Goldman Sachs Stock Has A 15% Upside

Goldman Sachs Stock Has A 15% Upside

Goldman Sachs stock (NYSE: GS) has gained 47% YTD, and at its current price of $388 per share, it has an upside potential of 15% to its fair value of $447 – Trefis' estimate for Goldman Sachs' valuation. The bank topped the consensus estimates in the recently released third-quarter results, with total revenues increasing by 26% y-o-y to $13. 6 billion. This could be attributed to an 88% growth in investment banking revenues, followed by a 23% rise in global markets and a 35% jump in the consumer & wealth management segments. This was partially offset by an 18% y-o-y decrease in the asset management business due to lower equity investment revenues. Further, the above growth translated into a 63% y-o-y increase in the adjusted net income to $5. 3 billion. The company's top-line grew 22% y-o-y in 2020 to $44. 6 billion. It was driven by a 24% increase in investment banking revenues due to higher underwriting deal volumes, followed by a 43% jump in global markets (sales & trading) and a 10% rise in the consumer & wealth management segment. The consumer & wealth management benefited from growth in Assets under Supervision (AuS) – AuS increased 10% y-o-y