GSK plc

XTRA:GS71 Stock Report

Market Cap: €65.7b

GSK Valuation

Is GS71 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of GS71 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: GS71 (€16.22) is trading below our estimate of fair value (€64.18)

Significantly Below Fair Value: GS71 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for GS71?

Key metric: As GS71 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for GS71. This is calculated by dividing GS71's market cap by their current earnings.
What is GS71's PE Ratio?
PE Ratio21.8x
EarningsUK£2.51b
Market CapUK£54.66b

Price to Earnings Ratio vs Peers

How does GS71's PE Ratio compare to its peers?

The above table shows the PE ratio for GS71 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average22.7x
MRK Merck KGaA
22.2x11.1%€59.9b
DMP Dermapharm Holding
22.5x17.0%€2.0b
PSG PharmaSGP Holding
15.3x13.6%€287.8m
ZTS Zoetis
30.7x10.0%US$74.3b
GS71 GSK
21.8x23.2%€54.7b

Price-To-Earnings vs Peers: GS71 is good value based on its Price-To-Earnings Ratio (21.8x) compared to the peer average (22.7x).

Price to Earnings Ratio vs Industry

How does GS71's PE Ratio compare vs other companies in the European Pharmaceuticals Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
GS71 21.8xIndustry Avg. 19.5xNo. of Companies11PE01632486480+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: GS71 is expensive based on its Price-To-Earnings Ratio (21.8x) compared to the European Pharmaceuticals industry average (19.5x).

Price to Earnings Ratio vs Fair Ratio

What is GS71's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

GS71 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio21.8x
Fair PE Ratio27.2x

Price-To-Earnings vs Fair Ratio: GS71 is good value based on its Price-To-Earnings Ratio (21.8x) compared to the estimated Fair Price-To-Earnings Ratio (27.2x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst GS71 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€16.22
€21.90
+35.0%
29.3%€41.92€14.34n/a18
Dec ’25€16.19
€21.94
+35.5%
29.0%€41.75€14.28n/a18
Nov ’25€17.14
€22.80
+33.0%
26.8%€41.48€16.93n/a18
Oct ’25€18.32
€23.68
+29.2%
24.2%€41.74€17.04n/a20
Sep ’25€19.71
€22.98
+16.6%
23.4%€40.62€16.58n/a21
Aug ’25€18.08
€23.29
+28.8%
22.8%€41.08€16.77n/a21
Jul ’25€18.01
€23.95
+33.0%
20.6%€41.08€16.77n/a22
Jun ’25€20.71
€23.82
+15.0%
21.9%€40.90€14.11n/a21
May ’25€19.54
€23.51
+20.3%
22.5%€40.65€14.02n/a20
Apr ’25€20.01
€23.23
+16.1%
23.5%€40.64€14.02n/a21
Mar ’25€19.40
€22.81
+17.6%
24.6%€40.67€14.03n/a20
Feb ’25€18.58
€22.17
+19.3%
25.6%€40.80€14.07n/a20
Jan ’25€16.73
€19.97
+19.3%
20.7%€29.31€13.90n/a19
Dec ’24€16.66
€19.79
+18.8%
20.8%€29.04€13.66€16.1919
Nov ’24€16.45
€20.03
+21.8%
20.6%€28.99€13.80€17.1419
Oct ’24€17.31
€19.75
+14.1%
20.8%€28.38€13.72€18.3219
Sep ’24€16.29
€19.69
+20.9%
22.1%€30.39€13.80€19.7120
Aug ’24€16.02
€19.88
+24.1%
21.6%€30.58€13.89€18.0820
Jul ’24€16.11
€20.03
+24.3%
20.9%€30.60€12.96€18.0120
Jun ’24€15.69
€19.72
+25.7%
20.9%€30.12€12.75€20.7120
May ’24€16.47
€19.40
+17.7%
20.8%€29.68€12.57€19.5420
Apr ’24€16.24
€19.51
+20.1%
20.6%€29.83€12.63€20.0120
Mar ’24€15.98
€19.56
+22.4%
21.3%€29.79€12.61€19.4021
Feb ’24€16.18
€19.17
+18.5%
21.4%€28.95€12.50€18.5820
Jan ’24€16.46
€19.81
+20.4%
21.1%€29.90€12.91€16.7320
Dec ’23€16.64
€19.89
+19.5%
20.9%€29.89€12.91€16.6620

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/27 12:33
End of Day Share Price 2024/12/23 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

GSK plc is covered by 62 analysts. 18 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Kamla SinghAlphaValue
John EadeArgus Research Company
Odile RundquistBaader Helvea Equity Research