GlaxoSmithKline Valuation

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GSK -- USA Stock  

Report: 22nd of July 2020  

What is the current GlaxoSmithKline valuation? GlaxoSmithKline PLC Enterprise Value is increasing as compared to previous years. The preceding year's Enterprise Value was reported at 155.97 Billion. The current Tangible Asset Value is estimated to increase to about 38.4 B, while Cash Flow Per Share is projected to decrease to 1.37. GlaxoSmithKline PLC retains a regular Real Value of $45.64 per share. The prevalent price of the firm is $40.7. At this time, the firm appears to be undervalued. Our model calculates the value of GlaxoSmithKline PLC from evaluating the firm fundamentals such as return on equity of 50.81 %, and return on asset of 7.78 % as well as inspecting its technical indicators and Probability Of Bankruptcy. In general, we encourage purchasing undervalued assets and trading away overvalued assets since, at some point, asset prices and their ongoing real values will come together.

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GlaxoSmithKline PLC Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as GlaxoSmithKline PLC's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.
Undervalued
Today
40.70
15th of July 2020
45.64
Real Value
47.12
Upside
GlaxoSmithKline PLC is very steady asset. Calculation of real value of GlaxoSmithKline PLC is based on 3 months time horizon. Increasing GlaxoSmithKline PLC time horizon generally increases accuracy of value calculation and significantly improves predictive power of the methodology used.
Earnings
Estimates (6)
LowProjected EPSHigh
2.832.902.98
Details
Hype
Prediction
LowEstimated ValueHigh
39.2140.6942.17
Details
11 Analysts
Consensus
LowTarget PriceHigh
42.1050.2758.00
Details

  GlaxoSmithKline PLC Investments

GlaxoSmithKline Valuation Drivers Correlation

Many accounts on the financial statements of GlaxoSmithKline PLC are highly interrelated and sometimes correlated. Consequently, when conducting GlaxoSmithKline's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of GlaxoSmithKline
Click cells to compare fundamentals   

GlaxoSmithKline Market Cap

GlaxoSmithKline PLC is rated below average in market capitalization category among related companies. Market capitalization of Drug Manufacturers?General industry is currently estimated at about 1.52 Trillion. GlaxoSmithKline PLC holds roughly 100.84 Billion in market capitalization claiming about 7% of equities under Drug Manufacturers?General industry.
Capitalization  Valuation  Revenue  Workforce  Total debt

GlaxoSmithKline PLC Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining GlaxoSmithKline PLC's current stock value. Our valuation model uses many indicators to compare GlaxoSmithKline PLC value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across GlaxoSmithKline PLC competition to find correlations between indicators driving GlaxoSmithKline PLC's intrinsic value. More Info.
GlaxoSmithKline PLC is rated below average in beta category among related companies. It is rated below average in last dividend paid category among related companies creating about  1.12  of Last Dividend Paid per Beta. . GlaxoSmithKline PLC Dividend Yield is increasing as compared to previous years. The last year's value of Dividend Yield was reported at 0.043. The current Dividends per Basic Common Share is estimated to increase to 2.39, while Payment of Dividends and Other Cash Distributions is projected to decrease to (4.3 B).

About GlaxoSmithKline PLC Valuation

The Macroaxis Equity Valuation Mechanism determines the current worth of GlaxoSmithKline PLC on a weekly bases. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of GlaxoSmithKline PLC. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of GlaxoSmithKline PLC based exclusively on its fundamental and basic technical indicators. By analyzing GlaxoSmithKline PLC's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of GlaxoSmithKline PLC's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of GlaxoSmithKline PLC. We calculate exposure to GlaxoSmithKline PLC's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to GlaxoSmithKline PLC's related companies.
Last ReportedProjected for 2020
Gross Profit21.9 B22.5 B
Profit Margin 0.14  0.14 
GlaxoSmithKline plc engages in the creation, discovery, development, manufacture, and marketing of pharmaceutical products, vaccines, over-the-counter medicines, and health-related consumer products in the United Kingdom, the United States, and internationally. GlaxoSmithKline plc was founded in 1715 and is headquartered in Brentford, the United Kingdom. GlaxoSmithKline PLC operates under Drug Manufacturers - General classification in the United States and is traded on BATS Exchange. It employs 99437 people.

GlaxoSmithKline PLC Dividends Analysis For Valuation

GlaxoSmithKline PLC Dividend Yield is increasing as compared to previous years. The last year's value of Dividend Yield was reported at 0.043. The current Dividends per Basic Common Share is estimated to increase to 2.39, while Payment of Dividends and Other Cash Distributions is projected to decrease to (4.3 B). . GlaxoSmithKline PLC Accumulated Retained Earnings Deficit are decreasing as compared to previous years. The last year's value of Accumulated Retained Earnings Deficit was reported at 4.53 Billion. The current Price to Earnings Ratio is estimated to increase to 25.29, while Earning Before Interest and Taxes EBIT is projected to decrease to under 6 B.
Last ReportedProjected for 2020
Payment of Dividends and Other Cash Distributions-4 B-4.3 B
Dividend Yield 0.043  0.05 
Dividends per Basic Common Share 2.04  2.39 
There are various types of dividends GlaxoSmithKline PLC can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of GlaxoSmithKline shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from GlaxoSmithKline PLC directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When GlaxoSmithKline pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of GlaxoSmithKline PLC by the value of the dividends paid out.

GlaxoSmithKline PLC Valuation Growth Rates

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as GlaxoSmithKline PLC does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Quick Ratio0.54
Earnings Quarterly Growth88.60%
Revenue Growth18.70%
Payout Ratio74.09%
Earnings Growth86.80%

GlaxoSmithKline PLC Current Valuation Indicators

Valuation refers to the process of determining the present value of GlaxoSmithKline PLC and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value GlaxoSmithKline we look at many different elements of the entity such as GlaxoSmithKline's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation.
Book Value per Share
Enterprise Value over EBIT
Enterprise Value over EBITDA
Price to Book Value
Please check Risk vs Return Analysis. Please also try Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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