We’ve recently updated our valuation analysis.

Gilead Sciences Valuation

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

[object Object] Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

GILD 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/Revenue4.7x
Enterprise Value/EBITDA10x
PEG Ratio2.9x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for GILD vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average21x
AMGN Amgen
22.2x8.4%US$152.0b
VRTX Vertex Pharmaceuticals
24.9x10.0%US$81.5b
REGN Regeneron Pharmaceuticals
15x0.7%US$80.7b
ABBV AbbVie
21.7x0.2%US$289.8b
GILD Gilead Sciences
33.1x11.5%US$110.3b

Price-To-Earnings vs Peers: GILD is expensive based on its Price-To-Earnings Ratio (33.1x) compared to the peer average (21x).


Price to Earnings Ratio vs Industry

How does GILD's PE Ratio compare vs other companies in the US Biotechs Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a9.2%
n/an/an/a

Price-To-Earnings vs Industry: GILD is expensive based on its Price-To-Earnings Ratio (33.1x) compared to the US Biotechs industry average (15.1x)


Price to Earnings Ratio vs Fair Ratio

What is GILD'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.

GILD PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio33.1x
Fair PE Ratio25.3x

Price-To-Earnings vs Fair Ratio: GILD is expensive based on its Price-To-Earnings Ratio (33.1x) compared to the estimated Fair Price-To-Earnings Ratio (25.3x).


Share Price vs Fair Value

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

Below Fair Value: GILD ($87.98) is trading below our estimate of fair value ($149.49)

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


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 GILD forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$87.98
US$82.25
-6.5%
12.2%US$105.00US$63.00n/a24
Nov ’23US$79.34
US$78.61
-0.9%
12.9%US$98.00US$63.00n/a24
Oct ’23US$61.69
US$71.20
+15.4%
11.1%US$90.00US$56.00n/a23
Sep ’23US$64.95
US$70.47
+8.5%
11.3%US$90.00US$56.00n/a23
Aug ’23US$59.60
US$70.17
+17.7%
11.3%US$90.00US$56.00n/a23
Jul ’23US$62.36
US$69.65
+11.7%
11.3%US$90.00US$56.00n/a23
Jun ’23US$64.77
US$70.18
+8.4%
11.2%US$90.00US$56.00n/a25
May ’23US$59.34
US$70.60
+19.0%
11.3%US$90.00US$56.00n/a24
Apr ’23US$59.67
US$72.19
+21.0%
11.4%US$90.00US$56.00n/a24
Mar ’23US$60.26
US$74.25
+23.2%
10.5%US$90.00US$62.00n/a24
Feb ’23US$68.47
US$76.96
+12.4%
11.5%US$100.00US$63.00n/a24
Jan ’23US$72.61
US$76.84
+5.8%
11.6%US$100.00US$63.00n/a25
Dec ’22US$68.93
US$76.70
+11.3%
11.9%US$100.00US$63.00US$87.9023
Nov ’22US$65.64
US$76.03
+15.8%
12.2%US$100.00US$63.00US$79.3422
Oct ’22US$68.56
US$76.21
+11.2%
12.0%US$100.00US$63.00US$61.6922
Sep ’22US$71.87
US$75.87
+5.6%
12.1%US$100.00US$61.00US$64.9525
Aug ’22US$68.29
US$75.72
+10.9%
11.9%US$100.00US$61.00US$59.6026
Jul ’22US$69.13
US$75.15
+8.7%
12.4%US$100.00US$60.00US$62.3626
Jun ’22US$65.32
US$75.15
+15.0%
12.4%US$100.00US$60.00US$64.7726
May ’22US$63.47
US$75.08
+18.3%
12.4%US$100.00US$60.00US$59.3426
Apr ’22US$66.44
US$74.82
+12.6%
12.6%US$100.00US$59.00US$59.6728
Mar ’22US$62.46
US$74.41
+19.1%
12.7%US$100.00US$59.00US$60.2627
Feb ’22US$65.10
US$72.89
+12.0%
13.0%US$100.00US$58.00US$68.4728
Jan ’22US$58.26
US$72.00
+23.6%
13.7%US$100.00US$58.00US$72.6126
Dec ’21US$61.12
US$73.52
+20.3%
14.2%US$105.00US$58.00US$68.9325

Analyst Forecast: Target price is lower than the current share price.


Discover undervalued companies