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GlaxoSmithKline PLC
LSE:GSK

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GlaxoSmithKline PLC
LSE:GSK
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Price: 1 901 GBX -1.43% Market Closed
Market Cap: £77.1B

EV/IC

2.1
Current
16%
More Expensive
vs 3-y average of 1.8

Enterprise Value to Invested Capital (EV/IC) ratio compares a company`s total enterprise value to the capital invested in its business. It shows how efficiently the company`s market value reflects the funds used to generate returns.

EV/IC
2.1
=
Enterprise Value
GBX98.7B
/
Invested Capital
£42.3B

Enterprise Value to Invested Capital (EV/IC) ratio compares a company`s total enterprise value to the capital invested in its business. It shows how efficiently the company`s market value reflects the funds used to generate returns.

EV/IC
2.1
=
Enterprise Value
GBX98.7B
/
Invested Capital
£42.3B

Valuation Scenarios

GlaxoSmithKline PLC is trading above its 3-year average

If EV/IC returns to its 3-Year Average (1.8), the stock would be worth GBX1 644.05 (14% downside from current price).

Statistics
Positive Scenarios
0/4
Maximum Downside
-100%
Maximum Upside
No Upside Scenarios
Average Downside
57%
Scenario EV/IC Value Implied Price Upside/Downside
Current Multiple 2.1 GBX1 901
0%
3-Year Average 1.8 GBX1 644.05
-14%
5-Year Average 1.8 GBX1 594.96
-16%
Industry Average 0 GBX3.37
-100%
Country Average 0 GBX2.72
-100%

Forward EV/IC
Today’s price vs future invested capital

Not enough data available to calculate forward EV/IC

Peer Comparison

All Multiples
EV/IC
P/E
All Countries
Close
Market Cap EV/IC P/E
UK
GlaxoSmithKline PLC
LSE:GSK
77.5B GBP 2.1 13.6
US
Eli Lilly and Co
NYSE:LLY
908.9B USD 8.9 36
US
Johnson & Johnson
NYSE:JNJ
547.1B USD 3.4 26
CH
Roche Holding AG
SIX:ROG
248.4B CHF 2.9 20.1
UK
AstraZeneca PLC
LSE:AZN
209.6B GBP 3.7 27.4
CH
Novartis AG
SIX:NOVN
221.1B CHF 2.9 20.7
US
Merck & Co Inc
NYSE:MRK
277.6B USD 2.6 31.1
IE
Endo International PLC
LSE:0Y5F
244.4B USD 56 -83.6
DK
Novo Nordisk A/S
CSE:NOVO B
1.2T DKK 2.7 12.1
US
Pfizer Inc
NYSE:PFE
149.7B USD 1 19.3
US
Bristol-Myers Squibb Co
NYSE:BMY
118.9B USD -9.1 4 516.9
P/E Multiple
Earnings Growth PEG
UK
GlaxoSmithKline PLC
LSE:GSK
Average P/E: 472.3
13.6
14%
1
US
Eli Lilly and Co
NYSE:LLY
36
32%
1.1
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
27.4
25%
1.1
CH
Novartis AG
SIX:NOVN
20.7
14%
1.5
US
Merck & Co Inc
NYSE:MRK
31.1
14%
2.2
IE
E
Endo International PLC
LSE:0Y5F
Negative Multiple: -83.6 N/A N/A
DK
Novo Nordisk A/S
CSE:NOVO B
12.1
0%
N/A
US
Pfizer Inc
NYSE:PFE
19.3
22%
0.9
US
Bristol-Myers Squibb Co
NYSE:BMY
4 516.9
648%
7

Market Distribution

Higher than 95% of companies in United Kingdom
Percentile
95th
Based on 2 035 companies
95th percentile
2.1
Low
0 — 0
Typical Range
0 — 0
High
0 —
Distribution Statistics
United Kingdom
Min 0
30th Percentile 0
Median 0
70th Percentile 0
Max 141.2

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
1 879.28 GBX
Overvaluation 1%
Intrinsic Value
Price GBX1 901
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