Reasons for Purchasing GlaxoSmithKline

Technical Analysis

The graph above shows a technical analysis chart for the year. We can see that the price has
been coming down below 175 but now again it is on a rising trend. Therefore, we are optimistic
that in the next few weeks the price is going to cross the 185 mark that we bought it on.

Fundamental Analysis

P/E Ratio (TTM) 19.47 29.69 33.29

P/E High - Last 5 Yrs. 40.17 40.27 46.49

P/E Low - Last 5 Yrs. 17.66 22.94 24.03

Price to Sales 1.80 6.18 8.97

Price to Book -- 4.00 5.06

Price to Cash Flow 20.36 21.56 25.12

DIVIDENDS

Company industry sector

Dividend Yield 3.78 1.67 1.57

Dividend Yield - 5 Year Avg 2.80 2.12 1.97

Dividend 5 Year Growth Rate 18.43 4.40 5.39

GROWTH RATES
 Company industry sector

Sales 1 Yr. Ago 16.28 10.22 11.63

Sales - 5 Yr. Growth Rate 7.20 9.71 10.07

EPS - 5 Yr. Growth Rate 17.94 10.42 11.65

The PE ratio of the company compared to the industry and sector is low which means that the
company is undervalued and there are chances in the future that the company moves towards
its intrinsic value. Similarly, price to cash and book value are also lower. The dividend yield
for all the years has been high. Moreover, sales growth has been considerably higher than the
industry sales growth rate.