Goldman Sachs has delivered a strong earnings recovery, with diluted EPS rising to $51.32 in 2025 from $22.87 in 2023, and revenue reaching $125.1 billion. However, the stock trades at an EV/EBITDA of 41.6x, a 249% premium to the peer median of 11.9x, while insiders have been net sellers over the past 24 months, disposing of $314.9 million in shares. Positive technicals and a rising smart-money score of 0.2126 provide near-term support, but the extreme valuation and insider activity warrant a hold rating.
Valuation Contraction
EV/EBITDA of 41.6x is 249% above the peer median of 11.9x; any mean reversion could drive significant price downside.
Insider Selling
Insiders sold a net $314.9 million in shares over 24 months, with the CFO and Chief Legal Officer selling at prices near $970 in May 2026.
Negative Operating Cash Flow
Operating cash flow was -$45.2 billion in 2025 and has been negative for three consecutive years, raising liquidity concerns.
Regulatory/Legal Overhang
The $500 million 1MDB settlement, while resolved, highlights ongoing reputational and regulatory risk.