GSK plc

BATS-CHIXE:GSKL Stock Report

Market Cap: UK£53.9b

GSK Valuation

Is GSKL 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 GSKL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: GSKL (£13.23) is trading below our estimate of fair value (£50.43)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for GSKL. This is calculated by dividing GSKL's market cap by their current earnings.
What is GSKL's PE Ratio?
PE Ratio21.5x
EarningsUK£2.51b
Market CapUK£53.86b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for GSKL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average27.9x
AZN AstraZeneca
30.8x18.2%UK£159.0b
HIK Hikma Pharmaceuticals
19.1x12.2%UK£4.3b
ANCR Animalcare Group
30.9x5.3%UK£143.1m
ZTS Zoetis
30.6x10.0%US$74.4b
GSKL GSK
21.5x23.2%UK£53.9b

Price-To-Earnings vs Peers: GSKL is good value based on its Price-To-Earnings Ratio (21.5x) compared to the peer average (27.9x).

Price to Earnings Ratio vs Industry

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

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
No. of Companies11PE01632486480+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: GSKL is expensive based on its Price-To-Earnings Ratio (21.5x) compared to the European Pharmaceuticals industry average (19.3x).

Price to Earnings Ratio vs Fair Ratio

What is GSKL'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.

GSKL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio21.5x
Fair PE Ratio38.5x

Price-To-Earnings vs Fair Ratio: GSKL is good value based on its Price-To-Earnings Ratio (21.5x) compared to the estimated Fair Price-To-Earnings Ratio (38.5x).

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 GSKL forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£13.23
UK£18.17
+37.4%
29.3%UK£34.79UK£11.90n/a18
Dec ’25UK£13.34
UK£18.29
+37.1%
29.0%UK£34.79UK£11.90n/a18
Nov ’25UK£14.18
UK£19.12
+34.9%
26.8%UK£34.79UK£14.20n/a18
Oct ’25UK£15.22
UK£19.73
+29.7%
24.2%UK£34.79UK£14.20n/a20
Sep ’25UK£16.63
UK£19.68
+18.3%
23.4%UK£34.79UK£14.20n/a21
Aug ’25UK£15.22
UK£19.72
+29.6%
22.8%UK£34.79UK£14.20n/a21
Jul ’25UK£15.28
UK£20.28
+32.8%
20.6%UK£34.79UK£14.20n/a22
Jun ’25UK£17.66
UK£20.26
+14.7%
21.9%UK£34.79UK£12.00n/a21
May ’25UK£17.01
UK£20.12
+18.3%
22.5%UK£34.79UK£12.00n/a20
Apr ’25UK£17.09
UK£19.89
+16.4%
23.5%UK£34.79UK£12.00n/a21
Mar ’25UK£16.64
UK£19.51
+17.2%
24.6%UK£34.79UK£12.00n/a20
Feb ’25UK£15.88
UK£18.90
+19.0%
25.6%UK£34.79UK£12.00n/a20
Jan ’25UK£14.53
UK£17.24
+18.6%
20.7%UK£25.30UK£12.00n/a19
Dec ’24UK£14.36
UK£17.25
+20.1%
20.8%UK£25.30UK£11.90UK£13.3419
Nov ’24UK£14.25
UK£17.27
+21.2%
20.6%UK£25.00UK£11.90UK£14.1819
Oct ’24UK£14.93
UK£17.13
+14.7%
20.8%UK£24.61UK£11.90UK£15.2219
Sep ’24UK£13.88
UK£16.97
+22.2%
22.1%UK£26.20UK£11.90UK£16.6320
Aug ’24UK£13.72
UK£17.03
+24.1%
21.6%UK£26.20UK£11.90UK£15.2220
Jul ’24UK£13.89
UK£17.15
+23.5%
20.9%UK£26.20UK£11.10UK£15.2820
Jun ’24UK£13.49
UK£17.15
+27.2%
20.9%UK£26.20UK£11.10UK£17.6620
May ’24UK£14.42
UK£17.12
+18.8%
20.8%UK£26.20UK£11.10UK£17.0120
Apr ’24UK£14.29
UK£17.13
+19.9%
20.6%UK£26.20UK£11.10UK£17.0920
Mar ’24UK£14.19
UK£17.21
+21.2%
21.3%UK£26.20UK£11.10UK£16.6421
Feb ’24UK£14.22
UK£17.02
+19.7%
21.4%UK£25.70UK£11.10UK£15.8820
Jan ’24UK£14.40
UK£17.03
+18.2%
21.1%UK£25.70UK£11.10UK£14.5320
Dec ’23UK£14.13
UK£17.10
+21.0%
20.9%UK£25.70UK£11.10UK£14.3620

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 Analysis2024/12/22 05:38
End of Day Share Price 2024/12/20 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 63 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