The Goldman Sachs Group, Inc. engages in the provision of financial services. It operates through the following business segments: Global Banking and Markets, Asset and Wealth Management, and Platform Solutions. The Global Banking and Markets segment includes investment banking, global investments, and equity and debt investments. The Asset and Wealth Management segment relates to the direct-to-consumer banking business which includes lending, deposit-taking, and investing. The Platform Solutions segment includes consumer platforms such as partnerships offering credit cards and point-of-sale financing, and transaction banking. The company was founded by Marcus Goldman in 1869 and is headquartered in New York, NY. 

Price Target: We have a 2025 price target for Goldman Sachs at $542, by applying 13x forward PE to 2025 estimated earnings of $41.74/share. The stock has traded at 14x PE when there is optimism about economic growth, which is certainly the case as the Fed starts to cut rates. Additionally, we are expecting the IPO and private equity market to thaw after 2 years of hiatus as a result of high interest rates. 

We also expect 2025 estimates to go up substantially, making our price target a conservative one. A year ago, when expectations of rate cuts were unclear, analysts had 2025 earning estimates at $40.84/share. Now, when rate cuts are almost certain and there are clear signs of the IPO market thawing up, 2025 estimates are at $41.74, only 2.2% higher or virtually unchanged.