GlaxoSmithKline Pharmaceuticals Intrinsic Value

GLAXO • Healthcare
Current Stock Price
₹2459.80
Primary Intrinsic Value
₹1326.16
Market Cap
₹415.7K Cr
-62.1% Downside
Median Value
₹931.33
Value Range
₹492 - ₹1326
Assessment
Trading Above Calculated Value
Safety Margin
-100.0%

GLAXO Valuation Methods Summary

Method Type Intrinsic Value Range Upside/Downside Details
P/E Based Valuation earnings ₹1326.16 ₹1060.93 - ₹1591.39 -46.1% EPS: ₹60.28, Sector P/E: 22x
Book Value Method asset ₹491.96 ₹442.76 - ₹541.16 -80.0% Book Value/Share: ₹115.44, P/B: 2.0x
Revenue Multiple Method revenue ₹737.94 ₹664.15 - ₹811.73 -70.0% Revenue/Share: ₹240.47, P/S: 2.0x
EBITDA Multiple Method earnings ₹983.92 ₹885.53 - ₹1082.31 -60.0% EBITDA: ₹1488.00Cr, EV/EBITDA: 10x
Simple DCF (5Y) dcf ₹1036.83 ₹829.46 - ₹1244.20 -57.8% CF Growth: 15.0%, Discount: 15%
PEG Ratio Method growth ₹737.94 ₹664.15 - ₹811.73 -70.0% EPS Growth: 8.0%, Fair P/E: 6.4x
Growth Adjusted P/E growth ₹931.33 ₹838.20 - ₹1024.46 -62.1% Revenue Growth: 6.0%, Adj P/E: 15.5x
ROE Based Valuation profitability ₹1229.90 ₹1106.91 - ₹1352.89 -50.0% ROE: 52.9%, P/E Multiple: 16x
Graham Defensive Method conservative ₹737.94 ₹664.15 - ₹811.73 -70.0% EPS: ₹60.28, BVPS: ₹115.44
Method Types: Earnings Asset DCF Growth Dividend Conservative

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Valuation Comparison Chart

GLAXO Intrinsic Value Analysis

What is the intrinsic value of GLAXO?

Based on our comprehensive analysis using 9 different valuation methods, the estimated intrinsic value of GlaxoSmithKline Pharmaceuticals (GLAXO) is ₹931.33 (median value). With the current market price of ₹2459.80, this represents a -62.1% variance from our estimated fair value.

The valuation range spans from ₹491.96 to ₹1326.16, indicating ₹491.96 - ₹1326.16.

Is GLAXO undervalued or overvalued?

Based on our multi-method analysis, GlaxoSmithKline Pharmaceuticals (GLAXO) appears to be trading above calculated value by approximately 62.1%.

Financial Health Analysis

Financial Metric Current Value Industry Benchmark Assessment Impact on Valuation
Current Ratio 13.53 Industry Standard: 2.0+ Above 2.0 Measures short-term liquidity capacity
Debt to Equity Ratio 2.11 Industry Standard: <0.5 Above 1.0 Indicates financial leverage level
Return on Equity 52.9% Industry Standard: 15%+ Above 15% Measures shareholder return efficiency
Operating Margin 34.0% Industry Standard: 20%+ Above 20% Indicates operational efficiency level
Asset Turnover Ratio 0.99x Industry Standard: 1.0x+ Above 0.5x Measures asset utilization efficiency

Cash Flow Quality Analysis

Period Operating Cash Flow Free Cash Flow Cash Flow Quality Sustainability Score
March 2025 ₹1,290 Cr ₹1,267 Cr Positive Free Cash Flow 8/10
March 2024 ₹582 Cr ₹582 Cr Positive Free Cash Flow 8/10
March 2023 ₹484 Cr ₹484 Cr Positive Free Cash Flow 8/10
March 2022 ₹811 Cr ₹608 Cr Positive Free Cash Flow 8/10
March 2021 ₹578 Cr ₹578 Cr Positive Free Cash Flow 8/10