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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 44.45 (0.13% today). The market cap for GlaxoSmithKline plc is 107834.41, and is in the sector Healthcare, and Drug Manufacturers – Major industry. The target price for GlaxoSmithKline plc is 48.67. Currently GlaxoSmithKline plc is trading with a P/E of 3170.71, and a forward P/E of 16. Average volume for GlaxoSmithKline plc is 3364.79 and so far today it is 1011081.

Performance in the last year for GlaxoSmithKline plc has been 8.33%. For EPS growth, GlaxoSmithKline plc has seen a growth of 204.10%, and is looking to grow in the next year to 6.61%. More long term stats show that EPS growth has been 40.20% over the last five years and could be 10.00% for the next five years. GlaxoSmithKline plc has seen sales growth quarter over quarter at 10.90%, with EPS growth quarter over quarter at -392.80%. The 20-day simple moving average is 3.81%, with the 200-day simple moving average coming to 10.51%.

Since the IPO date for GlaxoSmithKline plc on the 7/9/1986, GlaxoSmithKline plc has seen performance year to date to be 16.31%. With GlaxoSmithKline plc trading at 44.45, the dividend yield is 4.96%, and the EPS is 0.01.

So could GlaxoSmithKline plc, be undervalued? Well as said before P/E is 3170.71. The PEG is 317.07, P/S is 3.31 and the P/B is at 143.19. The P/cash is 17.81, with P/free cash flow at *TBA.

GlaxoSmithKline plc ability to deal with debt shows that the current ratio is 0.9, and the quick ratio is 0.6. This is with long term debt/equity at 26.3, and total debt/equity at 34.11.

In terms of margins, GlaxoSmithKline plc has a gross margin of 66.60%, an operating margin of 5.30% and a profit margin of 0.10%.Payout ratio for GlaxoSmithKline plc is *TBA. Return on assets come to 0.10% 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 2429.25. While shares float is 2416.46. The float short is currently 0.26%, and short ratio is 1.88.

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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Stephen Butters

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