Stock fact sheet · data as of
GSK plc (GSK): fair value, margin of safety and Wheel Score
Healthcare · Drug Manufacturers - General · United Kingdom · ADR · Defensive
Is GSK undervalued?
GSK plc (GSK) closed at 49.02 on 16 Oct 2026, 12% above the GLS average fair value of 43.72. Only 4 of the 9 models that produced a number value the shares above the current price. The margin of safety is negative, so the stock fails the "below fair value" rule of the Sunday Scan; a premium of this size is common for companies whose growth the models are conservative about.
There is a wide gap between GLS Growth (9.33) and DCF (114.64). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.
The nightly engine files GSK under Defensive: a low beta, a dividend and positive earnings.
Nine valuation models for GSK
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 114.64 | +134% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 10.90 | -78% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 59.50 | +21% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 16.88 | -66% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 9.33 | -81% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 71.82 | +47% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 55.01 | +12% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 20.01 | -59% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 35.41 | -28% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -13.74 | -128% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 60.00 | +22% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
GSK plc scores 8 of 9 on the Piotroski F-score, the nine yes/no tests of profitability, leverage and efficiency on the latest annual accounts - a strong reading that passes the Sunday Scan's "6 or more" rule with room to spare. A GLS Moat score of 4.2/10 is a weak reading: the ten-year history the score grades (revenue, EPS, book value, margins, cash flow, share count, ROIC) has not been steady, so the Moat part of the Wheel Score contributes little.
Returns on capital are high - ROIC 16.8%, ROE 35.0%, ROA 9.4% - with debt at 1.08 times equity and a free-cash-flow yield of 7.8%.
The dividend yield is 3.68% at a payout ratio of 55%; for a wheel trader holding assigned shares the dividend adds to the covered-call premium, and the ex-dividend date is worth knowing before a call is sold. Revenue comes mainly from Sub Total 100% (fiscal year FY2022).
Institutional ownership scores 2/10, insider activity 5/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 8 / 9 | ROIC | 16.8% |
|---|---|---|---|
| GLS Moat | 4.2 / 10 | ROE | 35.0% |
| Debt / equity | 1.08 | ROA | 9.4% |
| Free-cash-flow yield | 7.8% | Payout ratio | 55% |
| Institutions | 2 / 10 | Insiders · Congress | 5 · 5 / 10 |
Wheel Score 70: Good
With a Wheel Score of 70 - the Good band - GSK plc clears the Sunday Scan's "70 or higher" rule. The parts: Value 7/25, Health 18/20, Moat 6/15, Premium 18/20, Stability 20/20; Value (7/25) scores lowest.
Implied volatility is 33% on the near-the-money contracts 20-60 days out: some premium, but under the 35-60% range the Wheel Score pays full marks for (18 of 20 points). The option chain is deep: 62,993 contracts of open interest across all expiries, which means tight fills at most strikes.
Volume runs at 6.1M shares a day on a market cap of $98.2B, with a beta of 0.28 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score gives that 20 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 7 / 25 | -12% margin of safety | |
| Health | 18 / 20 | Piotroski 8/9 | |
| Moat | 6 / 15 | moat 4.2/10 | |
| Premium | 18 / 20 | implied volatility 33% | |
| Stability | 20 / 20 | 6.1M shares/day, $98.2B cap, beta 0.28 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
GSK plc reports earnings on 28 Oct 2026 (before the open) - inside the 14-day window the Sunday Scan avoids, because a put sold now would carry the report's gap risk.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Drug Manufacturers - General
The 12 companies below are the closest to GSK plc by market cap within the Drug Manufacturers - General industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| SNY Sanofi | 39.77 | 63.49 | +37% | 86Prime | $97.4B |
| BMY Bristol-Myers Squibb Company | 60.57 | 76.74 | +21% | 86Prime | $123.7B |
| PFE Pfizer Inc. | 29.21 | 19.78 | -48% | 58Fair | $166.5B |
| NVO Novo Nordisk A/S | 39.22 | 173.67 | +77% | 91Prime | $174.9B |
| GILD Gilead Sciences, Inc. | 157.37 | 138.25 | -14% | 45Weak | $195.1B |
| AMGN Amgen Inc. | 434.03 | 330.55 | -31% | 65Good | $234.7B |
| AZN AstraZeneca PLC | 166.68 | 184.44 | +10% | 85Prime | $258.5B |
| BIIB Biogen Inc. | 235.35 | 197.03 | -19% | 58Fair | $34.8B |
| NVS Novartis AG | 150.38 | 144.89 | -4% | 68Good | $285.8B |
| MRK Merck & Co., Inc. | 145.35 | 69.51 | -109% | 59Fair | $358.6B |
| ABBV AbbVie Inc. | 283.38 | 103.06 | -175% | 65Good | $500.8B |
| JNJ Johnson & Johnson | 253.28 | 139.73 | -81% | 54Fair | $610.4B |
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A free GLS Equity account gets you nightly fair value and the Wheel Score on ~7,400 US stocks, a watchlist, the scanner preview and the Sunday Scan - the same eight-rule screen, emailed every week. Pro adds the full put and call scanners, unlimited watchlists with alerts and the trade journal.
Start free See the Sunday ScanQuestions about GSK
Is GSK undervalued right now?
No: at 49.02 the stock trades 12% above the GLS average fair value of 43.72 (data as of 16 Oct 2026). The margin of safety is negative.
What is the Wheel Score of GSK and what does it mean?
GSK scores 70 out of 100 (Good). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for GSK?
43.72 per share as of 16 Oct 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does GSK plc report earnings next?
The next earnings report is due on 28 Oct 2026 (before the open), 12 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does GSK have listed options, and how liquid are they?
Yes. The nightly snapshot found 594 listed contracts with 62,993 open interest across all expiries and implied volatility of 33% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.