GSK
GSK plc
$53.71
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Undervalued
Trading 46.6% below fair value
You pay
$53.71
Bear
$86.17
Fair
$100.53
Bull
$114.89
Bear
$86.17
+60.4%
$8.33 × 12x P/E
Fair
$100.53
+87.2%
$8.33 × 14x P/E
Bull
$114.89
+113.9%
$8.33 × 16x P/E
Key Value Driver
Normalized P/E multiple (14x base case)
Implied Market Multiple
6.5x
Summary
Our base-case estimate uses a valuation based on adjusted earnings per share and a normalized price-to-earnings multiple. We then blend that result with the average analyst price target of $52.45 from 29 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $100.53 per share.
Warnings
Wall Street's average price target is $52.45 (from 29 analysts). Our estimate is 122% above the consensus -- consider that gap carefully.
Financial statements were converted from GBP into USD using GBPUSD at 1.3291 USD per GBP.
Key Risks
- Growth DCF inappropriate — terminal value assumptions dominate
- EV/EBITDA misleading for regulated businesses where capex is mandated
- Regulatory risk is a fat tail not visible in normal multiples