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GlaxoSmithKline PLC
LSE:GSK

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GlaxoSmithKline PLC
LSE:GSK
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Price: 2 020 GBX -2.7% Market Closed
Market Cap: £82.1B

EV/EBIT

9.8
Current
9%
More Expensive
vs 3-y average of 8.9

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.

EV/EBIT
9.8
=
Enterprise Value
GBX98.7B
/
EBIT
£9.6B

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.

EV/EBIT
9.8
=
Enterprise Value
GBX98.7B
/
EBIT
£9.6B

Valuation Scenarios

GlaxoSmithKline PLC is trading above its 3-year average

If EV/EBIT returns to its 3-Year Average (8.9), the stock would be worth GBX1 849.59 (8% downside from current price).

Statistics
Positive Scenarios
0/4
Maximum Downside
-100%
Maximum Upside
No Upside Scenarios
Average Downside
53%
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%
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
GBX98.7B
/
Jan 2026
£9.6B
=
9.8
Current
GBX98.7B
/
Dec 2026
£10B
=
9.8
Forward
GBX98.7B
/
Dec 2027
£10.8B
=
9.2
Forward
GBX98.7B
/
Dec 2028
£11.1B
=
8.9
Forward
GBX98.7B
/
Dec 2029
£13B
=
7.6
Forward
GBX98.7B
/
Dec 2030
£12.4B
=
8
Forward
GBX98.7B
/
Dec 2031
£12B
=
8.2
Forward
GBX98.7B
/
Dec 2032
£11.1B
=
8.9
Forward
GBX98.7B
/
Dec 2033
£10.5B
=
9.4
Forward

Forward EV/EBIT shows whether today’s EV/EBIT still looks high or low once future ebit are taken into account.

Peer Comparison

All Multiples
EV/EBIT
P/E
All Countries
Close
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
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
EV/EBIT Multiple
EBIT Growth EV/EBIT to Growth
UK
GlaxoSmithKline PLC
LSE:GSK
Average EV/EBIT: 102
9.8
5%
2
US
Eli Lilly and Co
NYSE:LLY
29.2
22%
1.3
US
Johnson & Johnson
NYSE:JNJ
21.4
13%
1.6
CH
Roche Holding AG
SIX:ROG
13.4
6%
2.2
UK
AstraZeneca PLC
LSE:AZN
21.9
21%
1
CH
Novartis AG
SIX:NOVN
15.6
9%
1.7
US
Merck & Co Inc
NYSE:MRK
11.5
6%
1.9
IE
E
Endo International PLC
LSE:0Y5F
970
N/A N/A
DK
Novo Nordisk A/S
CSE:NOVO B
9.8
2%
4.9
US
Pfizer Inc
NYSE:PFE
10.1
-4%
N/A
US
Bristol-Myers Squibb Co
NYSE:BMY
8.9
-6%
N/A
P/E Multiple
Earnings Growth PEG
UK
GlaxoSmithKline PLC
LSE:GSK
Average P/E: 21.2
14.4
14%
1
US
Eli Lilly and Co
NYSE:LLY
40.5
32%
1.3
US
Johnson & Johnson
NYSE:JNJ
26
8%
3.3
CH
Roche Holding AG
SIX:ROG
20.1
14%
1.4
UK
AstraZeneca PLC
LSE:AZN
28
25%
1.1
CH
Novartis AG
SIX:NOVN
19.5
14%
1.4
US
Merck & Co Inc
NYSE:MRK
15.2
14%
1.1
IE
E
Endo International PLC
LSE:0Y5F
Negative Multiple: -83.6 N/A N/A
DK
Novo Nordisk A/S
CSE:NOVO B
11.4
0%
N/A
US
Pfizer Inc
NYSE:PFE
19.8
22%
0.9
US
Bristol-Myers Squibb Co
NYSE:BMY
16.8
16%
1

Market Distribution

Higher than 94% of companies in United Kingdom
Percentile
94th
Based on 1 864 companies
94th percentile
9.8
Low
0 — 0
Typical Range
0 — 0.1
High
0.1 —
Distribution Statistics
United Kingdom
Min 0
30th Percentile 0
Median 0
70th Percentile 0.1
Max 1 015

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.

GSK Intrinsic Value
1 903.73 GBX
Overvaluation 6%
Intrinsic Value
Price GBX2 020
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