GSK Valuation

GSK plc

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40.080

+0.01(0.025%)1D

Overview
Forecast
Valuation
Earnings

GSK Relative Valuation

GSK's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, GSK is overvalued; if below, it's undervalued.

Historical Valuation

GSK plc (GSK) is now in the Undervalued zone, suggesting that its current forward PS ratio of 1.78 is considered Undervalued compared with the five-year average of 10.46. The fair price of GSK plc (GSK) is between 65.95 to 89.85 according to relative valuation methord. Compared to the current price of 40.07 USD , GSK plc is Undervalued By 39.24%.

Relative Value

Fair Zone

65.95-89.85

Current Price：40.07

39.24%

Undervalued

0.00

Trailing

Forward

6.45

EV/EBITDA

GSK plc. (GSK) has a current EV/EBITDA of 6.45. The 5-year average EV/EBITDA is 8.28. The thresholds are as follows: Strongly Undervalued below 4.63, Undervalued between 4.63 and 6.45, Fairly Valued between 10.11 and 6.45, Overvalued between 10.11 and 11.93, and Strongly Overvalued above 11.93. The current Forward EV/EBITDA of 6.45 falls within the Undervalued range.

7.45

EV/EBIT

GSK plc. (GSK) has a current EV/EBIT of 7.45. The 5-year average EV/EBIT is 9.63. The thresholds are as follows: Strongly Undervalued below 5.29, Undervalued between 5.29 and 7.46, Fairly Valued between 11.80 and 7.46, Overvalued between 11.80 and 13.97, and Strongly Overvalued above 13.97. The current Forward EV/EBIT of 7.45 falls within the Undervalued range.

1.82

GSK plc. (GSK) has a current PS of 1.82. The 5-year average PS is 2.07. The thresholds are as follows: Strongly Undervalued below 1.39, Undervalued between 1.39 and 1.73, Fairly Valued between 2.41 and 1.73, Overvalued between 2.41 and 2.75, and Strongly Overvalued above 2.75. The current Forward PS of 1.82 falls within the Historic Trend Line -Fairly Valued range.

6.81

P/OCF

GSK plc. (GSK) has a current P/OCF of 6.81. The 5-year average P/OCF is 8.55. The thresholds are as follows: Strongly Undervalued below 5.25, Undervalued between 5.25 and 6.90, Fairly Valued between 10.20 and 6.90, Overvalued between 10.20 and 11.85, and Strongly Overvalued above 11.85. The current Forward P/OCF of 6.81 falls within the Undervalued range.

10.17

P/FCF

GSK plc. (GSK) has a current P/FCF of 10.17. The 5-year average P/FCF is 12.31. The thresholds are as follows: Strongly Undervalued below 7.55, Undervalued between 7.55 and 9.93, Fairly Valued between 14.69 and 9.93, Overvalued between 14.69 and 17.06, and Strongly Overvalued above 17.06. The current Forward P/FCF of 10.17 falls within the Historic Trend Line -Fairly Valued range.

GSK plc (GSK) has a current Price-to-Book (P/B) ratio of 4.01. Compared to its 3-year average P/B ratio of 4.85 , the current P/B ratio is approximately -17.46% higher. Relative to its 5-year average P/B ratio of 4.87, the current P/B ratio is about -17.68% higher. GSK plc (GSK) has a Forward Free Cash Flow (FCF) yield of approximately 10.96%. Compared to its 3-year average FCF yield of 9.62%, the current FCF yield is approximately 13.93% lower. Relative to its 5-year average FCF yield of 9.72% , the current FCF yield is about 12.72% lower.

3.99

P/B

Median3y

4.85

Median5y

4.87

10.73

FCF Yield

Median3y

9.62

Median5y

9.72

Competitors Valuation Multiple

The average P/S ratio for GSK's competitors is 13.88, providing a benchmark for relative valuation. GSK plc Corp (GSK) exhibits a P/S ratio of 1.82, which is -86.92% above the industry average. Given its robust revenue growth of 7.13%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Alnylam Pharmaceuticals Inc

Regeneron Pharmaceuticals Inc

Ascentage Pharma Group International

53.96

17.74B

Performance Decomposition

Market capitalization of GSK decreased by 6.67% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 16.54 to 20.61.

The secondary factor is the Revenue Growth, contributed 7.13%to the performance.

Overall, the performance of GSK in the past 1 year is driven by Margin Expansion. Which is more sustainable.

7.13%

9.95B → 10.65B

Revenue Growth

24.61%

16.54 → 20.61

Margin Expansion

-38.41%

28.65 → 17.64

P/E Change

-6.67%