Gilead Sciences, Inc.

XTRA:GIS Stock Report

Market Cap: €108.5b

Gilead Sciences Valuation

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

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings 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.

Discounted Cash Flow
Simply Wall St
€231.76
Fair Value
62.8% undervalued intrinsic discount
26
Number of Analysts

Below Fair Value: GIS (€86.13) is trading below our estimate of fair value (€231.76)

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?

Key metric: As GIS is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for GIS. This is calculated by dividing GIS's market cap by their current earnings.
What is GIS's PE Ratio?
PE Ratio20.2x
EarningsUS$5.97b
Market CapUS$122.10b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for GIS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average63.6x
BIO3 Biotest
45xn/a€1.4b
MRK Merck KGaA
19.3x8.0%€53.6b
AMGN Amgen
24.1x12.0%US$146.3b
SRT3 Sartorius
165.9x28.4%€14.4b
GIS Gilead Sciences
20.2x11.1%€122.1b

Price-To-Earnings vs Peers: GIS is good value based on its Price-To-Earnings Ratio (20.2x) compared to the peer average (63.6x).

Price to Earnings Ratio vs Industry

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

6 CompaniesPrice / EarningsEstimated GrowthMarket Cap
GIS 20.2xIndustry Avg. 26.7xNo. of Companies6PE020406080100+
6 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: GIS is good value based on its Price-To-Earnings Ratio (20.2x) compared to the European Biotechs industry average (26.6x).

Price to Earnings Ratio vs Fair Ratio

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

GIS PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio20.2x
Fair PE Ratio25.7x

Price-To-Earnings vs Fair Ratio: GIS is good value based on its Price-To-Earnings Ratio (20.2x) compared to the estimated Fair Price-To-Earnings Ratio (25.7x).

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€86.13
€101.69
+18.1%
11.7%€123.76€81.33n/a26
May ’26€92.38
€101.12
+9.5%
12.1%€124.00€81.48n/a26
Apr ’26€104.16
€103.46
-0.7%
13.9%€129.67€75.95n/a25
Mar ’26€108.32
€104.27
-3.7%
11.3%€125.35€79.06n/a27
Feb ’26€93.73
€96.74
+3.2%
12.9%€120.13€70.15n/a27
Jan ’26€89.56
€95.41
+6.5%
12.6%€120.56€70.41n/a27
Dec ’25€88.05
€91.93
+4.4%
12.8%€118.13€65.21n/a28
Nov ’25€82.38
€81.31
-1.3%
13.9%€113.74€63.80n/a28
Oct ’25€75.12
€75.83
+0.9%
14.1%€108.02€62.18n/a27
Sep ’25€71.29
€75.06
+5.3%
14.1%€107.06€61.63n/a27
Aug ’25€71.00
€76.00
+7.0%
15.1%€109.67€61.75n/a27
Jul ’25€64.31
€77.42
+20.4%
14.2%€111.04€62.52n/a26
Jun ’25€58.33
€76.23
+30.7%
14.0%€107.85€61.76n/a26
May ’25€61.08
€78.28
+28.2%
13.0%€109.43€64.54€92.3827
Apr ’25€68.00
€79.40
+16.8%
12.6%€111.14€63.38€104.1626
Mar ’25€66.78
€81.29
+21.7%
12.5%€111.95€63.84€108.3227
Feb ’25€71.84
€82.88
+15.4%
11.9%€106.86€63.56€93.7327
Jan ’25€73.30
€81.66
+11.4%
11.9%€105.07€62.50€89.5627
Dec ’24€70.64
€83.36
+18.0%
11.7%€106.98€65.48€88.0527
Nov ’24€75.54
€85.69
+13.4%
11.2%€109.30€66.90€82.3826
Oct ’24€71.36
€85.52
+19.8%
10.8%€108.62€66.48€75.1226
Sep ’24€71.00
€84.10
+18.4%
10.3%€106.33€73.33€71.2924
Aug ’24€68.62
€82.84
+20.7%
10.1%€103.96€69.61€71.0025
Jul ’24€70.22
€85.53
+21.8%
9.8%€106.21€71.12€64.3125
Jun ’24€71.22
€86.31
+21.2%
9.8%€107.20€71.78€58.3325
May ’24€73.82
€84.00
+13.8%
8.8%€104.36€72.60€61.0825
AnalystConsensusTarget
Consensus Narrative from 26 Analysts
€102.24
Fair Value
15.8% undervalued intrinsic discount
26
Number of Analysts

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/05/09 01:03
End of Day Share Price 2025/05/09 00:00
Earnings2025/03/31
Annual Earnings2024/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Gilead Sciences, Inc. is covered by 69 analysts. 28 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
David ToungArgus Research Company
Brian SkorneyBaird
Ishan MajumdarBaptista Research