Latest Ratios: P/E Ratio 7.2x · EV/EBITDA 8.9x · ROE 39.4%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $107.2B | $50.5B | $70.0B | $76.2B | $71.8B | $71.5B | $74.2B | $94.3B | $76.0B | $70.1B | $75.6B |
| Enterprise Value | $126.3B | $64.8B | $83.3B | $95.4B | $89.0B | $98.4B | $102.7B | $128.5B | $98.2B | $83.4B | $89.5B |
| P/E Ratio → | 7.20 | 8.82 | 27.27 | 15.44 | 14.64 | 16.33 | 12.87 | 20.25 | 20.99 | 45.47 | 83.72 |
| P/S Ratio | 2.46 | 1.55 | 2.23 | 2.51 | 2.45 | 2.89 | 3.05 | 2.79 | 2.47 | 2.32 | 2.71 |
| P/B Ratio | 2.59 | 3.17 | 5.35 | 4.67 | 7.11 | 2.47 | 2.61 | 3.88 | 20.69 | 20.09 | 15.24 |
| P/FCF | 13.82 | 8.67 | 19.61 | 12.17 | 10.63 | 13.49 | 11.42 | 16.10 | 11.47 | 14.86 | 18.24 |
| P/OCF | 11.27 | 7.07 | 10.69 | 9.65 | 8.79 | 8.99 | 8.79 | 11.76 | 9.02 | 10.13 | 11.64 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 1.98 | 2.66 | 3.15 | 3.04 | 3.99 | 4.22 | 3.81 | 3.19 | 2.76 | 3.21 |
| EV / EBITDA | 8.90 | 6.08 | 12.68 | 10.55 | 10.38 | 15.19 | 12.79 | 14.15 | 13.38 | 13.87 | 20.47 |
| EV / EBIT | 11.37 | 8.01 | 20.24 | 14.05 | 13.79 | 22.56 | 17.06 | 18.09 | 17.87 | 19.56 | 33.70 |
| EV / FCF | — | 11.12 | 23.33 | 15.25 | 13.18 | 18.58 | 15.81 | 21.93 | 14.82 | 17.68 | 21.59 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 72.4% | 72.4% | 71.2% | 71.8% | 67.4% | 66.9% | 67.4% | 64.9% | 66.8% | 65.7% | 66.7% |
| Operating Margin | 25.5% | 25.5% | 12.8% | 22.2% | 21.9% | 17.6% | 24.6% | 20.6% | 17.8% | 13.5% | 9.3% |
| Net Profit Margin | 17.5% | 17.5% | 8.2% | 16.2% | 51.0% | 17.8% | 23.6% | 13.8% | 11.8% | 5.1% | 3.3% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 39.4% | 39.4% | 17.5% | 37.3% | 76.7% | 15.3% | 21.8% | 33.2% | 101.2% | 36.3% | 13.2% |
| ROA | 9.5% | 9.5% | 3.8% | 7.3% | 17.9% | 4.0% | 5.3% | 5.7% | 6.3% | 2.7% | 1.6% |
| ROIC | 22.1% | 22.1% | 9.7% | 16.1% | 11.6% | 5.8% | 7.8% | 12.4% | 19.3% | 17.2% | 10.1% |
| ROCE | 21.5% | 21.5% | 9.3% | 15.7% | 11.4% | 5.6% | 7.8% | 12.7% | 16.8% | 11.7% | 6.5% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 1.11 | 1.11 | 1.30 | 1.41 | 2.08 | 1.13 | 1.30 | 1.66 | 7.10 | 4.90 | 3.79 |
| Debt / EBITDA | 1.66 | 1.66 | 2.58 | 2.54 | 2.45 | 5.05 | 4.62 | 4.45 | 3.55 | 2.84 | 4.30 |
| Net Debt / Equity | — | 0.90 | 1.02 | 1.18 | 1.71 | 0.93 | 1.00 | 1.41 | 6.04 | 3.80 | 2.80 |
| Net Debt / EBITDA | 1.34 | 1.34 | 2.02 | 2.13 | 2.01 | 4.16 | 3.55 | 3.76 | 3.02 | 2.21 | 3.18 |
| Debt / FCF | — | 2.45 | 3.72 | 3.07 | 2.56 | 5.09 | 4.39 | 5.84 | 3.35 | 2.81 | 3.35 |
| Interest Coverage | 11.77 | 11.77 | 6.26 | 8.76 | 7.54 | 5.57 | 6.75 | 7.79 | 7.39 | 5.81 | 3.61 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.82 | 0.82 | 0.78 | 0.88 | 0.91 | 0.79 | 0.91 | 0.81 | 0.75 | 0.60 | 0.88 |
| Quick Ratio | 0.54 | 0.54 | 0.52 | 0.62 | 0.68 | 0.54 | 0.64 | 0.56 | 0.51 | 0.39 | 0.61 |
| Cash Ratio | 0.16 | 0.16 | 0.17 | 0.25 | 0.35 | 0.18 | 0.29 | 0.20 | 0.18 | 0.15 | 0.26 |
| Asset Turnover | — | 0.54 | 0.53 | 0.40 | 0.49 | 0.23 | 0.22 | 0.32 | 0.53 | 0.54 | 0.47 |
| Inventory Turnover | 1.52 | 1.52 | 1.60 | 1.22 | 1.86 | 1.04 | 0.97 | 1.51 | 1.87 | 1.86 | 1.82 |
| Days Sales Outstanding | — | 86.54 | 69.79 | 113.58 | 77.40 | 160.77 | 148.82 | 102.40 | 74.87 | 68.83 | 74.48 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 6.1% | 5.0% | 3.5% | 3.7% | 6.0% | 5.6% | 5.4% | 4.2% | 5.2% | 5.6% | 6.4% |
| Payout Ratio | 43.9% | 43.9% | 94.9% | 56.7% | 28.6% | 91.2% | 69.2% | 85.1% | 108.4% | 255.0% | 531.8% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 13.9% | 11.3% | 3.7% | 6.5% | 6.8% | 6.1% | 7.8% | 4.9% | 4.8% | 2.2% | 1.2% |
| FCF Yield | 7.2% | 11.5% | 5.1% | 8.2% | 9.4% | 7.4% | 8.8% | 6.2% | 8.7% | 6.7% | 5.5% |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.1% | 0.1% |
| Total Shareholder Yield | 6.1% | 5.0% | 3.5% | 3.7% | 6.0% | 5.6% | 5.4% | 4.2% | 5.2% | 5.7% | 6.5% |
| Shares Outstanding | — | $1.0B | $2.1B | $2.1B | $2.0B | $1.6B | $2.0B | $2.0B | $2.0B | $2.0B | $2.0B |
Litigation and Regulatory Pricing
According to current market data, GSK trades at a trailing P/E of 7.15, which appears significantly compressed compared to peers like AstraZeneca and Eli Lilly, suggesting that investors are heavily discounting the equity for ongoing Zantac-related litigation risks and perceived pipeline execution challenges.
The low P/E multiple relative to the broader pharmaceutical sector implies that the market is pricing in a high probability of negative legal outcomes or a structural decline in the legacy portfolio. While the forward P/E of 14.51 suggests an expectation of earnings recovery, this valuation gap warrants caution as it may reflect a permanent re-rating rather than a temporary mispricing.
Based on reported financial statements, GSK's ROIC has struggled to gain momentum, fluctuating between 0.5% and 5.4% over the last ten quarters, which indicates that the company is currently failing to generate returns on invested capital that exceed its likely cost of capital.
The persistent low ROIC suggests that the capital-intensive nature of the vaccine and specialty medicine segments, combined with the costs of post-demerger restructuring, is suppressing shareholder value creation. Investors should monitor whether the recent focus on high-margin specialty assets can drive a sustained improvement in capital efficiency or if the current asset base remains structurally inefficient.
As reported in recent filings, GSK's cash conversion cycle remains highly erratic, swinging from -450 days to -37 days, which suggests that the company's reliance on large, lumpy government vaccine tenders creates significant instability in its ability to manage working capital efficiently.
The extreme volatility in the cash conversion cycle indicates that inventory and accounts receivable are heavily influenced by procurement timing rather than steady-state demand. This lack of predictability in working capital management complicates cash flow forecasting and may necessitate higher liquidity buffers than the current balance sheet provides.
According to the latest quarterly data, GSK maintains a current ratio of 0.79, which, when compared to historical norms and industry peers, suggests a relatively thin liquidity cushion that could leave the company vulnerable to sudden cash outflows from legal settlements or operational disruptions.
The consistent sub-1.0 current ratio implies that the company relies heavily on ongoing operational cash flow to meet short-term obligations. Given the lumpy nature of vaccine revenue, this liquidity profile warrants close monitoring to ensure that the company can maintain its dividend and R&D commitments during periods of lower cash inflow.
The P/E ratio is frequently misapplied to GSK, as it obscures the significant impact of non-recurring legal provisions and restructuring charges that distort net income, making the company appear cheaper or more expensive than its underlying cash-generating capability would otherwise suggest.
Analysts should prioritize EV/EBITDA or P/FCF to better assess the company's operational performance, as these metrics are less sensitive to the accounting noise generated by the ViiV Healthcare joint venture and legacy litigation provisions. Relying solely on P/E risks misinterpreting the company's true valuation by failing to account for the cash-heavy nature of its specialty medicine business model.
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying GSK stock.
GSK plc's current P/E ratio is 7.2x. The historical average is 27.3x.
GSK plc's current EV/EBITDA is 8.9x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 21.1x.
GSK plc's return on equity (ROE) is 39.4%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 61.5%.
Based on historical data, GSK plc is trading at a P/E of 7.2x. Compare with industry peers and growth rates for a complete picture.
GSK plc's current dividend yield is 6.09% with a payout ratio of 43.9%.
GSK plc has 72.4% gross margin and 25.5% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
GSK plc's Debt/EBITDA ratio is 1.7x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.