QualityDipStocks / Health Care · Biotech
Gilead Sciences GILD
Not in a dip: trading near its 52-week high.
A quality company trading near our fair value estimate.
- Fair value est.
- $174.55+2%
- Market Value
- forming
- Off 52-wk high
- at the high
- Risk vs market
- Lowbeta 0.26
5 bullish · 4 bearish See why
Key levels
Every level vs today’s $170.68
- 52-wk lowlowest close, 1 year$118.15−30.8%
- 52-wk highhighest close, 1 year$170.68at the price
- PriceFri Oct 30 close$170.68you are here
- Fair value est.base case$174.55+2.3%
Fair value estimate
How the range is computed
Ten-year free-cash-flow DCF. Same 10-year free-cash-flow model as the base: discount rate 9.5% ±1 point and growth 3.0% ±2 points. Bear = 10.5% and 1.0%; bull = 8.5% and 5.0% (both fade to 3%). A model estimate from public filings, not a forecast of where the price will go.
Price sits inside the range.
What the price implies To be worth today’s price, GILD’s free cash flow would need to grow about 3% a year for five years; our estimate uses 3%.
Risk vs market
How risk vs market is measured
One year of daily returns (Oct 30 to Oct 30, 252 sessions). Beta = how much GILD moved for each 1% move in the S&P 500 (SPY); 1.0 moves with the market. Volatility is the yearly standard deviation of daily returns. Past behavior, not a forecast.
Has moved mostly independently of the market, but its own price swings are 2.1× the S&P 500’s (it moves on its own news).
- Beta vs S&P 500
- 0.26
- Volatility
- 27% vs 13% SPY
- Correlation SPY
- 0.12
- Correlation QQQ
- −0.01
Bull vs bear
Rule-based from the data on this page, strongest first. Not advice.
Top bullish points 5 of 5
ValuationFree-cash-flow yield of 6.5% (price / FCF 15.5×): $13.8B of free cash in the last 12 months.
ProfitabilityOperating margin widened to 34.0% in FY2025 from 28.0% in FY2023 (SEC filings).
Cash returnsFree cash flow grew 50% over the last 12 months vs the 12 months before.
ProfitabilityGross margin of 80%, above the 65% median for the 81 Health Care companies we cover.
QualityPasses all four of our quality checks: cash generation, returns on capital, growth and balance sheet.
Top bearish points 4 of 5
Balance sheetOperating income covers interest only -2.3× over the last 12 months.
ProfitabilityLost $3.9B over the last 12 months (net income, SEC filings).
ProfitabilityLoses money at the operating line: −8% operating margin over the last 12 months.
Balance sheetDebt is 2.0× shareholders’ equity.
Who’s talking about it
Notable investors, executives, analysts and public figures on Gilead Sciences in the last 48 hours. Headlines as published, each linked. Their words, not ours.
No notable mentions in the last 48 hours. Checked Nov 1, 9:09 PM ET.
Compare with peers
Closest in size in Biotech
All fundamentals
FCF yield 6.5% · ROE -22% · Sales +7%
Valuation
- P/E
- n/aloss over the last 12 months
- Price / FCF
- 15.5×
- FCF yield
- 6.5%
- EV / EBITDA
- n/anegative EBITDA
- Price / sales
- 6.89×
- Price / book
- 16.37×
- Market cap
- $214Bprice × diluted shares
- Enterprise value
- $233B
Growth
- Revenue, 12 months
- $31.0B
- Sales growth, 12 months
- +6.5%vs the 12 months before
- Sales growth, 3 yrs
- +2.6%/yrfrom FY2022
- Diluted EPS, 12 months
- −$3.13
- EPS growth, last FY
- n/an/m: EPS a year ago near zero
- Net income, 12 months
- −$3.9B
- Net income growth
- n/anot reported in its SEC filings
Profitability
- Gross margin
- 79.9%
- Operating margin
- −7.6%
- Net margin
- −12.5%
- FCF margin
- 44.5%
- Return on equity
- −22%
- Return on invested capital
- −6%
Balance sheet
- Cash & short-term inv.
- $6.4B
- Total debt
- $26.2B
- Net cash
- −$19.8B
- Debt / equity
- 2.01×
- Interest coverage
- -2.3×operating income / interest
Cash flow & returns
- Free cash flow, 12 months
- $13.8B
- FCF growth, 12 months
- +50%
- Dividend yield
- 1.92%$4.1B paid
- Payout ratio
- n/anot reported in its SEC filings
- Buybacks, 12 months
- $1.4B0.6% of market cap
- Share count, 1 year
- −0.2%diluted shares vs a year ago
- Stock-based comp
- $913M
Trailing 12 months to Sep 30, 2026; balance sheet at Sep 30, 2026. From Gilead Sciences’s SEC filings. Sparklines show up to six fiscal years. n/a means we don’t hold that number, with the reason. How each is computed.
Valuation details
DCF $174.55 · FCF value $296.59
Assumes 3.0% growth for 5 years (revenue grew 2.6% a year FY22–FY25; floored at 3%), fading to 3%; 9.5% discount rate, 3% terminal growth. FCF base $11.02 a share (trailing 12 months to Sep 30, 2026), from the 10-Q filed Oct 30, 2026.
Setup & signals
No setup armed
No setup armed, so there’s no trigger or stop to track yet. Reversal signal rules only arm once a company is in a dip.
Momentum & 52-week range
RSI 74 · 5 days +9.4%
The business
FCF $14.3B · Sales +10%
- Free cash flow, 12 months$14.3B
- Free-cash-flow yield7.0%
- Free-cash-flow margin46%
- Gross margin80%
- Operating margin38%
- Return on invested capital24%
- Return on equity−20%
- Sales growth (latest quarter vs year-ago quarter)+10%
Information only, not investment advice. Fair value estimates and talking points are rule-based model output from public data and can be wrong; stop levels are reference points, not orders. How every number is computed.
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