GSK plc (GSK)
Valuation Overview•Is GSK plc Overvalued or Undervalued?
Trading at a discount across both intrinsic cash flow and relative peer multiples, indicating a strong margin of safety.
High-quality fundamentals with a strong composite quality score of 76/100, backed by robust profitability and solvency.
Wall Street forecasts a balanced outlook with consensus price targets near the current price.
Verdict: Solid fundamental quality, though solvency presents a headwind.
Wall Street sentiment is generally neutral alongside robust expected earnings growth. This outlook is strongly supported by highly attractive capital returns, anchored by a strong, well-covered dividend yield.
GSK exhibits elite business quality, driven by exceptional capital efficiency and highly lucrative margins (highlighted by a massive 22.1% ROIC). This is paired with a moderately leveraged but stable balance sheet.
The company exhibits steady, low-single-digit revenue growth paired with highly explosive earnings growth (32.3% EPS 3Y CAGR). This growth is supported by elite operational efficiency, sustaining an impressive 26.9% operating margin.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $7.6B | +4.1% | +3.7% | +6.0% | +3.2% | |
| EBITDA | $2.8B | — | +7.5% | — | — | |
| Net Income | $1.7B | +122.0% | -27.4% | — | -3.8% | |
| EPS (Diluted) | $0.86 | +348.4% | +32.3% | +14.2% | +2.6% | |
| Free Cash Flow | $698.0M | +63.1% | -4.8% | -2.2% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 72.9% | 71.8% | 69.9% | 68.1% |
| Operating Margin | 26.9% | 20.2% | 20.0% | 18.6% |
| Net Margin | 19.2% | 14.0% | 22.1% | 16.8% |
| FCF Margin | 22.1% | 16.6% | 18.9% | 19.0% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $1.16 | $1.24 | +6.9% | ||
| Q1'26 | $0.64 | $0.68 | +6.3% | ||
| Q4'25 | $1.26 | $1.48 | +17.5% | ||
| Q3'25 | — | $0.96 | — | ||
| Q2'25 | $1.08 | $1.13 | +4.6% | ||
| Q1'25 | $0.44 | $0.59 | +34.1% | ||
| Q4'24 | $1.16 | $1.27 | +9.5% | ||
| Q3'24 | $1.00 | $1.09 | +9.0% |
Total return is +35.8% (1Y), outperforming the benchmark by +10.8%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +4.0% | -5.3% | — |
| 1Y | +35.8% | +10.8% | +4.7% |
| 3YCAGR | +17.1% | -1.4% | +14.1% |
| 5YCAGR | +8.2% | -4.2% | +20.9% |
| 10YCAGR | +5.3% | -7.8% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about GSK plc (GSK) valuation, health, and returns.
GSK plc is estimated to be undervalued under our discounted cash flow framework. relative multiples indicate the stock is Cheap versus peers compared to industry peers. undervalued (implying +277.9% upside to DCF intrinsic value of $191.49)
GSK plc has multiple valuation anchors: DCF Intrinsic Value: $191.49 | Peer Relative Fair Value: $67.96 | Wall Street Analyst Target: $52.45 (implying +3.5% upside). A convergence of these signals offers higher conviction.
GSK plc displays good financial health with a composite quality score of 76/100, supported by a Altman Z-Score of 2.0 (grey zone), Piotroski F-Score of 8/9, Return on Invested Capital (ROIC) of 22.1%.
GSK plc pays a 6.4% dividend yield, covered by a 44% payout ratio with 2 years of growth, supplemented by a 0.0% buyback yield.
GSK plc's current growth trajectory is Stable. The company achieved +4.1% 1Y revenue growth and +348.4% 1Y EPS growth, compared to its 3Y revenue CAGR of +3.7%.
Wall Street consensus is Hold based on 29 analysts, beating EPS expectations in 92% of recent quarters with a 7-quarter streak. The consensus price target represents a +3.5% change from current levels.
Investment risks for GSK plc include: -19.9% 1-year max drawdown. Volatility risk is characterized by a beta of 0.33x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.