GSK plc

NYSE:GSK Stock Report

Market Cap: US$68.6b

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 ($33.96) is trading below our estimate of fair value ($126.87)

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 Ratio21.8x
EarningsUK£2.51b
Market CapUK£54.76b

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 Average24.4x
ZTS Zoetis
32.9x9.9%US$79.8b
PFE Pfizer
34x16.8%US$145.4b
MRK Merck
20.7x15.6%US$250.9b
RPRX Royalty Pharma
10.3x6.3%US$15.6b
GSK GSK
21.8x21.9%US$54.8b

Price-To-Earnings vs Peers: GSK is good value based on its Price-To-Earnings Ratio (21.8x) compared to the peer average (24.4x).

Price to Earnings Ratio vs Industry

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

8 CompaniesPrice / EarningsEstimated GrowthMarket Cap
NDOI Endo
0.6xn/aUS$1.87b
PROC Procaps Group
2xn/aUS$103.80m
KPRX Kiora Pharmaceuticals
1.8x-40.4%US$10.11m
EDXC Endexx
0.8xn/aUS$5.34m
GSK 21.8xIndustry Avg. 20.5xNo. of Companies8PE01224364860+
8 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: GSK is expensive based on its Price-To-Earnings Ratio (21.8x) compared to the US Pharmaceuticals industry average (20.5x).

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 Ratio21.8x
Fair PE Ratio36.6x

Price-To-Earnings vs Fair Ratio: GSK is good value based on its Price-To-Earnings Ratio (21.8x) compared to the estimated Fair Price-To-Earnings Ratio (36.6x).

Analyst Price Targets

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

Analyst Forecast: Insufficient data to show price forecast.

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