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 43th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. As for the metrics that stood out in our discounted cash flow analysis of Gilead Sciences Inc, consider:
The company's compound free cash flow growth rate over the past 5.5 years comes in at -0.03%; that's greater than just 24% of US stocks we're applying DCF forecasting to.
Gilead Sciences Inc's weighted average cost of capital (WACC) is 7%; for context, that number is higher than only 20.11% of tickers in our DCF set.
As a business, Gilead Sciences Inc experienced a tax rate of about 0% over the past twelve months; relative to its sector (Healthcare), this tax rate is higher than just 0% of stocks generating 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, DGX, EBS, FONR, and NVS.
Gilead Sciences, Inc. (GILD) Q2 2020 Earnings Conference Call July 30, 2020 4:00 PM ET Company Participants Douglas Maffei – Senior Director-Investor Relations Daniel O'Day – Chairman and Chief Executive Officer Johanna Mercier – Chief Commercial Officer Christi Shaw – Chief Executive Officer-Kite Andrew Dickinson – Chief Financial Officer Merdad...
Source: Barron's Gilead (GILD) reports quarterly earnings after-hours. Analysts expect revenue of $5.31 billion and EPS of $1.45. The revenue estimate implies a 4% decline Q/Q. Investors should focus on the following key items. Growth Continues To Stagnate I assumed growth was totally dead after sales from the company's HCV...