GlaxoSmithKline PLC Valuation
| GSK Stock | USD 39.27 0.33 0.83% |
At this time, the firm appears to be fairly valued. GlaxoSmithKline PLC ADR retains a regular Real Value of $39.89 per share. The prevalent price of the firm is $39.27. Our model calculates the value of GlaxoSmithKline PLC ADR from evaluating the firm fundamentals such as return on equity of 0.46, and Return On Asset of 0.0881 as well as inspecting its technical indicators and probability of bankruptcy. In general, most investors encourage picking up undervalued assets and discarding overvalued assets since, at some point, asset prices and their ongoing real values will come together. Key fundamental drivers impacting GlaxoSmithKline PLC's valuation include:
Price Book 4.9647 | Enterprise Value 172.4 B | Enterprise Value Ebitda 11.0822 | Price Sales 2.7514 | Forward PE 10.3199 |
Fairly Valued
Today
Please note that GlaxoSmithKline PLC's price fluctuation is very steady at this time. Calculation of the real value of GlaxoSmithKline PLC ADR is based on 3 months time horizon. Increasing GlaxoSmithKline PLC's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for GlaxoSmithKline PLC ADR is useful when determining the fair value of the GlaxoSmithKline stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of GlaxoSmithKline PLC. Since GlaxoSmithKline PLC is currently traded on the exchange, buyers and sellers on that exchange determine the market value of GlaxoSmithKline Stock. However, GlaxoSmithKline PLC's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 39.27 | Real 39.89 | Target 39.63 | Hype 39.26 |
The real value of GlaxoSmithKline Stock, also known as its intrinsic value, is the underlying worth of GlaxoSmithKline PLC ADR Company, which is reflected in its stock price. It is based on GlaxoSmithKline PLC's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of GlaxoSmithKline PLC's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence GlaxoSmithKline PLC's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of GlaxoSmithKline PLC ADR helps investors to forecast how GlaxoSmithKline stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of GlaxoSmithKline PLC more accurately as focusing exclusively on GlaxoSmithKline PLC's fundamentals will not take into account other important factors: Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use GlaxoSmithKline PLC's intrinsic value based on its ongoing forecasts of GlaxoSmithKline PLC's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against GlaxoSmithKline PLC's closest peers. When choosing an evaluation method for GlaxoSmithKline PLC ADR, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.
GlaxoSmithKline PLC Investments |
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GlaxoSmithKline Valuation Trend
Knowing GlaxoSmithKline PLC's actual value is paramount for traders to make sound investment determinations. GlaxoSmithKline PLC's real value is not only important for the investor to make better decisions but also for a more accurate overall view of GlaxoSmithKline PLC's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both GlaxoSmithKline PLC's enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.
GlaxoSmithKline Market Cap
GlaxoSmithKline PLC ADR is one of the top stocks in market capitalization category among related companies. Market capitalization of Health Care industry is currently estimated at about 102.46 Billion. GlaxoSmithKline PLC totals roughly 81.18 Billion in market capitalization claiming about 79% of equities under Health Care industry.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 ADR is rated # 4 in price to earning category among related companies. It is rated # 2 in price to book category among related companies fabricating about 0.42 of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for GlaxoSmithKline PLC ADR is roughly 2.38 . Price To Book Ratio is expected to rise to 9.29 this year. Comparative valuation analysis is a catch-all model that can be used if you cannot value GlaxoSmithKline PLC by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for GlaxoSmithKline PLC's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the GlaxoSmithKline PLC's earnings, one of the primary drivers of an investment's value.Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates GlaxoSmithKline PLC's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in GlaxoSmithKline PLC and how it compares across the competition.
About GlaxoSmithKline PLC Valuation
The stock valuation mechanism determines the current worth of GlaxoSmithKline PLC ADR on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of GlaxoSmithKline PLC ADR. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of GlaxoSmithKline PLC ADR 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 Reported | Projected for Next Year | ||
| Gross Profit | 21.3 B | 14.6 B | |
| Pretax Profit Margin | 0.20 | 0.31 | |
| Operating Profit Margin | 0.23 | 0.32 | |
| Net Profit Margin | 0.16 | 0.22 | |
| Gross Profit Margin | 0.70 | 0.78 |
8 Steps to conduct GlaxoSmithKline PLC's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates GlaxoSmithKline PLC's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct GlaxoSmithKline PLC's valuation analysis, follow these 8 steps:- Gather financial information: Obtain GlaxoSmithKline PLC's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine GlaxoSmithKline PLC's revenue streams: Identify GlaxoSmithKline PLC's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research GlaxoSmithKline PLC's industry and market trends, including the size of the market, growth rate, and competition.
- Establish GlaxoSmithKline PLC's growth potential: Evaluate GlaxoSmithKline PLC's management, business model, and growth potential.
- Determine GlaxoSmithKline PLC's financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate GlaxoSmithKline PLC's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
A single share of GlaxoSmithKline PLC represents a small ownership stake in the entity. As a stockholder of GlaxoSmithKline, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
GlaxoSmithKline PLC Dividends Analysis For Valuation
Dividend Payout Ratio is expected to rise to 0.82 this year, although the value of Dividends Paid is projected to rise to (2.1 B). . At this time, GlaxoSmithKline PLC's Retained Earnings are quite stable compared to the past year. Earnings Yield is expected to rise to 0.08 this year, although the value of Price Earnings Ratio will most likely fall to 14.42.
| Last Reported | Projected for Next Year | ||
| Dividends Paid | -2.2 B | -2.1 B | |
| Dividend Yield | 0.02 | 0.02 | |
| Dividend Payout Ratio | 0.46 | 0.82 | |
| Dividend Paid And Capex Coverage Ratio | (65.44) | (62.17) |
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 ADR 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 Growth Indicators
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.
| Common Stock Shares Outstanding | 4.1 B | |
| Quarterly Earnings Growth Y O Y | -0.766 | |
| Forward Price Earnings | 10.3199 |
GlaxoSmithKline PLC Current Valuation Indicators
Valuation refers to the process of determining the present value of GlaxoSmithKline PLC ADR 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. GlaxoSmithKline PLC's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final GlaxoSmithKline PLC's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as GlaxoSmithKline PLC, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use GlaxoSmithKline PLC's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes GlaxoSmithKline PLC's worth.When determining whether GlaxoSmithKline PLC ADR is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if GlaxoSmithKline Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Glaxosmithkline Plc Adr Stock. Highlighted below are key reports to facilitate an investment decision about Glaxosmithkline Plc Adr Stock: Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in GlaxoSmithKline PLC ADR. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in state. You can also try the Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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When running GlaxoSmithKline PLC's price analysis, check to measure GlaxoSmithKline PLC's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy GlaxoSmithKline PLC is operating at the current time. Most of GlaxoSmithKline PLC's value examination focuses on studying past and present price action to predict the probability of GlaxoSmithKline PLC's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move GlaxoSmithKline PLC's price. Additionally, you may evaluate how the addition of GlaxoSmithKline PLC to your portfolios can decrease your overall portfolio volatility.
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Is GlaxoSmithKline PLC's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of GlaxoSmithKline PLC. If investors know GlaxoSmithKline will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about GlaxoSmithKline PLC listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.77) | Dividend Share 0.58 | Earnings Share 2.99 | Revenue Per Share 14.97 | Quarterly Revenue Growth 0.092 |
The market value of GlaxoSmithKline PLC ADR is measured differently than its book value, which is the value of GlaxoSmithKline that is recorded on the company's balance sheet. Investors also form their own opinion of GlaxoSmithKline PLC's value that differs from its market value or its book value, called intrinsic value, which is GlaxoSmithKline PLC's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because GlaxoSmithKline PLC's market value can be influenced by many factors that don't directly affect GlaxoSmithKline PLC's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between GlaxoSmithKline PLC's value and its price as these two are different measures arrived at by different means. Investors typically determine if GlaxoSmithKline PLC is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, GlaxoSmithKline PLC's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.