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GSK (LSE:GSK) Cyclically Adjusted PS Ratio : 2.17 (As of May. 13, 2024)


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What is GSK Cyclically Adjusted PS Ratio?

As of today (2024-05-13), GSK's current share price is £18.10. GSK's Cyclically Adjusted Revenue per Share for the quarter that ended in Mar. 2024 was £8.33. GSK's Cyclically Adjusted PS Ratio for today is 2.17.

The historical rank and industry rank for GSK's Cyclically Adjusted PS Ratio or its related term are showing as below:

LSE:GSK' s Cyclically Adjusted PS Ratio Range Over the Past 10 Years
Min: 1.57   Med: 2.1   Max: 2.72
Current: 2.16

During the past years, GSK's highest Cyclically Adjusted PS Ratio was 2.72. The lowest was 1.57. And the median was 2.10.

LSE:GSK's Cyclically Adjusted PS Ratio is ranked better than
50.07% of 745 companies
in the Drug Manufacturers industry
Industry Median: 2.16 vs LSE:GSK: 2.16

The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PS Ratio. The Cyclically Adjusted Revenue per Share is the average of the inflation adjusted revenue per share of a company over the past 10 years.

GSK's adjusted revenue per share data for the three months ended in Mar. 2024 was £1.790. Add all the adjusted revenue per share for the past 10 years together and divide 10 will get our Cyclically Adjusted Revenue per Share, which is £8.33 for the trailing ten years ended in Mar. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


GSK Cyclically Adjusted PS Ratio Historical Data

The historical data trend for GSK's Cyclically Adjusted PS Ratio can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

GSK Cyclically Adjusted PS Ratio Chart

GSK Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cyclically Adjusted PS Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.35 1.82 2.11 1.75 1.74

GSK Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Cyclically Adjusted PS Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.73 1.66 1.78 1.74 2.05

Competitive Comparison of GSK's Cyclically Adjusted PS Ratio

For the Drug Manufacturers - General subindustry, GSK's Cyclically Adjusted PS Ratio, along with its competitors' market caps and Cyclically Adjusted PS Ratio data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


GSK's Cyclically Adjusted PS Ratio Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, GSK's Cyclically Adjusted PS Ratio distribution charts can be found below:

* The bar in red indicates where GSK's Cyclically Adjusted PS Ratio falls into.



GSK Cyclically Adjusted PS Ratio Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted PS Ratio takes the Revenue per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/S calculation. Because it considers this 10-year average, it's often referred to as the CAPS Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PS Ratio.

GSK's Cyclically Adjusted PS Ratio for today is calculated as

Cyclically Adjusted PS Ratio=Share Price/ Cyclically Adjusted Revenue per Share
=18.10/8.33
=2.17

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

GSK's Cyclically Adjusted Revenue per Share for the quarter that ended in Mar. 2024 is calculated as:

For example, GSK's adjusted Revenue per Share data for the three months ended in Mar. 2024 was:

Adj_RevenuePerShare=Revenue per Share/CPI of Mar. 2024 (Change)*Current CPI (Mar. 2024)
=1.79/130.0000*130.0000
=1.790

Current CPI (Mar. 2024) = 130.0000.

GSK Quarterly Data

Revenue per Share CPI Adj_RevenuePerShare
201406 1.426 99.800 1.858
201409 1.451 100.000 1.886
201412 1.607 99.900 2.091
201503 1.446 99.600 1.887
201506 1.510 100.100 1.961
201509 1.570 100.200 2.037
201512 1.593 100.400 2.063
201603 1.592 100.400 2.061
201606 1.680 101.000 2.162
201609 1.923 101.500 2.463
201612 1.913 102.200 2.433
201703 1.877 102.700 2.376
201706 1.872 103.500 2.351
201709 1.987 104.300 2.477
201712 1.921 105.000 2.378
201803 1.826 105.100 2.259
201806 1.842 105.900 2.261
201809 2.034 106.600 2.480
201812 2.055 107.100 2.494
201903 1.924 107.000 2.338
201906 1.956 107.900 2.357
201909 2.343 108.400 2.810
201912 2.198 108.500 2.634
202003 2.268 108.600 2.715
202006 1.897 108.800 2.267
202009 2.144 109.200 2.552
202012 -0.249 109.400 -0.296
202103 1.841 109.700 2.182
202106 1.446 111.400 1.687
202109 1.635 112.400 1.891
202112 1.742 114.700 1.974
202203 1.768 116.500 1.973
202206 1.364 120.500 1.472
202209 1.915 122.300 2.036
202212 1.803 125.300 1.871
202303 1.702 126.800 1.745
202306 1.403 129.400 1.410
202309 1.981 130.100 1.979
202312 1.954 130.000 1.954
202403 1.790 130.000 1.790

Add all the adjusted revenue per share together and divide 10 will get our Cyclically Adjusted Revenue per Share.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.


GSK  (LSE:GSK) Cyclically Adjusted PS Ratio Explanation

Compared with the regular PS Ratio, which works poorly for cyclical businesses, the Cyclically Adjusted PS Ratio smoothed out the fluctuations of revenue during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted PS Ratio should give similar results to regular PS Ratio.


GSK Cyclically Adjusted PS Ratio Related Terms

Thank you for viewing the detailed overview of GSK's Cyclically Adjusted PS Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


GSK (LSE:GSK) Business Description

Industry
Address
980 Great West Road, Brentford, Middlesex, GBR, TW8 9GS
In the pharmaceutical industry, GSK ranks as one of the largest companies by total sales. The company wields its might across several therapeutic classes, including respiratory, cancer, and antiviral, as well as vaccines. GSK uses joint ventures to gain additional scale in certain markets like HIV.