Gilead Sciences Valuation

Is GIS undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of GIS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: GIS (€60.48) is trading below our estimate of fair value (€171.65)

Significantly Below Fair Value: GIS is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for GIS?

Other financial metrics that can be useful for relative valuation.

GIS key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue3.7x
Enterprise Value/EBITDA8x
PEG Ratio4.6x

Price to Sales Ratio vs Peers

How does GIS's PS Ratio compare to its peers?

The above table shows the PS ratio for GIS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average6.3x
MOR MorphoSys
10.6x24.6%€2.6b
BIO3 Biotest
1.4x-4.8%€1.4b
MRK Merck KGaA
3.5x4.7%€72.9b
FYB Formycon
9.6x26.0%€744.4m
GIS Gilead Sciences
3x2.2%€82.4b

Price-To-Sales vs Peers: GIS is good value based on its Price-To-Sales Ratio (3x) compared to the peer average (6.3x).


Price to Earnings Ratio vs Industry

How does GIS's PE Ratio compare vs other companies in the DE Biotechs Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a30.4%
n/an/an/a
No. of CompaniesPS048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a30.4%
n/an/an/a
No more companies

Price-To-Sales vs Industry: GIS is good value based on its Price-To-Sales Ratio (3x) compared to the European Biotechs industry average (9.6x).


Price to Sales Ratio vs Fair Ratio

What is GIS's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

GIS PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio3x
Fair PS Ratio5.3x

Price-To-Sales vs Fair Ratio: GIS is good value based on its Price-To-Sales Ratio (3x) compared to the estimated Fair Price-To-Sales Ratio (5.3x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst GIS forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€60.48
€76.29
+26.1%
14.1%€107.84€61.75n/a26
May ’25€61.08
€78.28
+28.2%
13.0%€109.43€64.54n/a27
Apr ’25€68.00
€79.40
+16.8%
12.6%€111.14€63.38n/a26
Mar ’25€66.78
€81.29
+21.7%
12.5%€111.95€63.84n/a27
Feb ’25€71.84
€82.88
+15.4%
11.9%€106.86€63.56n/a27
Jan ’25€73.30
€81.66
+11.4%
11.9%€105.07€62.50n/a27
Dec ’24€70.64
€83.36
+18.0%
11.7%€106.98€65.48n/a27
Nov ’24€75.54
€85.69
+13.4%
11.2%€109.30€66.90n/a26
Oct ’24€71.36
€85.52
+19.8%
10.8%€108.62€66.48n/a26
Sep ’24€71.00
€84.10
+18.4%
10.3%€106.33€73.33n/a24
Aug ’24€68.62
€82.84
+20.7%
10.1%€103.96€69.61n/a25
Jul ’24€70.22
€85.53
+21.8%
9.8%€106.21€71.12n/a25
Jun ’24€71.22
€86.31
+21.2%
9.8%€107.20€71.78n/a25
May ’24€73.82
€84.00
+13.8%
8.8%€104.36€72.60€61.0825
Apr ’24€75.31
€85.95
+14.1%
9.7%€108.34€72.54€68.0022
Mar ’24€74.64
€86.19
+15.5%
10.4%€107.54€72.00€66.7823
Feb ’24€76.19
€80.86
+6.1%
12.4%€102.33€58.08€71.8424
Jan ’24€79.51
€79.86
+0.4%
13.0%€98.89€59.33€73.3024
Dec ’23€84.16
€78.14
-7.2%
12.2%€99.75€59.85€70.6424
Nov ’23€80.46
€79.59
-1.1%
12.9%€99.22€63.78€75.5424
Oct ’23€64.17
€71.04
+10.7%
11.1%€89.79€55.87€71.3623
Sep ’23€64.60
€70.34
+8.9%
11.3%€89.84€55.90€71.0023
Aug ’23€58.24
€68.64
+17.9%
11.3%€88.03€54.77€68.6223
Jul ’23€59.43
€65.90
+10.9%
11.3%€85.16€52.99€70.2223
Jun ’23€60.53
€65.66
+8.5%
11.2%€84.20€52.39€71.2225
May ’23€56.98
€66.95
+17.5%
11.3%€85.34€53.10€73.8224

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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