GSK
GSK plc
$50.22
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Mild
·
Conviction
Fair Value
Trading 3.7% below fair value
You pay
$50.22
Bear
$44.68
Fair
$52.13
Bull
$59.58
Bear
$44.68
-11.0%
$3.72 × 12x P/E
Fair
$52.13
+3.8%
$3.72 × 14x P/E
Bull
$59.58
+18.6%
$3.72 × 16x P/E
Adjust Assumptions
14.0x
3.72$
Key Value Driver
Normalized P/E multiple (14x base case)
Implied Market Multiple
13.5x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (29 analysts)
$60.00
Divergence from AlphaVal
13%
Summary
Applying a 14x P/E to adjusted EPS of $3.72, the base-case value is $52.13 per share.
Warnings
Financial statements were converted from GBP into USD using GBPUSD at 1.3394 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