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:
Below please find a table outlining a discounted cash flow forecast for GSK, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Glaxosmithkline Plc ranked in the 33th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. As for the metrics that stood out in our discounted cash flow analysis of Glaxosmithkline Plc, consider:
GSK's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 32.8% of tickers in our DCF set.
The weighted average cost of capital for the company is 8. This value is greater than only 22.7% 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 COO, IQV, DXCM, ZTS, and HAE.
AstraZeneca's cancer drug Calquence has shown initial signs of helping hospitalised COVID-19 patients get through the worst of the disease, as researchers scramble to repurpose existing treatments to help fight the deadly infection. Results from the preliminary research involving 19 patients, which was backed by the United States National Institutes of Health, encouraged the British drugmaker to explore the drug's new use in a wider clinical trial announced in April. Eleven patients had been on oxygen when they started the 10-14 day Calquence course and eight of them could afterwards be discharged, breathing independently, according to results in a paper co-authored by Astra's head of oncology research, Jose Baselga.
GlaxoSmithKline’s stock is worth the attention for drug developments that aren’t yet factored into its value. Its trial of Cabotegravir, a regular injection to prevent HIV infection, has found early success.