GILD Valuation

Gilead Sciences Inc

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124.430

-0.77(-0.615%)1D

GILD Relative Valuation

GILD's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, GILD is overvalued; if below, it's undervalued.

Historical Valuation

Gilead Sciences Inc (GILD) is now in the Fair zone, suggesting that its current forward PE ratio of 14.54 is considered Fairly compared with the five-year average of 11.44. The fair price of Gilead Sciences Inc (GILD) is between 92.64 to 128.69 according to relative valuation methord.

Relative Value

Fair Zone

92.64-128.69

Current Price：125.20

Fair

14.75

Trailing

Forward

9.65

EV/EBITDA

Gilead Sciences Inc. (GILD) has a current EV/EBITDA of 9.65. The 5-year average EV/EBITDA is 8.48. The thresholds are as follows: Strongly Undervalued below 5.84, Undervalued between 5.84 and 7.16, Fairly Valued between 9.80 and 7.16, Overvalued between 9.80 and 11.13, and Strongly Overvalued above 11.13. The current Forward EV/EBITDA of 9.65 falls within the Historic Trend Line -Fairly Valued range.

11.99

EV/EBIT

Gilead Sciences Inc. (GILD) has a current EV/EBIT of 11.99. The 5-year average EV/EBIT is 9.85. The thresholds are as follows: Strongly Undervalued below 6.06, Undervalued between 6.06 and 7.95, Fairly Valued between 11.75 and 7.95, Overvalued between 11.75 and 13.64, and Strongly Overvalued above 13.64. The current Forward EV/EBIT of 11.99 falls within the Overvalued range.

125.20

Gilead Sciences Inc. (GILD) has a current PS of 125.20. The 5-year average PS is 4.86. The thresholds are as follows: Strongly Undervalued below -19.13, Undervalued between -19.13 and -7.14, Fairly Valued between 16.86 and -7.14, Overvalued between 16.86 and 28.86, and Strongly Overvalued above 28.86. The current Forward PS of 125.20 falls within the Strongly Overvalued range.

13.48

P/OCF

Gilead Sciences Inc. (GILD) has a current P/OCF of 13.48. The 5-year average P/OCF is 9.90. The thresholds are as follows: Strongly Undervalued below 6.17, Undervalued between 6.17 and 8.04, Fairly Valued between 11.76 and 8.04, Overvalued between 11.76 and 13.63, and Strongly Overvalued above 13.63. The current Forward P/OCF of 13.48 falls within the Overvalued range.

12.35

P/FCF

Gilead Sciences Inc. (GILD) has a current P/FCF of 12.35. The 5-year average P/FCF is 10.42. The thresholds are as follows: Strongly Undervalued below 7.59, Undervalued between 7.59 and 9.00, Fairly Valued between 11.83 and 9.00, Overvalued between 11.83 and 13.25, and Strongly Overvalued above 13.25. The current Forward P/FCF of 12.35 falls within the Overvalued range.

Gilead Sciences Inc (GILD) has a current Price-to-Book (P/B) ratio of 7.12. Compared to its 3-year average P/B ratio of 5.46 , the current P/B ratio is approximately 30.36% higher. Relative to its 5-year average P/B ratio of 4.93, the current P/B ratio is about 44.23% higher. Gilead Sciences Inc (GILD) has a Forward Free Cash Flow (FCF) yield of approximately 0.06%. Compared to its 3-year average FCF yield of 7.94%, the current FCF yield is approximately -99.26% lower. Relative to its 5-year average FCF yield of 9.23% , the current FCF yield is about -99.36% lower.

7.22

P/B

Median3y

5.46

Median5y

4.93

0.06

FCF Yield

Median3y

7.94

Median5y

9.23

Competitors Valuation Multiple

The average P/S ratio for GILD's competitors is 153.40, providing a benchmark for relative valuation. Gilead Sciences Inc Corp (GILD) exhibits a P/S ratio of 125.20, which is -18.38% above the industry average. Given its robust revenue growth of -2.65%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Neurocrine Biosciences Inc

144.16

27.78%

14.37B

Performance Decomposition

Market capitalization of GILD increased by 36.37% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 16.61 to 41.55.

The secondary factor is the Revenue Growth, contributed -2.65%to the performance.

Overall, the performance of GILD in the past 1 year is driven by Margin Expansion. Which is more sustainable.

-2.65%

7.55B → 7.35B

Revenue Growth

150.15%

16.61 → 41.55

Margin Expansion

-111.13%

-175.14 → 19.49

P/E Change

36.37%