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Gilead Sciences, Inc. — Intrinsic Value & Fair Price

GILD
NASDAQHealthcareDrug Manufacturers - GeneralCIK 0000882095gilead.comAbout GILD
Last close · Oct 16, 2026156.19−1.18 (−0.75%)
Market cap$193.7B
Model value · DCF · Perpetuity growth · 5y
186.82
Gilead Sciences closed at $156.19 — undervalued by 16% vs model.
111.96the model's range551.88

DCF · Perpetuity growth · 5y leads for a mature, steady company — positive operating income and three years of positive free cash flow. From a five-year discounted cash flow.

Other models
71.03 – 205.77
Wall St. target
158.00 1% below
Below model, 1y
9 of 21 days

Price and model value

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What the marks mean
Daily close

Dividends

Quarterly · as of Oct 16, 2026
Yield, trailing 12 months
2.08%
Past 2 years
low 2.03%high 4.16%
Dividends per share, a year at a time
$2.81Sep ’21$2.90Sep ’22$2.98Sep ’23$3.06Sep ’24$3.14Sep ’25$3.25TTM
Dividends / free cash flow, FY2025
42.3%
Raised
10+ years in a row
Growth, 5 yrs
3.0% a year
Last change
+3.8% · Mar 2026
Every payment, with ex-dates · latest $0.82, paid Sep 29, 2026

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How it is valued

Valued asMature & stable
Low/slowing growth (~4% recent)High profitability (29% net margin)Pays dividendsHighly cyclical earnings
What growth the price implies: the reverse DCF

Key figures

FY2025 · chosen for mature companies
P/E
23.0×
EV / EBITDA
15.5×
FCF yield
4.9%
Dividend yield, TTM
2.08%
Beta
0.33
Cost of capital (WACC)
7.04%
Full financials

Analyst actions

third-party, quoted
10-12Raymond James · target164.00
10-08RBC Capital · target126.00
10-07Truist Financial · target158.00
07-21Leerink Partners · “Market Perform” from “Outperform”downgrade
Ratings, targets and estimates

Comparable companies

by business, not by industry label
2 more companies list GILD as a comparable

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About Gilead Sciences

Gilead Sciences, Inc. is a global biopharmaceutical enterprise, with operations spanning the United States, Europe, and numerous international markets. Its core mission involves discovering, developing, and commercializing innovative medications to address critical health needs. The company's extensive product portfolio encompasses treatments for a variety of severe conditions. For HIV/AIDS, it supplies key therapies such as Biktarvy, Genvoya, Descovy, Odefsey, Truvada, Complera/Eviplera, Stribild, and Atripla. In response to the 2019 coronavirus pandemic, Gilead provides Veklury, an injectable drug for intravenous administration. Its offerings for liver diseases include Epclusa, Harvoni, Vosevi, Vemlidy, and Viread. Furthermore, Gilead assists patients battling hematological disorders, various cancers, and those undergoing cell therapy, through products like Yescarta, Tecartus, Trodelvy, and Zydelig. Other specialized medicines include Letairis, an oral drug for pulmonary arterial hypertension; Ranexa, also an oral medication, for chronic angina; and AmBisome, a liposomal formulation designed to combat serious invasive fungal infections. Gilead Sciences, Inc. actively engages in collaboration agreements with a diverse range of partners to advance its therapeutic pipeline. These include Arcus Biosciences, Inc., Pionyr Immunotherapeutics Inc., Tizona Therapeutics, Inc., Tango Therapeutics, Inc., Jounce Therapeutics, Inc., Galapagos NV, Janssen Sciences Ireland Unlimited Company, Japan Tobacco, Inc., Gadeta B.V., Bristol-Myers Squibb Company, Dragonfly Therapeutics, Inc., and Merck & Co, Inc. The company was founded in 1987 and its corporate headquarters are situated in Foster City, California.

CEO
Daniel O'Day
Headquarters
Foster City, CA
Employees
17,000
IPO
1992-01-22
Full company profile

Model estimates for research reference only, not investment advice. Every model rests on assumptions that may not match what happens; the formulas are in how we value a stock.