GSK plc

LSE:GSK Stock Report

Market Cap: UK£53.1b

GSK Valuation

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

Below Fair Value: GSK (£13.01) is trading below our estimate of fair value (£51.3)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for GSK. This is calculated by dividing GSK's market cap by their current earnings.
What is GSK's PE Ratio?
PE Ratio21.1x
EarningsUK£2.51b
Market CapUK£53.09b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for GSK vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average25.5x
AZN AstraZeneca
30x18.0%UK£154.7b
HIK Hikma Pharmaceuticals
17.8x11.2%UK£4.0b
ANCR Animalcare Group
30.9x15.8%UK£143.1m
MRK Merck KGaA
23.1x10.6%€62.3b
GSK GSK
21.1x22.4%UK£53.1b

Price-To-Earnings vs Peers: GSK is good value based on its Price-To-Earnings Ratio (21.1x) compared to the peer average (25.5x).

Price to Earnings Ratio vs Industry

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

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
GSK 21.1xIndustry Avg. 20.7xNo. of Companies7PE01224364860+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: GSK is expensive based on its Price-To-Earnings Ratio (21.1x) compared to the European Pharmaceuticals industry average (20.7x).

Price to Earnings Ratio vs Fair Ratio

What is GSK'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.

GSK PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio21.1x
Fair PE Ratio38x

Price-To-Earnings vs Fair Ratio: GSK is good value based on its Price-To-Earnings Ratio (21.1x) compared to the estimated Fair Price-To-Earnings Ratio (38x).

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 GSK forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£13.01
UK£18.55
+42.6%
28.8%UK£34.79UK£13.50n/a18
Nov ’25UK£14.20
UK£19.12
+34.7%
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£16.57
UK£19.68
+18.8%
23.4%UK£34.79UK£14.20n/a21
Aug ’25UK£15.26
UK£19.72
+29.3%
22.8%UK£34.79UK£14.20n/a21
Jul ’25UK£15.26
UK£20.28
+32.9%
20.6%UK£34.79UK£14.20n/a22
Jun ’25UK£17.67
UK£20.26
+14.7%
21.9%UK£34.79UK£12.00n/a21
May ’25UK£17.05
UK£20.12
+18.0%
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£16.62
UK£19.51
+17.4%
24.6%UK£34.79UK£12.00n/a20
Feb ’25UK£15.86
UK£18.90
+19.2%
25.6%UK£34.79UK£12.00n/a20
Jan ’25UK£14.50
UK£17.24
+18.9%
20.7%UK£25.30UK£12.00n/a19
Dec ’24UK£14.36
UK£17.25
+20.1%
20.8%UK£25.30UK£11.90n/a19
Nov ’24UK£14.23
UK£17.27
+21.4%
20.6%UK£25.00UK£11.90UK£14.2019
Oct ’24UK£14.92
UK£17.13
+14.8%
20.8%UK£24.61UK£11.90UK£15.2219
Sep ’24UK£13.88
UK£16.97
+22.3%
22.1%UK£26.20UK£11.90UK£16.5720
Aug ’24UK£13.72
UK£17.03
+24.2%
21.6%UK£26.20UK£11.90UK£15.2620
Jul ’24UK£13.89
UK£17.15
+23.5%
20.9%UK£26.20UK£11.10UK£15.2620
Jun ’24UK£13.48
UK£17.15
+27.3%
20.9%UK£26.20UK£11.10UK£17.6720
May ’24UK£14.41
UK£17.12
+18.8%
20.8%UK£26.20UK£11.10UK£17.0520
Apr ’24UK£14.29
UK£17.13
+19.9%
20.6%UK£26.20UK£11.10UK£17.0920
Mar ’24UK£14.22
UK£17.21
+21.0%
21.3%UK£26.20UK£11.10UK£16.6221
Feb ’24UK£14.20
UK£17.02
+19.9%
21.4%UK£25.70UK£11.10UK£15.8620
Jan ’24UK£14.38
UK£17.03
+18.4%
21.1%UK£25.70UK£11.10UK£14.5020
Dec ’23UK£14.15
UK£17.10
+20.8%
20.9%UK£25.70UK£11.10UK£14.3620
Nov ’23UK£14.46
UK£18.01
+24.6%
19.5%UK£25.70UK£11.21UK£14.2321

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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