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Goldman Sachs Group Inc. (GS) — WACC Analysis

WACC Breakdown

Goldman Sachs Group Inc. (GS) has a weighted average cost of capital (WACC) of 12.7%. The cost of equity is 9.4%, derived from a beta of 1.15 and a risk-free rate of 4.7%. The after-tax cost of debt is 15.6%. The capital structure is 46.5% equity and 53.5% debt.

Interpretation

A WACC of 12.7% indicates that the market perceives Goldman Sachs Group Inc. as higher-risk, requiring a greater return to compensate investors.

Investors can compare GS's WACC of 12.7% against industry peers to gauge its relative financing costs. A beta of 1.15 reflects the stock's volatility relative to the broader market.

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VALUATION

GS WACC: 12.73% for Goldman Sachs Group Inc.

Current inputs imply a 9.39% cost of equity and a 19.78% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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WACC Calculation Process
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Market Data Loaded
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Company Data Fetched
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Beta Calculated (5Y)
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Inputs Auto-Populated
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WACC Calculated
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Step 2: Enter Ticker Symbol
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Step 4: Review Auto-Populated WACC Inputs

Values are automatically populated from real data. You can adjust them manually if needed.

4.30%
1.000
4.23%
5.00%
21.00%
70.00%
Debt: 30.00%Equity: 70.00%

Please enter a valid company ticker to calculate WACC

Goldman Sachs Group Inc. Common Stock (GS) WACC Results
Weighted Average Cost of Capital
12.73%
Cost of Equity
9.39%
Risk-Free Rate4.74%
Beta1.15
Market Risk Premium4.23%
Cost of Debt
15.62%
Pre-Tax Cost of Debt19.78%
Tax Rate21.00%
Tax Shield4.15%
Capital Structure
Equity: 46.51%($302.61B)
Debt: 53.49%($347.96B)
Equity Component
4.37%
46.51% × 9.39%
Debt Component
8.36%
53.49% × 15.62%

Goldman Sachs Group Inc. (GS) WACC in context

Goldman Sachs Group Inc. (GS) currently screens with an estimated WACC of 12.73%. That blends a 9.39% cost of equity, a 19.78% pre-tax cost of debt, and a 46.51% equity weight into the discount rate you would typically use in a DCF model.

screens as a relatively high discount rate, which makes valuation more sensitive to execution and capital structure risk.

What GS WACC implies

A 12.73% discount rate screens as a relatively high discount rate, which makes valuation more sensitive to execution and capital structure risk.

How this page calculates GS

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.15 and equity accounts for 46.51% of capital.

What to do next

Validate business quality on the company page, then carry the same discount-rate assumptions into the DCF page to test fair value sensitivity.

Disclaimer: This is not financial advice. Data sourced from SEC EDGAR and Polygon.io. Past performance does not guarantee future results. Always conduct your own research before making investment decisions.