GSK PE Ratio & Valuation,Is GSK Overvalued

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 Fair zone, suggesting that its current forward PE ratio of 11.04 is considered Fairly compared with the five-year average of 9.95. The fair price of GSK plc (GSK) is between 42.79 to 71.49 according to relative valuation methord.

Relative Value

Fair Zone

42.79-71.49

Current Price：50.76

Fair

11.04

7.50

EV/EBITDA

GSK plc. (GSK) has a current EV/EBITDA of 7.50. The 5-year average EV/EBITDA is 8.10. The thresholds are as follows: Strongly Undervalued below 4.43, Undervalued between 4.43 and 6.27, Fairly Valued between 9.94 and 6.27, Overvalued between 9.94 and 11.77, and Strongly Overvalued above 11.77. The current Forward EV/EBITDA of 7.50 falls within the Historic Trend Line -Fairly Valued range.

8.59

EV/EBIT

GSK plc. (GSK) has a current EV/EBIT of 8.59. The 5-year average EV/EBIT is 9.40. The thresholds are as follows: Strongly Undervalued below 5.06, Undervalued between 5.06 and 7.23, Fairly Valued between 11.57 and 7.23, Overvalued between 11.57 and 13.74, and Strongly Overvalued above 13.74. The current Forward EV/EBIT of 8.59 falls within the Historic Trend Line -Fairly Valued range.

2.17

GSK plc. (GSK) has a current PS of 2.17. The 5-year average PS is 2.07. The thresholds are as follows: Strongly Undervalued below 1.37, Undervalued between 1.37 and 1.72, Fairly Valued between 2.42 and 1.72, Overvalued between 2.42 and 2.77, and Strongly Overvalued above 2.77. The current Forward PS of 2.17 falls within the Historic Trend Line -Fairly Valued range.

8.35

P/OCF

GSK plc. (GSK) has a current P/OCF of 8.35. The 5-year average P/OCF is 8.44. The thresholds are as follows: Strongly Undervalued below 5.07, Undervalued between 5.07 and 6.76, Fairly Valued between 10.12 and 6.76, Overvalued between 10.12 and 11.80, and Strongly Overvalued above 11.80. The current Forward P/OCF of 8.35 falls within the Historic Trend Line -Fairly Valued range.

12.77

P/FCF

GSK plc. (GSK) has a current P/FCF of 12.77. The 5-year average P/FCF is 12.19. The thresholds are as follows: Strongly Undervalued below 7.45, Undervalued between 7.45 and 9.82, Fairly Valued between 14.55 and 9.82, Overvalued between 14.55 and 16.92, and Strongly Overvalued above 16.92. The current Forward P/FCF of 12.77 falls within the Historic Trend Line -Fairly Valued range.

GSK plc (GSK) has a current Price-to-Book (P/B) ratio of 9.20. Compared to its 3-year average P/B ratio of 5.03 , the current P/B ratio is approximately 82.85% higher. Relative to its 5-year average P/B ratio of 5.00, the current P/B ratio is about 84.07% higher. GSK plc (GSK) has a Forward Free Cash Flow (FCF) yield of approximately 8.81%. Compared to its 3-year average FCF yield of 8.92%, the current FCF yield is approximately -1.28% lower. Relative to its 5-year average FCF yield of 9.67% , the current FCF yield is about -8.86% lower.

9.20

P/B

Median3y

5.03

Median5y

5.00

8.81

FCF Yield

Median3y

8.92

Median5y

9.67

Competitors Valuation Multiple

The average P/S ratio for GSK's competitors is 4.63, providing a benchmark for relative valuation. GSK plc Corp (GSK) exhibits a P/S ratio of 2.17, which is -53.1% above the industry average. Given its robust revenue growth of 10.62%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of GSK increased by 45.10% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 0.81 to 25.08.

The secondary factor is the Revenue Growth, contributed 10.62%to the performance.

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

10.62%

10.42B → 11.52B

Revenue Growth

2996.30%

0.81 → 25.08

Margin Expansion

-2961.82%

-0.97 → 27.76

P/E Change

45.10%

34.89 → 50.62

Mkt Cap Growth

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Frequently Asked Questions

Is GSK plc (GSK) currently overvalued or undervalued?

What is GSK plc (GSK) fair value?

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. The fair price of GSK plc (GSK) is between 42.79 to 71.49 according to relative valuation methord.

How does GSK's valuation metrics compare to the industry average?

The average P/S ratio for GSK's competitors is 4.63, providing a benchmark for relative valuation. GSK plc Corp (GSK) exhibits a P/S ratio of 2.17, which is -53.10% above the industry average. Given its robust revenue growth of 10.62%, this premium appears unsustainable.

What is the current P/B ratio for GSK plc (GSK) as of Jan 08 2026?

As of Jan 08 2026, GSK plc (GSK) has a P/B ratio of 9.20. This indicates that the market values GSK at 9.20 times its book value.

What is the current FCF Yield for GSK plc (GSK) as of Jan 08 2026?

As of Jan 08 2026, GSK plc (GSK) has a FCF Yield of 8.81%. This means that for every dollar of GSK plc’s market capitalization, the company generates 8.81 cents in free cash flow.

What is the current Forward P/E ratio for GSK plc (GSK) as of Jan 08 2026?

As of Jan 08 2026, GSK plc (GSK) has a Forward P/E ratio of 11.04. This means the market is willing to pay $11.04 for every dollar of GSK plc’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for GSK plc (GSK) as of Jan 08 2026?

As of Jan 08 2026, GSK plc (GSK) has a Forward P/S ratio of 2.17. This means the market is valuing GSK at $2.17 for every dollar of expected revenue over the next 12 months.

GSK Valuation