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Is this Large Market Cap Stock target price reasonable for GlaxoSmithKline plc (NYSE:GSK)?

The company in question is, GlaxoSmithKline plc (NYSE:GSK) currently with a stock price of 44.86 (1.59% today). The market cap for GlaxoSmithKline plc is 106084.24, and is in the sector Healthcare, and Drug Manufacturers РMajor industry. The target price for GlaxoSmithKline plc is 47. Currently GlaxoSmithKline plc is trading with a P/E of 133.01, and a forward P/E of 16.89. Average volume for GlaxoSmithKline plc is 3484.95 and so far today it is 4099268.

Performance in the last year for GlaxoSmithKline plc has been 14.06%. For EPS growth, GlaxoSmithKline plc has seen a growth of 204.10%, and is looking to grow in the next year to 14.00%. More long term stats show that EPS growth has been 40.20% over the last five years and could be 0.60% for the next five years. GlaxoSmithKline plc has seen sales growth quarter over quarter at 10.80%, with EPS growth quarter over quarter at -96.60%. The 20-day simple moving average is 5.50%, with the 200-day simple moving average coming to 11.53%.

Since the IPO date for GlaxoSmithKline plc on the 7/9/1986, GlaxoSmithKline plc has seen performance year to date to be 14.41%. With GlaxoSmithKline plc trading at 44.86, the dividend yield is 5.16%, and the EPS is 0.33.

So could GlaxoSmithKline plc, be undervalued? Well as said before P/E is 133.01. The PEG is 221.69, P/S is 3.27 and the P/B is at 28.86. The P/cash is 17.87, with P/free cash flow at *TBA.

GlaxoSmithKline plc ability to deal with debt shows that the current ratio is 1.1, and the quick ratio is 0.8. This is with long term debt/equity at 5.61, and total debt/equity at 6.05.

In terms of margins, GlaxoSmithKline plc has a gross margin of 66.40%, an operating margin of 7.50% and a profit margin of 2.50%.Payout ratio for GlaxoSmithKline plc is 629.40%. Return on assets come to 1.10% with return on investment coming to 41.40%.

Insider ownership for GlaxoSmithKline plc, is at 0.20% and institutional ownership comes to 8.80%. Outstanding shares are at 2402.27. While shares float is 2402.27. The float short is currently 0.26%, and short ratio is 1.78.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Tony Dabbs

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