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 45th percentile in terms of potential gain offered. The most interesting components of our discounted cash flow analysis for Gilead Sciences Inc ended up being:
Gilead Sciences Inc's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than merely 0% of US stocks with positive free cash flow.
The weighted average cost of capital for the company is 7. This value is greater than just 14.08% stocks in the Healthcare sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Healthcare that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as GILD, try ICLR, NHC, REGN, ADMT, and SYNH.