Using the PEG framework with analyst consensus forward EPS growth of 10.4% plus 2.1% dividend yield, The Goldman Sachs Group, Inc. has a fair value of $605.03 based on NTM EPS (FY2026) of $58.41. The current PEG ratio is 1.36.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG works well for steady growers with predictable earnings.
| EPS Growth RateForward | 8.2% |
| Dividend Yield | +2.1% |
| Adjusted Growth (clamped 8–25%) | 10.4% |
| Fair P/E | 10.4x |
| NTM EPS (FY2026) | $58.41 |
| Fair Value | $605.03 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $51.32 | — | — |
| FY2026E | $58.41 | +13.8% | 15 |
| FY2027E | $65.25 | +11.7% | 15 |
| FY2028E | $71.20 | +9.1% | 10 |
| FY2029E | $70.40 | -1.1% | 5 |
4Y Forward EPS CAGR: 8.2%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $21.6B | $59.45 | — |
| FY2022 | $11.3B | $30.06 | -49.4% |
| FY2023 | $8.5B | $22.87 | -23.9% |
| FY2024 | $14.3B | $40.54 | +77.3% |
| FY2025 | $17.2B | $51.32 | +26.6% |
4Y Historical EPS CAGR: -3.6%
The PEG Fair Value uses the Price/Earnings-to-Growth framework. A stock is fairly valued when its P/E ratio equals its earnings growth rate (PEG = 1.0). This model adds dividend yield to the growth rate per the original PEGY formula.
Growth rate priority: analyst consensus forward EPS CAGR (when ≥ 3 analysts cover the stock), falling back to historical EPS CAGR. Using EPS rather than net income avoids distortion from share buybacks. The growth rate is clamped between 8% and 25% — below 8% would undervalue stable earners, while above 25% would overvalue unsustainable spikes.