GlaxoSmithKline plc creates, discovers, develops, manufactures, and markets pharmaceutical products, including vaccines, over-the-counter medicines, and health-related consumer products worldwide. The companys wellness products include Panadol and Panadol Cold & Flu, ENO and Tums - antacids, and Nicorette (US), Nicoderm, NiQuitin CQ, and Nicabate - treatment of nicotine withdrawal, Sensodyne - to ttreat and prevent dental sensitivity, Polident, Poligrip, and Corega to enhance comfort of fitted denture, and Aquafresh for the prevention of gum disease and bad breath. The company was founded in 1935 and is based, the United Kingdom.
GSK Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Glaxosmithkline Plc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Glaxosmithkline Plc ranked in the 30th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 33.17%. As for the metrics that stood out in our discounted cash flow analysis of Glaxosmithkline Plc, consider:
83% of the company's capital comes from equity, which is greater than 69.41% of stocks in our cash flow based forecasting set.
The weighted average cost of capital for the company is 7. This value is greater than only 19.91% stocks in the Healthcare sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Glaxosmithkline Plc? See HBIO, HRC, JNJ, CHE, and LHCG.