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

As of 21 July 2025, the valuation grade for The Goldman Sachs Group, Inc. has moved from expensive to very expensive, indicating a significant increase in perceived valuation. The company is currently overvalued, with a P/E ratio of 36, a Price to Book Value of 4.34, and an EV to EBITDA ratio of 53.38. In comparison, Morgan Stanley has a P/E of 18.52, while The Charles Schwab Corp. is valued attractively with a P/E of 25.67, highlighting the premium at which Goldman Sachs is trading relative to its peers.
Despite its high valuation, Goldman Sachs has demonstrated strong stock performance, with a year-to-date return of 40.46%, significantly outpacing the S&P 500's return of 12.22% over the same period. This performance underscores the market's optimism, but the elevated valuation metrics suggest that the stock may not be sustainable at these levels.