Is Goldman Sachs Stock Fairly Priced?

Is Goldman Sachs Stock Fairly Priced?

Goldman Sachs' stock (NYSE: GS) has lost roughly 19% YTD as compared to the 16% drop in the S&P500 index over the same period. Further, at its current price of $309 per share, it is trading 21% below its fair value of $392 – Trefis' estimate for Goldman Sachs' valuation. The investment bank posted better than expected results in the first quarter, despite a 27% decrease in the net revenues to $12. 9 billion. It was because of an 88% drop in asset management and a 36% decline in the investment banking segment. The asset management division suffered due to net losses in equity investments and lower lending and debt investments revenues. Similarly, the investment banking business was down due to lower underwriting income. That said, the negative growth was partially offset by a 21% jump in the consumer & wealth management segment and a 4% rise in the global market revenues. The consumer & wealth management division benefited from higher Assets under Supervision (AuS) and growth in outstanding loan balances. While the global markets witnessed a 21% rise in the FICC (fixed income, currency & commodity) trading revenues, the positive effect was largely eroded by a 15% decline in