Price to FCFE (P/FCFE)
Free Cash Flow to Equity (FCFE)
Gilead Sciences Inc., FCFE calculation
US$ in millions
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
The financial data reflects fluctuations in both net cash provided by operating activities and free cash flow to equity (FCFE) over the five-year period analyzed.
- Net Cash Provided by Operating Activities
- The net cash generated from operating activities started at $8,168 million in 2020, increased significantly to $11,384 million in 2021, and then declined to $9,072 million in 2022. This downward trend continued into 2023, reaching a low of $8,006 million, before rising again to $10,828 million in 2024. Overall, the trend indicates substantial volatility, with a peak in 2021 followed by a two-year decline and a partial recovery by 2024.
- Free Cash Flow to Equity (FCFE)
- The FCFE value experienced a steep drop from $13,202 million in 2020 to $6,055 million in 2021, representing a remarkable decrease in the company's free cash flow available to equity holders. Subsequently, FCFE increased gradually to $6,844 million in 2022 and $7,151 million in 2023, showing some recovery momentum. In 2024, FCFE surged to $11,799 million, approaching the levels observed at the beginning of the period. This pattern suggests an initial compression of free cash flow followed by a notable rebound.
Comparing the two cash flow indicators reveals that the trends do not move entirely in tandem; the net cash from operations peaks earlier and experiences more pronounced short-term declines, whereas the FCFE shows a sharper initial drop and a more sustained recovery pattern. This distinction may reflect differences in capital expenditures, financing activities, or other factors influencing equity cash flow beyond operational performance.
Price to FCFE Ratio, Current
Gilead Sciences Inc., current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | 1,243,929,121 |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in millions) | 11,799) |
| FCFE per share | 9.49 |
| Current share price (P) | 111.75 |
| Valuation Ratio | |
| P/FCFE | 11.78 |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| AbbVie Inc. | 13.33 |
| Amgen Inc. | 26.14 |
| Bristol-Myers Squibb Co. | 3.97 |
| Danaher Corp. | 39.95 |
| Eli Lilly & Co. | 58.44 |
| Johnson & Johnson | 12.56 |
| Merck & Co. Inc. | 9.96 |
| Pfizer Inc. | 53.92 |
| Regeneron Pharmaceuticals Inc. | 16.04 |
| Thermo Fisher Scientific Inc. | 32.93 |
| Vertex Pharmaceuticals Inc. | — |
| P/FCFE, Sector | |
| Pharmaceuticals, Biotechnology & Life Sciences | 18.57 |
| P/FCFE, Industry | |
| Health Care | 17.04 |
Based on: 10-K (reporting date: 2024-12-31).
1 Click competitor name to see calculations.
If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.
Price to FCFE Ratio, Historical
Gilead Sciences Inc., historical P/FCFE calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 1,245,346,062 | 1,245,774,616 | 1,247,105,154 | 1,253,886,724 | 1,256,593,156 | |
| Selected Financial Data (US$) | ||||||
| Free cash flow to equity (FCFE) (in millions)2 | 11,799) | 7,151) | 6,844) | 6,055) | 13,202) | |
| FCFE per share3 | 9.47 | 5.74 | 5.49 | 4.83 | 10.51 | |
| Share price1, 4 | 114.31 | 73.55 | 83.50 | 61.35 | 62.79 | |
| Valuation Ratio | ||||||
| P/FCFE5 | 12.07 | 12.81 | 15.22 | 12.70 | 5.98 | |
| Benchmarks | ||||||
| P/FCFE, Competitors6 | ||||||
| AbbVie Inc. | 13.57 | 17.37 | 22.66 | 18.76 | 13.16 | |
| Amgen Inc. | 25.50 | 4.71 | 8.32 | 13.52 | 11.06 | |
| Bristol-Myers Squibb Co. | 4.74 | 7.52 | 22.85 | 16.17 | 7.80 | |
| Danaher Corp. | 40.83 | 53.08 | 32.04 | 20.75 | 44.62 | |
| Eli Lilly & Co. | 64.93 | 75.06 | 60.51 | 35.17 | 36.62 | |
| Johnson & Johnson | 12.67 | 24.31 | 16.73 | 23.28 | 15.60 | |
| Merck & Co. Inc. | 11.32 | 24.48 | 22.40 | 18.72 | 17.85 | |
| Pfizer Inc. | 55.28 | 3.82 | 10.56 | 8.88 | — | |
| Regeneron Pharmaceuticals Inc. | 21.27 | 26.52 | 19.29 | 10.35 | 13.30 | |
| Thermo Fisher Scientific Inc. | 41.23 | 31.16 | 27.98 | 13.44 | 18.58 | |
| Vertex Pharmaceuticals Inc. | — | 33.45 | 19.91 | 26.08 | 18.46 | |
| P/FCFE, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 19.99 | 16.91 | 19.28 | 16.49 | 17.09 | |
| P/FCFE, Industry | ||||||
| Health Care | 18.69 | 17.15 | 18.11 | 18.05 | 17.25 | |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 Data adjusted for splits and stock dividends.
3 2024 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 11,799,000,000 ÷ 1,245,346,062 = 9.47
4 Closing price as at the filing date of Gilead Sciences Inc. Annual Report.
5 2024 Calculation
P/FCFE = Share price ÷ FCFE per share
= 114.31 ÷ 9.47 = 12.07
6 Click competitor name to see calculations.
- Share Price Trends
- The share price exhibited fluctuations over the analyzed period. It initially decreased slightly from $62.79 at the end of 2020 to $61.35 in 2021. Subsequently, there was a notable increase to $83.50 in 2022, followed by a decline to $73.55 in 2023. The most significant rise occurred in 2024, with the share price reaching $114.31.
- Free Cash Flow to Equity (FCFE) Per Share
- FCFE per share demonstrated variability across the years. Starting from $10.51 in 2020, it sharply decreased to $4.83 in 2021. Thereafter, it showed modest growth in 2022 and 2023, reaching $5.49 and $5.74 respectively. In 2024, FCFE per share increased substantially to $9.47, nearing the level observed in 2020.
- Price-to-FCFE (P/FCFE) Ratio
- The P/FCFE ratio indicates valuation trends relative to the company's FCFE per share. It more than doubled from 5.98 in 2020 to 12.7 in 2021, and further increased to a peak of 15.22 in 2022. Afterward, it slightly decreased to 12.81 in 2023 and continued to decrease marginally to 12.07 in 2024. This trend suggests a heightened valuation relative to free cash flow per share during the mid-period, with some correction towards the end.
- Overall Observations
- The data reveal a period of volatility in both the share price and free cash flow per share, with notable fluctuations particularly between 2020 and 2022. Despite FCFE per share declining sharply in 2021, the share price did not decline proportionally, suggesting a possible market optimism or other valuation factors influencing the stock price. The P/FCFE ratio's increase in the early years followed by stabilization indicates changing market perceptions of value linked to the company's cash flow generation. The significant increase in share price and FCFE per share in 2024 points towards improved financial performance and investor confidence in the latest period.