Gilead Sciences is a biopharmaceutical company, discovers, develops, and commercializes medicines in areas of unmet medical needs. The Company's primary areas of focus include HIV/AIDS, liver disease and serious cardiovascular and respiratory conditions.
GILD Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Gilead Sciences Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Gilead Sciences Inc ranked in the 33th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 56%. The most interesting components of our discounted cash flow analysis for Gilead Sciences Inc ended up being:
The stock's equity weight, or the proportion of capital from equity relative to debt, is 73. Its equity weight surpasses that of just 24.78% of free cash flow generating stocks in the Healthcare sector.
Its compound free cash flow growth rate, as measured over the past 5.5 years, is -0.12% -- higher than only 12.54% of stocks in our DCF forecasting set.
Gilead Sciences Inc's weighted average cost of capital (WACC) is 8%; for context, that number is higher than merely 14.21% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Gilead Sciences Inc? See BIO, MD, A, BAX, and JNJ.
Nelson Roberts Investment Advisors, an employee-owned investment advisory firm that provides asset and wealth management published its third-quarter 2020 Investor Letter – a copy of which can be downloaded here. The Firm’s focal point and target is to maintain a long term value and growth of assets over time. You can view the fund’s top 10 […]
Like a captain's wife searching the horizon for far too many anxious mornings, Gilead's (GILD) shareholders have been looking for signs that it has regained a revenue growth trajectory. In this article I will urge that for the first time in a very long time there are indeed causes for...
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