Is The Goldman Sachs Group, Inc. overvalued or undervalued?

As of 13 May 2025, the valuation grade for The Goldman Sachs Group, Inc. has moved from fair to expensive, indicating a shift towards overvaluation. The company currently exhibits a P/E ratio of 36, significantly higher than peers such as Morgan Stanley at 16.79 and CME Group at 26.78. Additionally, Goldman Sachs has an EV to EBITDA ratio of 53.38, which also surpasses many of its competitors, reinforcing the notion of overvaluation.
In terms of key financial metrics, Goldman Sachs shows a Price to Book Value of 4.34 and a PEG ratio of 0.55, which suggests that while growth may be anticipated, the current price does not reflect a favorable valuation compared to its earnings growth. Given these ratios and the comparison with peers, The Goldman Sachs Group, Inc. appears to be overvalued in the current market context. Despite this, the company has shown strong stock performance, with a year-to-date return of 12.97%, outperforming the S&P 500's 2.44% return.