GS stock verdict - Avoid
- Reasonable forward P/E of 14.5× on analyst estimates
- TTM EPS grew 42.8% year-over-year
- Balance sheet holds net cash (cash exceeds total debt)
- Price is in an uptrend — above key moving averages with positive momentum
- Earnings weakly cash-backed — operating cash flow is only -277% of net income
- Receivables growing 27pp faster than sales — watch for aggressive revenue recognition
- Trades above the model's exit level ($1,056.33) — overvalued on this framework
- High leverage — debt-to-equity of 3.54
- Burns cash — free cash flow is negative
FAQ
Why is GS rated Avoid?
GS (Goldman Sachs Group, Inc. (The)) is rated Avoid because the model combines fundamentals, price action, and earnings-quality checks. The current signal is Overvalued (≥ exit). Reasonable forward P/E of 14.5× on analyst estimates and TTM EPS grew 42.8% year-over-year
Is GS overvalued right now?
GS is trading at $1,061.23 versus an estimated fair value of $880.28. That puts the stock in avoid territory on this framework. Earnings weakly cash-backed — operating cash flow is only -277% of net income and Receivables growing 27pp faster than sales — watch for aggressive revenue recognition
What should I watch before acting on GS?
Watch the trust score of 78, the earnings-quality checks, and any red flags. Earnings weakly cash-backed — operating cash flow is only -277% of net income and Receivables growing 27pp faster than sales — watch for aggressive revenue recognition