One-glance verdict
Undervalued
$85.62 our estimate vs market $50.96
Wall Street consensus: $60.51 (-29.3% lower than our fair-value estimate)
40% below our estimate, below the bear case
Fundamentals snapshot
GSK plc
GSK · NYQ · Healthcare · Drug Manufacturers - General
Current price
$50.96
52-week range
$42.89 - $61.70
Market cap
$102.10B
Balance sheet
Watch
12.14x Strong cushion
Net debt $20.21B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 4.1% last year.
- Reward Returns 33.4% on equity, ahead of 66% of its peers.
- Risk Net debt grew 9.4% over 3 years.
- Risk Insider ownership is only 0.1% (peer median: 0.1%).
What this company does
GSK plc
GSK plc is a big drug company that makes and sells medicines and vaccines to help people get better and stay healthy. Their main income comes from selling these health products in places like the United Kingdom and the United States, and this is important because it shows how much people rely on their treatments for various illnesses and diseases.
How the company got here
GSK plc, formerly known as GlaxoSmithKline, has a long history dating back to 1715. It was formed through a series of mergers, most notably the 2000 merger of Glaxo Wellcome and SmithKline Beecham. This combined company became a giant in the pharmaceutical world. In a significant strategic shift, GSK completed the demerger of its consumer healthcare business (now Haleon) in 2022, sharpening its focus on biopharmaceuticals, which include vaccines and specialty medicines. This move aimed to create a more focused and agile company dedicated to innovation in healthcare.
What it actually does
GSK is a global healthcare company that researches, develops, and manufactures medicines and vaccines. Think of them as a company that creates the science-based treatments and preventative shots that doctors and patients rely on. They work on tackling a wide range of diseases, from common infections to serious conditions like cancer and autoimmune disorders. Their goal is to help people do more, feel better, and live longer by providing innovative healthcare solutions.
Specialty Medicines
This part of GSK focuses on developing and selling treatments for complex and often serious diseases. These include medicines for conditions like cancer (oncology), immune system disorders (immunology), and respiratory illnesses. They also produce treatments for HIV and certain inflammatory conditions like lupus. These are typically high-value, specialized drugs that require significant research and development, often targeting diseases with significant unmet medical needs.
Vaccines
GSK is a major player in the vaccine market, producing a wide array of vaccines to prevent infectious diseases. This segment covers vaccines for common childhood illnesses like measles, mumps, and chickenpox, as well as vaccines for shingles and meningitis in adults. They also develop vaccines against serious respiratory illnesses like RSV and influenza. This business is crucial for public health, providing preventative measures against a broad spectrum of diseases for people of all ages.
General Medicines
This segment of GSK offers treatments for more common, everyday health issues. It includes medicines for conditions such as asthma, chronic obstructive pulmonary disease (COPD), bacterial infections, and allergic reactions. While perhaps less complex than specialty medicines, these are essential treatments that reach a large number of patients. This part of the business provides foundational treatments for a variety of prevalent health concerns.
What management is betting on now
GSK's current strategy is heavily focused on leveraging its scientific expertise to develop innovative new medicines and vaccines. They are prioritizing research and development in areas like immunology, infectious diseases, and oncology, aiming to bring breakthrough treatments to market. A key part of their bet is on their pipeline of new drugs and vaccines, which they believe will drive future growth. They are also investing in advanced technologies, such as mRNA, to enhance their R&D capabilities and address unmet medical needs.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $85.62 vs current price $50.96
Wall Street consensus is the average analyst price target: $60.51 (-29.3% lower than our fair-value estimate).
Our most-likely fair value is $85.62 a share — about 68.0% above today's price of $50.96, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Watch
Net debt $20.2B. Interest coverage 12.1x.
Net debt
$20.21B
Interest coverage
12.14x
GSK plc's profit covers its interest bill about 12.1 times over. which is stronger than most peers shown here.
Watch
Worse cushion
Baseline
Better cushion
GSK
BASELINE
GSK plc
Total debt $24.35B Interest coverage 12.14x This is the baseline the peer rows are being compared against.
Total debt $26.27B Interest coverage 15.33x +26% vs GSK Carries about 1.3x more debt cushion than GSK.
Total debt $45.05B Interest coverage 7.26x -40% vs GSK Carries about 1.7x less debt cushion than GSK.
Total debt $63.48B Interest coverage 6.52x -46% vs GSK Carries about 1.9x less debt cushion than GSK.
Total debt $26.25B Interest coverage 11.43x -6% vs GSK Has roughly the same debt cushion as GSK.
Total debt $32.35B Interest coverage 8.26x -32% vs GSK Carries about 1.5x less debt cushion than GSK.
What you should know
The case for and against GSK
3 Rewards
2 Risks
Rewards
-
Revenue grew 4.1% last year.
-
Returns 33.4% on equity, ahead of 66% of its peers.
-
Free cash flow was positive in 4/10 years.
Risks
-
Net debt grew 9.4% over 3 years.
-
Insider ownership is only 0.1% (peer median: 0.1%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
16.08x
Forward P/E
10.33x
P/B
4.32x
P/S
3.07x
EV/EBITDA
10.82x
PEG ratio
6.16x
Profitability
How much profit each dollar creates
Gross margin
73.5%
Operating margin
30.9%
Net margin
14.5%
ROE
33.4%
ROA
10.0%
Health
Liquidity and balance-sheet strength
Debt / equity
1.06x
Current ratio
0.81x
Quick ratio
0.52x
Total debt
$24.35B
Total cash
$4.13B
Growth
How the business has been compounding
Revenue TTM
$44.19B
Revenue 5Y CAGR
3.7%
EPS TTM
3.17
EPS 5Y CAGR
-27.6%
Cash flow
How much cash the business throws off
Operating CF TTM
$10.30B
Free CF TTM
$6.33B
FCF margin
14.3%
Dividend
Shareholder payout
Yield
3.5%
Payout ratio
56.5%
Last ex-div date
2026-08-14