets activity, with a likely scenario of a very good year for 2026. The firm's investment banking backlog rose for a seventh consecutive quarter to a four-year high, driven primarily by advisory.

Growth Opportunities

The firm is optimistic about the investment banking outlook for 2026, with a potential increase in overall capital markets activity. The firm's asset and wealth management business is expected to continue growing, with a target of 5% long-term fee-based wealth asset growth. The firm is also exploring emerging opportunities in market structure, including tokenization and prediction markets.

3. NewsRoom

Card image cap

Trump Tariffs Are Out—But Americans Shouldn't Count On Price Drops, Goldman Sachs Says

09:28

Source: feeds.benzinga.com

Card image cap

Channing Capital Management LLC Has $12.50 Million Stake in The Goldman Sachs Group, Inc. $GS

Feb -22

Source: defenseworld.net

Card image cap

First Look: Amazon tops Walmart; WBD--Netflix saga; oil up

Feb -20

Source: gurufocus.com

Card image cap

First Look: Walmart beat, Meta trial, FDA eyes Moderna

Feb -19

Source: gurufocus.com

Card image cap

Goldman Sachs (GS) Rises Higher Than Market: Key Facts

Feb -18

Source: zacks.com

Card image cap

Goldman Sachs CEO David Solomon, once a crypto skeptic, now says he owns Bitcoin

Feb -18

Source: nypost.com

Card image cap

Goldman Sachs CEO Goes From Bitcoin Skeptic To Owner As Price Falls

Feb -18

Source: forbes.com

Card image cap

Goldman Sachs CEO Solomon calls rule-based system for crypto 'very, very important'

Feb -18

Source: cnbc.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

Stock-Card
Morgan Stanley

A-Score: 6.4/10

Value: 5.1

Growth: 5.7

Quality: 5.8

Yield: 5.0

Momentum: 8.5

Volatility: 8.3

1-Year Total Return ->

View Full Report
Stock-Card
Schwab

A-Score: 6.0/10

Value: 4.3

Growth: 5.3

Quality: 8.4

Yield: 2.0

Momentum: 8.0

Volatility: 8.3

1-Year Total Return ->

View Full Report
Stock-Card
Goldman Sachs

A-Score: 6.0/10

Value: 5.3

Growth: 5.1

Quality: 4.9

Yield: 4.0

Momentum: 8.5

Volatility: 8.3

1-Year Total Return ->

View Full Report
Stock-Card
Raymond James Financial

A-Score: 6.0/10

Value: 5.4

Growth: 7.6

Quality: 7.2

Yield: 2.0

Momentum: 5.0

Volatility: 9.0

1-Year Total Return ->

View Full Report
Stock-Card
Prudential Financial

A-Score: 6.0/10

Value: 7.0

Growth: 3.4

Quality: 5.3

Yield: 8.0

Momentum: 3.0

Volatility: 9.0

1-Year Total Return ->

View Full Report
Stock-Card
Truist

A-Score: 5.7/10

Value: 4.7

Growth: 2.8

Quality: 5.7

Yield: 8.0

Momentum: 5.0

Volatility: 8.0

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

894.82$

Current Price

894.82$

Potential

-0.00%

Expected Cash-Flows