GILD Valuation

Gilead Sciences Inc

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114.230

+1.2(1.062%)1D

Overview
Forecast
Valuation
Earnings

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 13.92 is considered Fairly compared with the five-year average of 11.13. The fair price of Gilead Sciences Inc (GILD) is between 96.16 to 130.69 according to relative valuation methord.

Relative Value

Fair Zone

96.16-130.69

Current Price：114.23

Fair

13.92

Trailing

Forward

9.67

EV/EBITDA

Gilead Sciences Inc. (GILD) has a current EV/EBITDA of 9.67. The 5-year average EV/EBITDA is 8.34. The thresholds are as follows: Strongly Undervalued below 5.54, Undervalued between 5.54 and 6.94, Fairly Valued between 9.74 and 6.94, Overvalued between 9.74 and 11.14, and Strongly Overvalued above 11.14. The current Forward EV/EBITDA of 9.67 falls within the Historic Trend Line -Fairly Valued range.

11.84

EV/EBIT

Gilead Sciences Inc. (GILD) has a current EV/EBIT of 11.84. The 5-year average EV/EBIT is 9.60. The thresholds are as follows: Strongly Undervalued below 5.64, Undervalued between 5.64 and 7.62, Fairly Valued between 11.57 and 7.62, Overvalued between 11.57 and 13.55, and Strongly Overvalued above 13.55. The current Forward EV/EBIT of 11.84 falls within the Overvalued range.

4.87

Gilead Sciences Inc. (GILD) has a current PS of 4.87. The 5-year average PS is 3.55. The thresholds are as follows: Strongly Undervalued below 2.56, Undervalued between 2.56 and 3.06, Fairly Valued between 4.05 and 3.06, Overvalued between 4.05 and 4.55, and Strongly Overvalued above 4.55. The current Forward PS of 4.87 falls within the Strongly Overvalued range.

12.43

P/OCF

Gilead Sciences Inc. (GILD) has a current P/OCF of 12.43. The 5-year average P/OCF is 9.71. The thresholds are as follows: Strongly Undervalued below 6.12, Undervalued between 6.12 and 7.92, Fairly Valued between 11.51 and 7.92, Overvalued between 11.51 and 13.31, and Strongly Overvalued above 13.31. The current Forward P/OCF of 12.43 falls within the Overvalued range.

12.70

P/FCF

Gilead Sciences Inc. (GILD) has a current P/FCF of 12.70. The 5-year average P/FCF is 10.30. The thresholds are as follows: Strongly Undervalued below 7.54, Undervalued between 7.54 and 8.92, Fairly Valued between 11.68 and 8.92, Overvalued between 11.68 and 13.06, and Strongly Overvalued above 13.06. The current Forward P/FCF of 12.70 falls within the Overvalued range.

Gilead Sciences Inc (GILD) has a current Price-to-Book (P/B) ratio of 7.36. Compared to its 3-year average P/B ratio of 5.15 , the current P/B ratio is approximately 42.87% higher. Relative to its 5-year average P/B ratio of 4.78, the current P/B ratio is about 54.12% higher. Gilead Sciences Inc (GILD) has a Forward Free Cash Flow (FCF) yield of approximately 7.00%. Compared to its 3-year average FCF yield of 8.43%, the current FCF yield is approximately -16.95% lower. Relative to its 5-year average FCF yield of 9.48% , the current FCF yield is about -26.16% lower.

7.36

P/B

Median3y

5.15

Median5y

4.78

7.00

FCF Yield

Median3y

8.43

Median5y

9.48

Competitors Valuation Multiple

The average P/S ratio for GILD's competitors is 6.16, providing a benchmark for relative valuation. Gilead Sciences Inc Corp (GILD) exhibits a P/S ratio of 4.87, which is -21.01% above the industry average. Given its robust revenue growth of -0.28%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of GILD increased by 50.18% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 8.49 to 23.95.

The secondary factor is the Revenue Growth, contributed -0.28%to the performance.

Overall, the performance of GILD in the past 1 year is driven by P/E Change. Which is more unsustainable.

-0.28%

6.69B → 6.67B

Revenue Growth

-131.62%

-62.37 → 19.72

Margin Expansion

182.08%

8.49 → 23.95

P/E Change

50.18%