Gilead Sciences, Inc. (GILD)
Valuation Overview•Is Gilead Sciences, Inc. Overvalued or Undervalued?
Trading at a discount compared to peers, but the underlying intrinsic cash flows struggle to support the current price.
Moderate quality score of 56/100, reflecting stable operating margins and manageable leverage.
Wall Street forecasts a balanced outlook with consensus price targets near the current price.
Confirm your valuation thesis with live pattern overlays, key pivot levels, and AI trade plans.
Verdict: Average quality business weighed down by significant profitability concerns.
Wall Street sentiment is generally neutral alongside robust expected earnings growth. This is paired with healthy capital returns, anchored by a strong, well-covered dividend yield.
GILD demonstrates adequate business quality with stable profitability. This is paired with a moderately leveraged but stable balance sheet.
The company exhibits steady, low-single-digit revenue growth paired with highly explosive earnings growth (23.0% EPS 3Y CAGR). However, profitability remains a major concern with severely compressed operating margins (-4.9%).
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $7.8B | +2.4% | +2.6% | +3.6% | -1.0% | |
| EBITDA | -$10.0B | — | +15.3% | — | — | |
| Net Income | -$10.5B | +1672.9% | +22.8% | — | -7.3% | |
| EPS (Diluted) | $-8.45 | +1684.2% | +23.0% | +133.6% | -5.5% | |
| Free Cash Flow | $3.7B | -8.2% | +4.3% | +4.7% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 79.6% | 77.7% | 77.6% | 79.6% |
| Operating Margin | -4.9% | 24.5% | 27.4% | 32.2% |
| Net Margin | -10.6% | 17.2% | 18.2% | 20.2% |
| FCF Margin | 43.3% | 31.8% | 33.1% | 36.4% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q3'26Latest | $-7.25 | $-6.75 | +6.9% | ||
| Q2'26 | $1.91 | $2.03 | +6.3% | ||
| Q1'26 | $1.81 | $1.86 | +2.8% | ||
| Q4'25 | $2.13 | $2.47 | +16.0% | ||
| Q3'25 | $1.96 | $2.01 | +2.6% | ||
| Q2'25 | $1.78 | $1.81 | +1.7% | ||
| Q1'25 | $1.74 | $1.90 | +9.2% | ||
| Q4'24 | $1.53 | $2.02 | +32.0% |
Total return is +38.6% (1Y), outperforming the benchmark by +22.6%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +27.6% | +14.4% | — |
| 1Y | +38.6% | +22.6% | +2.9% |
| 3YCAGR | +29.3% | +7.0% | +12.6% |
| 5YCAGR | +18.7% | +6.2% | +21.5% |
| 10YCAGR | +8.3% | -5.4% | — |
The S&P 500 is at 31.6x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Gilead Sciences, Inc. (GILD) valuation, health, and returns.
Gilead Sciences, Inc. is estimated to be overvalued under our discounted cash flow framework. relative multiples indicate the stock is Cheap versus peers compared to industry peers. overvalued (implying -35.3% downside from DCF intrinsic value of $97.17)
Gilead Sciences, Inc. has multiple valuation anchors: DCF Intrinsic Value: $97.17 | Peer Relative Fair Value: $190.30 | Wall Street Analyst Target: $150.00 (implying -1.7% upside). A convergence of these signals offers higher conviction.
Gilead Sciences, Inc. displays fair financial health with a composite quality score of 56/100, supported by a Altman Z-Score of 4.3 (safe zone), Piotroski F-Score of 8/9, Return on Invested Capital (ROIC) of 23.1%.
Gilead Sciences, Inc. pays a 2.1% dividend yield, covered by a 47% payout ratio with 11 years of growth, supplemented by a 1.0% buyback yield.
Gilead Sciences, Inc.'s current growth trajectory is Stable. The company achieved +2.4% 1Y revenue growth and +1684.2% 1Y EPS growth, compared to its 3Y revenue CAGR of +2.6%.
Wall Street consensus is Buy based on 58 analysts, beating EPS expectations in 92% of recent quarters with a 10-quarter streak. The consensus price target represents a -1.7% change from current levels.
Investment risks for Gilead Sciences, Inc. include: -22.0% 1-year max drawdown. Volatility risk is characterized by a beta of 0.35x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.