DCF Tool

GSK

GSK Plc – Medicinal and Botanical Manufacturing
Analysis Results
Intrinsic Value $82.88
Latest Price $44.52
Relative Value 46% undervalued
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Cash Flow (Billions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 2.3%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 2.8%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 2.3%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2022 6.46 6.28
2023 6.61 6.25
2024 6.76 6.22
2025 6.92 6.19
2026 7.08 6.15
Terminal Value

Assuming the company was sold after the projection period at an exit multiple of 30, the terminal value of the company would be 212 billion. This corresponds to a present value of 180 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 31.1 billion. Adding in the terminal value gives a total present value of 211 billion.

There are presently 2.54 billion outstanding shares, so the intrinsic value per share is 82.88.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 18,674,000,000
Current Cash 4,335,000,000
Current Liabilities 23,670,000,000
Current Debt 3,601,000,000
Non-Cash Working Capital (NCWC) -5,730,000,000
Change in NCWC 464,127,160
EBIT 6,710,000,000
Tax Provision 346,000,000
Depreciation and Amortization 2,377,000,000
Capital Expenditure -2,931,000,000
Unlevered Free Cash Flow 6,193,508,269
Current Assets 27,587,437,884
Current Cash 8,679,408,273
Current Liabilities 30,177,634,921
Current Debt 5,075,478,150
Non-Cash Working Capital (NCWC) -6,194,127,160
Change in NCWC -3,010,792,253
EBIT 8,436,875,358
Tax Provision 790,275,792
Depreciation and Amortization 3,203,342,048
Capital Expenditure -3,050,737,068
Unlevered Free Cash Flow 4,876,422,340
Current Assets 25,565,051,784
Current Cash 6,277,478,725
Current Liabilities 31,544,789,667
Current Debt 9,073,881,701
Non-Cash Working Capital (NCWC) -3,183,334,907
Change in NCWC 1,548,238,096
EBIT 9,227,342,840
Tax Provision 1,249,986,883
Depreciation and Amortization 3,061,352,976
Capital Expenditure -2,837,063,619
Unlevered Free Cash Flow 9,586,326,212
Current Assets 21,477,966,273
Current Cash 5,022,141,579
Current Liabilities 28,537,894,456
Current Debt 7,350,496,758
Non-Cash Working Capital (NCWC) -4,731,573,003
Change in NCWC 11,058,748,522
EBIT 9,011,432,414
Tax Provision 956,719,239
Depreciation and Amortization 2,355,001,205
Capital Expenditure -2,278,869,700
Unlevered Free Cash Flow 18,730,766,600
Current Assets 21,380,374,917
Current Cash 5,256,720,079
Current Liabilities 35,711,019,121
Current Debt 3,797,042,757
Non-Cash Working Capital (NCWC) -15,790,321,526
Change in NCWC -11,921,519,278
EBIT 8,151,881,176
Tax Provision 1,822,580,523
Depreciation and Amortization 2,583,333,160
Capital Expenditure -2,959,677,221
Unlevered Free Cash Flow -7,281,854,751
Current Assets 20,543,868,565
Current Cash 6,129,598,986
Current Liabilities 23,359,107,571
Current Debt 5,076,035,743
Non-Cash Working Capital (NCWC) -3,868,802,248
Change in NCWC -1,755,215,468
EBIT 7,386,006,962
Tax Provision 1,078,150,483
Depreciation and Amortization 2,180,888,207
Capital Expenditure -2,891,459,449
Unlevered Free Cash Flow 1,579,566,253
Current Assets 24,567,669,180
Current Cash 8,746,131,700
Current Liabilities 19,872,455,380
Current Debt 1,937,331,120
Non-Cash Working Capital (NCWC) -2,113,586,780
Change in NCWC -1,987,706,300
EBIT 3,882,067,940
Tax Provision 3,190,375,560
Depreciation and Amortization 2,414,258,200
Capital Expenditure -2,815,647,140
Unlevered Free Cash Flow 698,561,305
Current Assets 22,810,786,240
Current Cash 6,848,830,560
Current Liabilities 20,661,493,600
Current Debt 4,573,657,440
Non-Cash Working Capital (NCWC) -125,880,480
Change in NCWC 1,953,205,880
EBIT 6,724,504,160
Tax Provision 212,908,960
Depreciation and Amortization 2,306,254,720
Capital Expenditure -2,721,194,080
Unlevered Free Cash Flow 7,952,374,093
Current Assets 25,105,668,520
Current Cash 9,233,056,000
Current Liabilities 22,550,090,520
Current Debt 4,598,391,640
Non-Cash Working Capital (NCWC) -2,079,086,360
Change in NCWC -856,349,680
EBIT 9,805,175,720
Tax Provision 1,680,086,440
Depreciation and Amortization 0
Capital Expenditure -2,804,540,760
Unlevered Free Cash Flow 4,641,129,862
Current Assets 22,115,866,080
Current Cash 6,888,998,600
Current Liabilities 22,314,540,600
Current Debt 5,864,936,440
Non-Cash Working Capital (NCWC) -1,222,736,680
Change in NCWC 1,943,402,570
EBIT 9,962,800,320
Tax Provision 3,146,487,520
Depreciation and Amortization 0
Capital Expenditure -2,455,164,800
Unlevered Free Cash Flow 6,550,928,253

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