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Investment Value Analysis of Biomedical Listed Companies Based on Income Discount Model for GSK

Published: 19 April 2022 Publication History
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  • Abstract

    The stock market is in turmoil amid during the COVID-19 pandemic. Based on the data from financial report in the past few years, we investigate the performance of GlaxoSmithKline based on DDM-FCF-DS model in terms of financial reports, aiming at finding the best companies to invest. Moreover, the CAPM model is utilized to obtain the beta of the stock based on regression method. According to our results, the company is worth to invest under the COVID-19 period with well performance, which tallies well with the current stock prices. These results contribute to the stock investment value, which will help investor to adopt an optimal investment strategy.

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    Kai Zhang, and Dawei Su. Research on the bubble degree of Chinese stock market based on DDM Model. The financial aspect 2007 000.017(2007):51-53.
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    Xiangcheng Zhou. Research on the Value Evaluation of New Media Internet Enterprises based on income Method: Take netease as an example. Yunan University, 2018.
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    Kolmakov, V., & Polyakova, A. (2019). Regional free cash flow dataset: An approach to regional performance evaluation. Data in brief, 25, 104175. https://doi.org/10.1016/j.dib.2019.104175
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    Lindgren J. (2020). Efficient Markets and Contingent Claims Valuation: An Information Theoretic Approach. Entropy (Basel, Switzerland), 22(11), 1283. https://doi.org/10.3390/e22111283
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    Annual Report 2020 | GSK. https://www.gsk.com/en-gb/investors/corporate-reporting/annual-report-2020/.
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    Valuation and application of income discount model in Chinese securities market. https://www.xzbu.com/2/view-5487943.htm.
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    Jennergren, L. Peter. A Tutorial on the Discounted Cash Flow Model for Valuation of Companies. p. 55.
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    GlaxoSmithKline PLC (GSK) Income Statement - Yahoo Finance. https://finance.yahoo.com/quote/gsk/financials/.
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    Board of Governors of the Federal Reserve System (US). “Market Yield on U.S. Treasury Securities at 20-Year Constant Maturity.” FRED, Federal Reserve Bank of St. Louis, FRED, Federal Reserve Bank of St. Louis, 2 Jan. 1962. https://fred.stlouisfed.org/series/DGS20.
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    GlaxoSmithKline PLC (GSK) Valuation Measures & Financial Statistics. https://finance.yahoo.com/quote/GSK/key-statistics/.
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    New GSK to Deliver Step-Change in Growth and Performance over next Ten Years Driven by High-Quality Vaccines and Specialty Medicines Portfolio and Late-Stage Pipeline | GSK. https://www.gsk.com/en-gb/media/press-releases/new-gsk-to-deliver-step-change-in-growth-and-performance-over-next-ten-years/.
    [13]
    Adjusted results are a non-IFRS measure that may be considered in addition to, but not as a substitute for, or superior to, information presented in accordance with IFRS. 

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    IC4E '22: Proceedings of the 2022 13th International Conference on E-Education, E-Business, E-Management, and E-Learning
    January 2022
    626 pages
    ISBN:9781450387187
    DOI:10.1145/3514262
    Permission to make digital or hard copies of all or part of this work for personal or classroom use is granted without fee provided that copies are not made or distributed for profit or commercial advantage and that copies bear this notice and the full citation on the first page. Copyrights for components of this work owned by others than ACM must be honored. Abstracting with credit is permitted. To copy otherwise, or republish, to post on servers or to redistribute to lists, requires prior specific permission and/or a fee. Request permissions from [email protected]

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    Association for Computing Machinery

    New York, NY, United States

    Publication History

    Published: 19 April 2022

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    Author Tags

    1. Black-Scholes equation
    2. Dividend Discount Model
    3. GSK
    4. financial markets
    5. stock value
    6. valuation

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