ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
GlaxoSmithKline Pharmaceuticals ROE % Related Terms
GlaxoSmithKline Pharmaceuticals ROE % Historical Data
* 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.
For the Drug Manufacturers - General subindustry, GlaxoSmithKline Pharmaceuticals's ROE %, along with its competitors' market caps and ROE % 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.
GlaxoSmithKline Pharmaceuticals ROE % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, GlaxoSmithKline Pharmaceuticals's ROE % distribution charts can be found below:
* The bar in red indicates where GlaxoSmithKline Pharmaceuticals's ROE % falls into.
* 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.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
GlaxoSmithKline Pharmaceuticals (NSE:GLAXO) has a ROE % of 49.02% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on GlaxoSmithKline Pharmaceuticals and its competitors. This is 98% above median its historical median of 24.72. Over the past decade, GlaxoSmithKline Pharmaceuticals' ROE % has ranged from 4.71 to 81.85. According to the industry distribution chart, GlaxoSmithKline Pharmaceuticals ranks #32 out of 936 companies in the Drug Manufacturers industry, placing it in the top 3.4%.
Is GlaxoSmithKline Pharmaceuticals' ROE % too high?
GlaxoSmithKline Pharmaceuticals' current ROE % of 49.02% is 98% above median its 10-year median of 24.72. Over the past 10 years, this metric has ranged from a low of 4.71 to a high of 81.85. The Drug Manufacturers industry median ROE % is 5.87. GlaxoSmithKline Pharmaceuticals' value of 49.02% is 735.8% above this industry median. Based on the distribution chart, GlaxoSmithKline Pharmaceuticals ranks #32 out of 936 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, GlaxoSmithKline Pharmaceuticals has a GF Score™ of 73/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does GlaxoSmithKline Pharmaceuticals' ROE % compare to LLY and JNJ?
According to the Drug Manufacturers industry distribution chart, GlaxoSmithKline Pharmaceuticals ranks #32 out of 936 companies for ROE %. This places GlaxoSmithKline Pharmaceuticals in the top 3% of its industry — outperforming the majority of peers. The industry median ROE % is 5.87. GlaxoSmithKline Pharmaceuticals' value of 49.02% is 735.8% above this benchmark. Historically, GlaxoSmithKline Pharmaceuticals' own ROE % has ranged from 4.71 to 81.85 over the past decade. While the company's 10-year median is 24.72 vs. the industry median of 5.87, GlaxoSmithKline Pharmaceuticals has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for a Drug Manufacturers company?
The median ROE % among Drug Manufacturers companies is 5.87, based on 936 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. GlaxoSmithKline Pharmaceuticals's current ROE % of 49.02% is 735.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on GlaxoSmithKline Pharmaceuticals and its competitors. For the Drug Manufacturers industry, the median ROE % is 5.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. GlaxoSmithKline Pharmaceuticals's current ROE % is 49.02%, which is 98% above median its own 10-year median of 24.72. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is GlaxoSmithKline Pharmaceuticals stock overvalued right now?
Based on GuruFocus' analysis, GlaxoSmithKline Pharmaceuticals (NSE:GLAXO) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹2,614.23, compared to a current price of ₹2,354.80 — trading 9.9% below its estimated fair value. The current ROE % is 49.02%, which is 98% above median its 10-year median of 24.72 and 735.8% above the Drug Manufacturers industry median of 5.87. GlaxoSmithKline Pharmaceuticals' overall GF Score™ is 73/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For GlaxoSmithKline Pharmaceuticals (NSE:GLAXO), the current ROE % is 49.02% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is GlaxoSmithKline Pharmaceuticals (NSE:GLAXO) Overvalued in 2026?
Based on GuruFocus' analysis, GlaxoSmithKline Pharmaceuticals stock appears to be undervalued.
The current stock price of ₹2,354.80 is trading 9.9% below its estimated GF Value™ of ₹2,614.23.
GuruFocus considers GlaxoSmithKline Pharmaceuticals to be Modestly Undervalued.
Key valuation signals for NSE:GLAXO:
ROE %: 49.02% (98% above median its 10-year median of 24.72)
GF Value™: ₹2,614.23 vs. price of ₹2,354.80 (9.9% below fair value)
Industry Position: 735.8% above the Drug Manufacturers median (#32 of 936)
No single metric tells the full story. See the NSE:GLAXO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
GlaxoSmithKline Pharmaceuticals Business Description
GlaxoSmithKline Pharmaceuticals Ltd is engaged interalia, in the business of manufacturing, distributing and trading in pharmaceuticals. It is healthcare organisation focused on uniting science, technology and talent to get ahead of disease. The company's product portfolio comprises a broad range of General Medicines which includes anti-infectives, pain management, vitamins, minerals, nutritionals, hormones, dermatologicals, vaccines for both children and adults, and specialty medicines for respiratory and oncology. Its focused brands are Augmentin, Ceftum, Flutivate, T-bat, Betnovate, Neosporin, Tenovate, Physiogel, Calpol and Calpol T. The company has single reportable segment. The company has presence in India, and also Outside India. It generates majority of revenue from India.
73GF Score
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