Key Stats for Goldman Sachs Stock
- Current Price: $893.46
- Target Price (Mid): ~$1,096
- Street Target: ~$1,097
- Potential Total Return: ~23%
- Annualized IRR: ~5% / year
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What Happened?
CEO David Solomon of The Goldman Sachs Group (GS) told a Barclays conference on September 16, listed in Goldman’s investor relations materials, that the firm isn’t yet ready to raise its 14% to 16% through-the-cycle return on equity (ROE) target. ROE is the profit made on shareholders’ capital. Goldman’s ran at an annualized 23.5% in the second quarter and 21.7% for the first half of 2026, according to its second-quarter results. With shares at $893.46 on October 5, the October 13 report will test which number the stock should price.
The Target Solomon Kept, and What 2.44x Book Prices In
Barclays analyst Jason Goldberg noted that Goldman has been running well above the target, which it set in February 2022 and reaffirmed at its February 2023 Investor Day. Solomon said that in the current environment, Goldman is “going to earn ahead of our targets” and has “significantly uplifted the base returns.” He still held the line: “If over time, we have confidence that the through-the-cycle returns are going to be consistently higher, we’ll address it. But we’re not at that point now.”
The caution has a record behind it. Full-year ROE was 15.0% in 2025 and 12.7% in 2024, inside and below the band.
A stock’s price-to-book multiple (share price divided by book value per share) equals its P/E ratio times its ROE. At Goldman’s 2.44x book, a 15% ROE (the target’s midpoint) works out to about 16x earnings, and a 19% ROE to about 13x. The stock trades around 13x forward normalized earnings. Measured against the trailing book, the price already assumes high-teens returns over the next year.
TIKR consensus keeps ROE near 19% through 2028. It then falls to around 14.5% in 2029 and around 16% in 2030, years covered by a single revenue analyst. The multiple has fallen from 2.81x on June 30. On September 16, shares fell almost 4%, underperforming bank stocks that also slid after the Federal Reserve’s rate hike, Reuters reported.
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Where a Higher Floor Could Come From
Solomon pointed to Asset & Wealth Management, where Goldman has “talked about our ability to drive 30% margins in that business and high teens returns.” Segment revenue rose 20% year over year to $4.60 billion in the second quarter. He also expects “more and more pricing power over time” in financing, while warning that its growth will not be a straight line.
Capital return helps the ratio. Solomon said the dividend has gone from $0.80 a quarter to $5, and that returning unused capital “helps returns the next year.” Goldman bought back stock worth $4.00 billion in the second quarter.
The near-term flags cut the other way: a “much more muted” third quarter on the investments line, provisions slightly above a year earlier, and higher non-compensation costs. Of the 25 analysts TIKR tracks, 16 rate the stock a Hold.
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TIKR Advanced Model Analysis
- Current Price: $893.46
- Target Price (Mid): ~$1,096
- Potential Total Return: ~23%
- Annualized IRR: ~5% / year
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The mid case reaches around $1,096 by December 31, 2030, a total return of around 23%, or around 5% a year from $893.46. The model’s 2025-to-2035 forecast table assumes revenue growth near 3% a year and a net income margin around 27.5%. That margin is below 2025’s 28.0%, and the around 29% consensus expects for 2026. The table also assumes a P/E that shrinks around 2% a year. Upside comes if ROE holds near 19% and the multiple stops shrinking. The downside is a repeat of the third quarter of 2025, when ROE was 14.2%.
Conclusion
Goldman reports before the open on October 13. Consensus GAAP EPS of around $14 annualizes to roughly 15% of the $367.67 June 30 book value per share, the middle of the target. An ROE near 18%, despite softer fixed income and higher costs, would support a higher floor. A print at 15% or below would back Solomon’s caution, and the 2.44x multiple with it.
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So what is Goldman Sachs stock actually worth?
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
