GlaxoSmithKline plc (ADR) ($GSK) Cautious Buy or Hold to $53 Confident Investor Rating: Fair
| Company name | GlaxoSmithKline plc (ADR) |
| Stock ticker | GSK |
| Live stock price | [stckqut]GSK[/stckqut] |
| P/E compared to competitors | Good |
MANAGEMENT EXECUTION
| Employee productivity | Fair |
| Sales growth | Poor |
| EPS growth | Good |
| P/E growth | Good |
| EBIT growth | Fair |
ANALYSIS
| Confident Investor Rating | Fair |
| Target stock price (TWCA growth scenario) | $53.11 |
| Target stock price (averages with growth) | $56.37 |
| Target stock price (averages with no growth) | $45.17 |
| Target stock price (manual assumptions) | $52.6 |
The following company description is from Google Finance: http://www.google.com/finance?q=gsk
GlaxoSmithKline plc (GSK) is global healthcare group, which is engaged in the creation and discovery, development, manufacture and marketing of pharmaceutical products, including vaccines, over-the-counter (OTC) medicines and health-related consumer products. GSK’s principal pharmaceutical products include medicines in therapeutic areas: respiratory, anti-virals, central nervous system, cardiovascular and urogenital, metabolic, antibacterials, oncology and emesis, dermatology, rare diseases, immuno-inflammation, vaccines and human immunodeficiency virus (HIV). The Company operates in three primary areas of business: Pharmaceuticals, Vaccines and Consumer Healthcare. On January 30, 2013, GSK acquired additional 29.3% interest in GlaxoSmithKline Consumer Healthcare Ltd. In May 2013, GlaxoSmithKline PLC acquired Okairos AG. In December 2013, Suntory Beverage & Food Ltd fully acquired Lucozade Ribena Suntory Limited from GlaxoSmithKline plc.
Confident Investor comments: At this time, I think that a Confident Investor can cautiously invest in GlaxoSmithKline plc (ADR) as long as the price is correct. Most of the fundamentals of this company are good but there are some concerns.
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In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:
Stock price at the time of the calculation: $53.03
Growth: 0.1
Current EPS (TTM): $2.63
P/E: 20
Future EPS Calc: $4.23
Future Stock Price Calc: $84.71
Target stock price: $52.6
I hope that this makes you a better investor. [/s2If]