GlaxoSmithKline PLC
LSE:GSK
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EV/EBIT
Enterprise Value to EBIT (EV/EBIT) ratio compares a company`s total enterprise value to its earnings before interest and taxes. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.
Enterprise Value to EBIT (EV/EBIT) ratio compares a company`s total enterprise value to its earnings before interest and taxes. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.
Valuation Scenarios
If EV/EBIT returns to its 3-Year Average (8.9), the stock would be worth GBX1 849.59 (8% downside from current price).
| Scenario | EV/EBIT Value | Implied Price | Upside/Downside |
|---|---|---|---|
| Current Multiple | 9.8 | GBX2 020 |
0%
|
| 3-Year Average | 8.9 | GBX1 849.59 |
-8%
|
| 5-Year Average | 9.2 | GBX1 911.36 |
-5%
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| Industry Average | 0 | GBX4.1 |
-100%
|
| Country Average | 0 | GBX6.07 |
-100%
|
Forward EV/EBIT
Today’s price vs future ebit
| Today's Enterprise Value | EBIT | Forward EV/EBIT | ||
|---|---|---|---|---|
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GBX98.7B
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/ |
Jan 2026
£9.6B
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= |
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GBX98.7B
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/ |
Dec 2026
£10B
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= |
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GBX98.7B
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/ |
Dec 2027
£10.8B
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= |
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GBX98.7B
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/ |
Dec 2028
£11.1B
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= |
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GBX98.7B
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/ |
Dec 2029
£13B
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= |
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GBX98.7B
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/ |
Dec 2030
£12.4B
|
= |
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GBX98.7B
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/ |
Dec 2031
£12B
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= |
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GBX98.7B
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/ |
Dec 2032
£11.1B
|
= |
|
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GBX98.7B
|
/ |
Dec 2033
£10.5B
|
= |
|
Forward EV/EBIT shows whether today’s EV/EBIT still looks high or low once future ebit are taken into account.
Peer Comparison
| Market Cap | EV/EBIT | P/E | ||||
|---|---|---|---|---|---|---|
| UK |
|
GlaxoSmithKline PLC
LSE:GSK
|
82.3B GBP | 9.8 | 14.4 | |
| US |
|
Eli Lilly and Co
NYSE:LLY
|
835.2B USD | 29.2 | 40.5 | |
| US |
|
Johnson & Johnson
NYSE:JNJ
|
547.8B USD | 21.4 | 26 | |
| CH |
|
Roche Holding AG
SIX:ROG
|
248.4B CHF | 13.4 | 20.1 | |
| UK |
|
AstraZeneca PLC
LSE:AZN
|
216.4B GBP | 21.9 | 28 | |
| CH |
|
Novartis AG
SIX:NOVN
|
223.1B CHF | 15.6 | 19.5 | |
| US |
|
Merck & Co Inc
NYSE:MRK
|
276.9B USD | 11.5 | 15.2 | |
| IE |
E
|
Endo International PLC
LSE:0Y5F
|
244.4B USD | 970 | -83.6 | |
| DK |
|
Novo Nordisk A/S
CSE:NOVO B
|
1.1T DKK | 9.8 | 11.4 | |
| US |
|
Pfizer Inc
NYSE:PFE
|
153.5B USD | 10.1 | 19.8 | |
| US |
|
Bristol-Myers Squibb Co
NYSE:BMY
|
118.2B USD | 8.9 | 16.8 |
Market Distribution
| Min | 0 |
| 30th Percentile | 0 |
| Median | 0 |
| 70th Percentile | 0.1 |
| Max | 1 015 |
Other Multiples
GlaxoSmithKline PLC
Glance View
Once upon a time, in the bustling world of pharmaceuticals, GlaxoSmithKline PLC established itself as a formidable player. Born out of mergers and continuous evolution, GSK, as it is commonly known, carved its place in the competitive landscape through strategic research and pioneering innovations. The company operates at the intersection of pharmaceuticals, vaccines, and consumer healthcare, leveraging its breadth to tackle some of the world's most pressing health challenges. From its bustling laboratories to clinical trials, and finally to market, GSK is driven by a mission to improve the quality of human life. Its intricate network of research facilities and production plants stretch across the globe, working tirelessly to develop essential medications and vaccines that span a variety of therapeutic areas including respiratory, HIV, oncology, and immunology. GSK’s revenue streams flow from a well-diversified portfolio. The pharmaceutical division, representing the lion’s share, innovates and produces transformative medicines. Its vaccines division stands strong, leading with essential inoculations that prevent childhood and adult diseases, while the consumer healthcare segment provides everyday wellness products ranging from pain relief to vitamins and skincare. This triad not only underscores GSK’s dynamic adaptability to market needs but also highlights its resilience in weathering the cyclical nature of the healthcare industry. With a keen eye on long-term value and sustained investment in research and development, GSK continues to create a bridge between scientific advancements and societal well-being, defining its role as both a scientific leader and a profit-driven enterprise.