Goldman Sachs Group's stock (NYSE: GS) has shown a 12% increase since the beginning of 2023, in contrast to the S&P 500 index's 30% rise during the same period. Currently priced at $385 per share, the stock is trading 8% below its estimated fair value of $418, as per Trefis' valuation.
Despite experiencing a robust 45% growth from early January 2021 to its current value, GS stock performance has been volatile. Returns for the stock were 45% in 2021, -10% in 2022, and 12% in 2023, underperforming the S&P 500 in the latter year.
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Goldman Sachs exceeded consensus estimates in Q4 2023, reporting net revenues of $11.32 billion, a 7% year-over-year increase. The growth was primarily driven by gains in platform solutions, asset & wealth management, and equity trading, partially offset by declines in investment banking and FICC trading.
For the full year 2023, the bank's top line decreased by 2% to $46.25 billion, with drops in investment banking and FICC trading revenues offset by growth in equity trading, asset & wealth management, and platform solutions. Adjusted net income decreased by 27% year-over-year to $7.9 billion.
Looking ahead, Goldman Sachs is projected to reach revenues of $50.4 billion in FY2024, with an expected adjusted net income of $11.4 billion. This, combined with an annual GAAP EPS of $34.00 and a P/E multiple slightly above 12x, is anticipated to lead to a valuation of $418.
Despite the challenges posed by the current macroeconomic environment, including high oil prices and elevated interest rates, the bank's performance outlook remains positive for the upcoming year.
