Goldman Sachs stock price could have become quite overpriced and riskier to hold as the intraday valuation has peaked at $401,7 dollars per share. The chart below on a daily time scale highlights four major price/volume gap structures in the GS stock price, that makes the stock quite overextended and riskier from a chart technical standpoint, considering that the GS trendline has stretched above the Bollinger Band upper edge band, while the RSI oscillator signal once more an overbought stock price.
Some GS stock metrics could be challenged as the 2020 Diluted/EPS 22.12 makes Goldman Sachs makes stocks multiple already much higher and expensive than market consensus, the bank balance sheet posts a $1.15Trillion dollars in total assets, Total liabilities $1.05 Trillion dollars, making a sort of net position of $100 Billion dollars, important to discern that Goldman Sachs balance sheet customers deposits liabilities amount to $280,5 Billion dollars; as since 2016 Goldman Sachs has aggressively increased the amounts of the bank’s investments to $947.6 billion dollars as of June 2021, that would make somewhat the risk profile and leverage of the bank balance sheet riskier and sensible to the covariance of volatility across markets and assets.
other important ratios as Tangible Book Value/Share $287,7 dollars Book value/Share $302 dollars also signal to equity investors that Goldman stock price valuation has been somewhat inflated and that a correction in the stock price could become one of the possible outcomes. The Goldman Sachs stock metric Value at Risk, on a daily 2009 dollar chained data set, elaborates a Var95 of -2,9% drawdown, a VaR99 of -5,27% drawdown, meanwhile same range CVaR95 and CVaR99 have a drawdown range of -4,6%<-8,0%.
With the chart on a daily time scale probability of a peaking stock price and a correction in Goldman stock price valuation could eventually materialize where a support area GS $ 275 share price would be in the range of the Tangible Book Value/Share $287,7 share price.