The Goldman Sachs Group, Inc. (GS) Two-Stage Dividend Discount Model - Discounting Cash Flows
GS
The Goldman Sachs Group, Inc.
GS (NYSE)

Estimated Value

USD

Market Price USD

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Two-Stage Dividend Discount Model

Used to estimate the value of companies based on two stages of growth. An initial period of high growth, calculated using [Sum of Discounted Dividends], followed by a period of stable growth, calculated using [Discounted Terminal Value].

Read more: GitHub Documentation

Interactive Assumptions

Discount Rate

Discount Rate

Discount Rate = Cost of Equity = Risk Free Rate + Beta * Market Premium

The cost of equity is the theoretical rate of return that an equity investment should generate. It is calculated using the CAPM formula.

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↳ Beta

Beta

Beta is a value that measures the price fluctuations (volatility) of a stock with respect to fluctuations in the overall stock market.

↳ Risk Free Rate

Risk-Free Rate

The risk-free rate represents the interest an investor would expect from an absolutely risk-free investment over a specified period of time. By default, it is equal to the current yield of the U.S. 10 Year Treasury Bond.

↳ Market Premium

Market Premium

Market risk premium represents the excess returns over the risk-free rate that investors expect for taking on the incremental risks connected to the equities market.

High Growth Years

High Growth Years

The estimated number of years during which the company is expected to experience high growth. After this period, the company will transition to a stable growth phase.

Historical Years

Historical Years

The number of historical years used to calculate averages for historical data.

High Growth Rate

High Growth Rate

The estimated growth rate of Earnings Per Share (EPS) during the high-growth phase.

High Growth Payout

High Growth Payout

The estimated dividend payout rate expressed as a percentage of Earnings Per Share (EPS) during the high-growth phase.

Stable Growth In Perpetuity

Stable Growth in Perpetuity

The estimated stable rate at which the company's Earnings Per Share (EPS) will grow in perpetuity after the last projected period.

Stable Payout

Stable Payout

The estimated dividend payout rate expressed as a percentage of Earnings Per Share (EPS) after the last projected period.

Results

Sum of discounted dividends 51.88 USD
Discounted terminal value 550.1 USD
Terminal value 887.6 USD
Dividend in stable phase 50.51 USD
EPS in stable phase 85.03 USD
Average historical Dividend Growth Rate 16.97%
Average historical Payout Ratio 23.13%
Average historical Return on Equity 10.72%

Historical and Projected Dividends

Monetary values are in USD

Edit Chart Values 2025 2026 2027 2028 2029

amounts of USD except for #

2024 LTM 2025 2026 2027 2028 2029
Earnings Per Share 41.22 43.67 43.53 50.91 59.55 69.66 81.48
Dividend per Share 11.5 12 10.07 11.78 13.77 16.11 18.85
Dividend Growth Rate 9.52% 4.35% -12.45% 16.97% 16.97% 16.97% 16.97%
Discounted Dividend 11.5 12.0 9.15 9.73 10.34 10.99 11.68

amounts of USD except for #

Average LTM 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
Net Income 10,611 14,882 14,276 8,516 11,261 21,635 9,459 8,466 10,459 4,286 7,398 6,083
Equity 102,051 124,300 121,996 116,905 117,189 109,926 95,932 90,265 90,185 82,243 86,893 86,728
Return on Equity 10.71% 12.2% 12.21% 7.27% 10.24% 22.55% 10.48% 9.39% 12.72% 4.93% 8.53% 7.35%
Common Dividends 2,237 3,850 3,773 3,578 3,169 2,278 1,782 1,542 1,214 1,165 1,111 1,145
Payout Ratio 23.13% 27.48% 27.9% 45.55% 29.44% 10.77% 19.99% 19.53% 11.61% 27.67% 15.29% 19.23%
Shares Outstanding 371.2 320.8 328.1 340.8 352.1 350.5 356.4 371.6 385.4 401.6 427.4 448.9
Reference Market Price 340.3 723.7 572.6 385.8 343.4 382.6 263.7 229.9 167.1 254.8 239.4 180.2
EPS 28.45 43.67 41.22 23.05 30.57 60.35 25.01 21.25 27.14 10.48 17 13.26
Dividend per Share 6.35 12 11.5 10.5 9.0 6.5 5.0 4.15 3.15 2.9 2.6 2.55
Dividend Growth Rate 16.97% 4.35% 9.52% 16.67% 38.46% 30% 20.48% 31.75% 8.62% 11.54% 1.96% 13.33%
Dividend Yield 1.81% 1.66% 2.01% 2.72% 2.62% 1.7% 1.9% 1.8% 1.88% 1.14% 1.09% 1.42%
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Discounting Cash Flows

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