Goldman Sachs or Morgan Stanley: which stock is cheaper in 2026?
As of October 5, 2026, Goldman Sachs (GS) trades at 13.9× earnings (P/E) and Morgan Stanley (MS) at 15.5×, according to Kaplio. The median across the 335 financial services companies above $2bn in Kaplio's universe is 12.9×. Kaplio's verdict: Goldman Sachs, fairly priced; Morgan Stanley, fairly priced. Value range by multiples: $833–$915 for Goldman Sachs and $158–$168 for Morgan Stanley. Against its own value range, Goldman Sachs is the cheaper of the two today.
According to the Kaplio Summary
The same verdict as each company's page: price range by multiples, the four lights, the expected return if consensus is right and what Buffett and Lynch would say today.
| Goldman Sachs (GS) | Morgan Stanley (MS) | |
|---|---|---|
| Summary valuation | fairly priced ($833–$915) | fairly priced ($158–$168) |
| The four lights | Valuation: P/E 13.9× (fairly priced) Business: ROE 13.7 % (fair) Balance sheet: Debt/Equity 6.04 (fragile) Results: 8 of 8 (on track) | Valuation: P/E 15.5× (fairly priced) Business: ROE 15.1 % (passes, near the threshold) Balance sheet: Debt/Equity 4.75 (fragile) Results: 8 of 8 (on track) |
| Expected return (per year) | +11.1 % a year (to 2028) | +5.9 % a year (to 2028) |
| Buffett method | outside his circle | outside his circle |
| Lynch method | asset play · approves | stalwart · would wait |
Metrics side by side
| Metric | Goldman Sachs (GS) | Morgan Stanley (MS) |
|---|---|---|
| Overview | ||
| Market Cap | $266B | $300B |
| Price | $902.56 | $190.31 |
| Valuation | ||
| P/E | 13.9× | 15.5× |
| P/B | 2.2× | 2.7× |
| P/S | 2.2× | 2.4× |
| EV/EBITDA | 26.1× | 22.6× |
| FCF Yield | -15.6 % | -5.2 % |
| Dividend Yield | 2.0 % | 2.2 % |
| Profitability | ||
| ROIC | 2.2 % | 2.1 % |
| ROE | 13.7 % | 15.1 % |
| Gross Margin | 57.3 % | 59.7 % |
| Operating Margin | 24.8 % | 20.7 % |
| Net Margin | 17.8 % | 16.0 % |
| Growth | ||
| Revenue 5Y CAGR | 18.5 % | 18.3 % |
| EPS 5Y CAGR | 15.7 % | 9.6 % |
| FCF 5Y CAGR | — | — |
| Balance Sheet | ||
| Net Debt / EBITDA | 17.7× | 12.4× |
| Debt / Equity | 6.0× | 4.8× |
Trailing twelve months where available; otherwise the latest fiscal year. Growth: five-year compound annual rate.