Common Stock Valuation Ratios (Price Multiples)
Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).
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- Common-Size Income Statement
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Enterprise Value (EV)
- Enterprise Value to FCFF (EV/FCFF)
- Capital Asset Pricing Model (CAPM)
- Net Profit Margin since 2005
- Total Asset Turnover since 2005
- Price to Earnings (P/E) since 2005
- Price to Book Value (P/BV) since 2005
- Price to Sales (P/S) since 2005
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Current Valuation Ratios
Gilead Sciences Inc., current price multiples
| Gilead Sciences Inc. | AbbVie Inc. | Amgen Inc. | Bristol-Myers Squibb Co. | Danaher Corp. | Eli Lilly & Co. | Johnson & Johnson | Merck & Co. Inc. | Pfizer Inc. | Regeneron Pharmaceuticals Inc. | Thermo Fisher Scientific Inc. | Vertex Pharmaceuticals Inc. | Pharmaceuticals, Biotechnology & Life Sciences | Health Care | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||
| Current share price (P) | |||||||||||||||||
| No. shares of common stock outstanding | |||||||||||||||||
| Growth rate (g) | |||||||||||||||||
| Earnings per share (EPS) | |||||||||||||||||
| Next year expected EPS | |||||||||||||||||
| Operating profit per share | |||||||||||||||||
| Sales per share | |||||||||||||||||
| Book value per share (BVPS) | |||||||||||||||||
| Valuation Ratios (Price Multiples) | |||||||||||||||||
| Price to earnings (P/E) | |||||||||||||||||
| Price to next year expected earnings | |||||||||||||||||
| Price to operating profit (P/OP) | |||||||||||||||||
| Price to sales (P/S) | |||||||||||||||||
| Price to book value (P/BV) | |||||||||||||||||
Based on: 10-K (reporting date: 2025-12-31).
If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.
Historical Valuation Ratios (Summary)
Gilead Sciences Inc., historical price multiples
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Price to earnings (P/E) | ||||||
| Price to operating profit (P/OP) | ||||||
| Price to sales (P/S) | ||||||
| Price to book value (P/BV) |
Based on: 10-K (reporting date: 2025-12-31), 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).
The valuation ratios exhibit considerable fluctuation over the five-year period. Significant increases are observed in several ratios in 2024, followed by varying degrees of reversion in 2025. Overall, the ratios suggest a period of heightened valuation followed by a moderation, though remaining elevated compared to earlier years.
- Price to Earnings (P/E)
- The Price to Earnings ratio demonstrates substantial volatility. It increased from 12.36 in 2021 to 22.68 in 2022, decreased to 16.17 in 2023, then experienced a dramatic surge to 296.57 in 2024. In 2025, the ratio decreased to 21.54, still higher than the 2021 and 2022 levels but considerably lower than the peak in 2024. This pattern suggests a significant shift in investor expectations regarding earnings, followed by a correction.
- Price to Operating Profit (P/OP)
- The Price to Operating Profit ratio follows a similar trend to the P/E ratio, though less extreme. It rose from 7.76 in 2021 to 14.21 in 2022, then to 12.05 in 2023. A substantial increase occurred in 2024, reaching 85.65, before declining to 18.29 in 2025. This indicates a parallel change in valuation relative to operating profitability.
- Price to Sales (P/S)
- The Price to Sales ratio shows a consistent, though not linear, increase throughout the period. It moved from 2.85 in 2021 to 3.86 in 2022, 3.40 in 2023, 4.98 in 2024, and finally to 6.34 in 2025. This suggests a growing willingness of investors to pay a premium for each dollar of revenue generated.
- Price to Book Value (P/BV)
- The Price to Book Value ratio also increased over the period, mirroring the trends observed in the other ratios. It rose from 3.65 in 2021 to 4.90 in 2022, 4.01 in 2023, 7.36 in 2024, and 8.07 in 2025. This indicates an increasing valuation relative to the net asset value of the company, potentially reflecting growing intangible assets or anticipated future growth.
The pronounced increases in valuation multiples in 2024, followed by a partial retreat in 2025, warrant further investigation to understand the underlying drivers of these changes. The consistent increase in the Price to Sales and Price to Book Value ratios suggests a sustained shift in investor sentiment regarding the company’s growth prospects and asset quality.
Price to Earnings (P/E)
Gilead Sciences Inc., historical P/E calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Net income attributable to Gilead (in millions) | ||||||
| Earnings per share (EPS)2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/E ratio4 | ||||||
| Benchmarks | ||||||
| P/E Ratio, Competitors5 | ||||||
| AbbVie Inc. | ||||||
| Amgen Inc. | ||||||
| Bristol-Myers Squibb Co. | ||||||
| Danaher Corp. | ||||||
| Eli Lilly & Co. | ||||||
| Johnson & Johnson | ||||||
| Merck & Co. Inc. | ||||||
| Pfizer Inc. | ||||||
| Regeneron Pharmaceuticals Inc. | ||||||
| Thermo Fisher Scientific Inc. | ||||||
| Vertex Pharmaceuticals Inc. | ||||||
| P/E Ratio, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | ||||||
| P/E Ratio, Industry | ||||||
| Health Care | ||||||
Based on: 10-K (reporting date: 2025-12-31), 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).
1 Data adjusted for splits and stock dividends.
2 2025 Calculation
EPS = Net income attributable to Gilead ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Gilead Sciences Inc. Annual Report.
4 2025 Calculation
P/E ratio = Share price ÷ EPS
= ÷ =
5 Click competitor name to see calculations.
The price to earnings (P/E) ratio exhibited significant fluctuations over the five-year period. The share price demonstrated an overall increasing trend, though not consistently year-over-year, while earnings per share (EPS) experienced more pronounced volatility.
- P/E Ratio Trend
- The P/E ratio began at 12.36 in 2021, increased substantially to 22.68 in 2022, then decreased to 16.17 in 2023. A dramatic spike occurred in 2024, reaching 296.57, before declining significantly to 21.54 in 2025. This volatility suggests considerable shifts in investor sentiment and/or expectations regarding future earnings.
- Share Price and EPS Relationship
- From 2021 to 2022, the share price increased from US$61.35 to US$83.50, while EPS decreased from US$4.96 to US$3.68. This suggests the increase in share price was not driven by earnings growth during this period. The share price then decreased to US$73.55 in 2023 alongside a slight increase in EPS to US$4.55. The substantial increase in share price to US$114.31 in 2024 occurred concurrently with a dramatic decrease in EPS to US$0.39, explaining the exceptionally high P/E ratio observed that year. Finally, the share price continued to rise to US$147.64 in 2025, coinciding with a substantial recovery in EPS to US$6.86, resulting in a more moderate P/E ratio.
- Volatility and Potential Drivers
- The extreme P/E ratio in 2024 warrants further investigation. The significant decline in EPS, coupled with a rising share price, indicates a potential disconnect between market valuation and current earnings. This could be attributable to anticipated future growth, one-time events impacting earnings, or broader market conditions. The subsequent decrease in the P/E ratio in 2025, alongside a substantial increase in EPS, suggests a recalibration of market expectations.
Overall, the observed trends indicate a period of dynamic valuation. The P/E ratio’s fluctuations highlight the importance of considering both share price and EPS when assessing the company’s valuation.
Price to Operating Profit (P/OP)
Gilead Sciences Inc., historical P/OP calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Operating income (in millions) | ||||||
| Operating profit per share2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/OP ratio4 | ||||||
| Benchmarks | ||||||
| P/OP Ratio, Competitors5 | ||||||
| AbbVie Inc. | ||||||
| Amgen Inc. | ||||||
| Bristol-Myers Squibb Co. | ||||||
| Danaher Corp. | ||||||
| Eli Lilly & Co. | ||||||
| Johnson & Johnson | ||||||
| Merck & Co. Inc. | ||||||
| Pfizer Inc. | ||||||
| Regeneron Pharmaceuticals Inc. | ||||||
| Thermo Fisher Scientific Inc. | ||||||
| Vertex Pharmaceuticals Inc. | ||||||
| P/OP Ratio, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | ||||||
| P/OP Ratio, Industry | ||||||
| Health Care | ||||||
Based on: 10-K (reporting date: 2025-12-31), 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).
1 Data adjusted for splits and stock dividends.
2 2025 Calculation
Operating profit per share = Operating income ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Gilead Sciences Inc. Annual Report.
4 2025 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= ÷ =
5 Click competitor name to see calculations.
The Price to Operating Profit (P/OP) ratio for the observed period exhibits significant fluctuations. Initially, the ratio demonstrates an increase followed by a substantial surge, then a considerable decline, and finally a moderate increase. This pattern correlates with movements in both share price and operating profit per share.
- Overall Trend
- From 2021 to 2024, the P/OP ratio initially rose from 7.76 to a peak of 85.65 before decreasing to 18.29 in 2025. This indicates a period of increasing valuation relative to operating profit, followed by a dramatic shift and subsequent stabilization.
- 2021-2022
- The P/OP ratio increased from 7.76 in 2021 to 14.21 in 2022. This increase was driven by a larger percentage increase in share price (36.2%) compared to the decrease in operating profit per share (-25.5%).
- 2022-2023
- The P/OP ratio experienced a modest decrease from 14.21 in 2022 to 12.05 in 2023. While share price decreased (-11.9%), operating profit per share increased slightly (3.7%), partially offsetting the impact on the ratio.
- 2023-2024
- A substantial increase in the P/OP ratio occurred, rising from 12.05 in 2023 to 85.65 in 2024. This dramatic change was primarily due to a significant increase in share price (55.7%) coupled with a substantial decrease in operating profit per share (-78.7%).
- 2024-2025
- The P/OP ratio decreased considerably from 85.65 in 2024 to 18.29 in 2025. This decline was attributable to a continued increase in share price (29.1%) but, more significantly, a substantial increase in operating profit per share (508.3%).
The volatility in the P/OP ratio suggests that investor sentiment and expectations regarding future operating performance have played a significant role in valuation during this period. The large fluctuations warrant further investigation into the underlying factors driving both share price and operating profit.
Price to Sales (P/S)
Gilead Sciences Inc., historical P/S calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Product sales (in millions) | ||||||
| Sales per share2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/S ratio4 | ||||||
| Benchmarks | ||||||
| P/S Ratio, Competitors5 | ||||||
| AbbVie Inc. | ||||||
| Amgen Inc. | ||||||
| Bristol-Myers Squibb Co. | ||||||
| Danaher Corp. | ||||||
| Eli Lilly & Co. | ||||||
| Johnson & Johnson | ||||||
| Merck & Co. Inc. | ||||||
| Pfizer Inc. | ||||||
| Regeneron Pharmaceuticals Inc. | ||||||
| Thermo Fisher Scientific Inc. | ||||||
| Vertex Pharmaceuticals Inc. | ||||||
| P/S Ratio, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | ||||||
| P/S Ratio, Industry | ||||||
| Health Care | ||||||
Based on: 10-K (reporting date: 2025-12-31), 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).
1 Data adjusted for splits and stock dividends.
2 2025 Calculation
Sales per share = Product sales ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Gilead Sciences Inc. Annual Report.
4 2025 Calculation
P/S ratio = Share price ÷ Sales per share
= ÷ =
5 Click competitor name to see calculations.
The price-to-sales ratio exhibited a generally increasing trend over the five-year period. Initial values indicated a moderate valuation, which subsequently increased, particularly in the later years of the observed timeframe. Fluctuations were present, but the overall direction suggests a growing premium placed on each dollar of sales.
- Price-to-Sales Ratio (P/S)
- The P/S ratio began at 2.85 in 2021 and rose to 3.86 in 2022, representing a substantial increase. A slight decrease was then observed in 2023, with the ratio falling to 3.40. However, the ratio resumed its upward trajectory, reaching 4.98 in 2024 and further increasing to 6.34 in 2025. This indicates that investors were willing to pay progressively more for each dollar of the company’s sales revenue as time progressed.
The share price demonstrated a similar pattern of fluctuation and overall growth. While not a direct component of the P/S ratio calculation, the concurrent increase in share price supports the observation of increasing investor confidence or expectations. The sales per share remained relatively stable throughout the period, suggesting that the primary driver of the increasing P/S ratio was the increase in share price.
- Share Price Trend
- The share price increased from US$61.35 in 2021 to US$83.50 in 2022. A decline followed in 2023, with the price decreasing to US$73.55. Subsequently, the share price experienced significant growth, reaching US$114.31 in 2024 and US$147.64 in 2025. This upward trend, particularly in the final two years, aligns with the increasing P/S ratio.
- Sales per Share Stability
- Sales per share remained relatively consistent, fluctuating between US$21.54 and US$23.29 over the five-year period. The minor variations observed do not appear to significantly influence the overall trend in the P/S ratio, reinforcing the conclusion that share price movements were the dominant factor.
In summary, the observed trend suggests a growing investor valuation of the company, as reflected in the increasing P/S ratio. This increase was primarily driven by the rising share price, while sales per share remained comparatively stable.
Price to Book Value (P/BV)
Gilead Sciences Inc., historical P/BV calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Total Gilead stockholders’ equity (in millions) | ||||||
| Book value per share (BVPS)2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/BV ratio4 | ||||||
| Benchmarks | ||||||
| P/BV Ratio, Competitors5 | ||||||
| AbbVie Inc. | ||||||
| Amgen Inc. | ||||||
| Bristol-Myers Squibb Co. | ||||||
| Danaher Corp. | ||||||
| Eli Lilly & Co. | ||||||
| Johnson & Johnson | ||||||
| Merck & Co. Inc. | ||||||
| Pfizer Inc. | ||||||
| Regeneron Pharmaceuticals Inc. | ||||||
| Thermo Fisher Scientific Inc. | ||||||
| Vertex Pharmaceuticals Inc. | ||||||
| P/BV Ratio, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | ||||||
| P/BV Ratio, Industry | ||||||
| Health Care | ||||||
Based on: 10-K (reporting date: 2025-12-31), 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).
1 Data adjusted for splits and stock dividends.
2 2025 Calculation
BVPS = Total Gilead stockholders’ equity ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Gilead Sciences Inc. Annual Report.
4 2025 Calculation
P/BV ratio = Share price ÷ BVPS
= ÷ =
5 Click competitor name to see calculations.
The price to book value (P/BV) ratio for the period demonstrates a fluctuating trend. Initially, the ratio increased before exhibiting volatility and ultimately concluding with a notable rise. This analysis details the observed patterns and potential implications.
- Overall Trend
- The P/BV ratio began at 3.65 in 2021, increased to 4.90 in 2022, then decreased to 4.01 in 2023. A significant increase is then observed, rising to 7.36 in 2024 and further to 8.07 in 2025. This indicates increasing investor confidence in the net asset value relative to the market price over the latter part of the period.
- Share Price Movement
- The share price generally increased over the period, moving from US$61.35 in 2021 to US$147.64 in 2025. However, there was a decrease from US$83.50 in 2022 to US$73.55 in 2023, coinciding with the decrease in the P/BV ratio during that time. The substantial increase in share price from 2023 to 2025 likely contributed to the elevated P/BV ratio in those years.
- Book Value per Share (BVPS) Fluctuation
- Book value per share exhibited a more moderate trend. It increased from US$16.80 in 2021 to US$17.03 in 2022, then to US$18.33 in 2023. A decrease to US$15.52 occurred in 2024, followed by a recovery to US$18.29 in 2025. The BVPS trend does not fully explain the P/BV ratio fluctuations, suggesting market sentiment and expectations played a significant role.
- P/BV Ratio Interpretation
- A rising P/BV ratio generally suggests that investors are willing to pay more for each dollar of net asset value. The increase from 7.36 to 8.07 between 2024 and 2025 indicates a strengthening of this sentiment. The initial values of 3.65 and 4.90 could be interpreted as relatively conservative valuations, while the later values suggest a more optimistic outlook.
In conclusion, the P/BV ratio demonstrates a dynamic relationship with both share price and book value per share. The latter years of the period are characterized by a significant increase in the ratio, potentially reflecting positive market perception and growth expectations.