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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Gilead Sciences Inc. pages available for free this week:
- Common-Size Balance Sheet: Assets
- Analysis of Short-term (Operating) Activity Ratios
- Enterprise Value to EBITDA (EV/EBITDA)
- Capital Asset Pricing Model (CAPM)
- Selected Financial Data since 2005
- Net Profit Margin since 2005
- Return on Equity (ROE) since 2005
- Price to Earnings (P/E) since 2005
- Analysis of Revenues
- Analysis of Debt
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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 operating profit (P/OP) | |||||||||||||||||
| Price to sales (P/S) | |||||||||||||||||
| Price to book value (P/BV) | |||||||||||||||||
Based on: 10-K (reporting date: 2024-12-31).
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, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| 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: 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).
- Price to Earnings (P/E) Ratio
- The P/E ratio exhibited significant volatility over the analyzed period. In 2020, the ratio was exceptionally high at 641.48, followed by a substantial decrease to 12.36 in 2021. It then increased again to 22.68 in 2022 before declining to 16.17 in 2023. In 2024, there was a sharp surge to 296.57. This irregular pattern suggests an unstable relationship between market price and earnings, possibly due to fluctuations in reported earnings or market sentiment.
- Price to Operating Profit (P/OP) Ratio
- The P/OP ratio mirrored the volatility seen in the P/E ratio but with generally lower amplitude. Starting at 19.38 in 2020, it dropped to 7.76 in 2021, rose to 14.21 in 2022, then declined to 12.05 in 2023. In 2024, the ratio sharply increased to 85.65. This indicates fluctuating market valuation relative to operating profit, with an evident increase in market optimism or a decline in operating profit in the final year.
- Price to Sales (P/S) Ratio
- The P/S ratio showed moderate fluctuations over the period. It decreased from 3.24 in 2020 to 2.85 in 2021, then increased to 3.86 in 2022, dropped slightly to 3.4 in 2023, and rose again to 4.98 in 2024. This trend suggests varying investor valuation relative to sales, with a notable increase in 2024 indicating stronger market confidence or improved sales performance.
- Price to Book Value (P/BV) Ratio
- The P/BV ratio demonstrated moderate variability. It declined from 4.33 in 2020 to 3.65 in 2021, then increased to 4.9 in 2022, followed by a decrease to 4.01 in 2023. In 2024, the ratio rose significantly to 7.36. This pattern indicates changing market valuation relative to book value, with substantial appreciation in market expectations or a decrease in book value reflected in 2024.
Price to Earnings (P/E)
Gilead Sciences Inc., historical P/E 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 | ||||||
| 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: 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.
2 2024 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 2024 Calculation
P/E ratio = Share price ÷ EPS
= ÷ =
5 Click competitor name to see calculations.
- Share Price
- The share price demonstrated notable volatility over the period. It started at $62.79 at the end of 2020, slightly decreased to $61.35 by the end of 2021, then increased significantly to $83.50 in 2022. Thereafter, it declined to $73.55 in 2023 before rising sharply to $114.31 in 2024. Overall, the trend indicates a strong upward movement by the final period.
- Earnings per Share (EPS)
- EPS showed considerable fluctuations across the years. It was very low at $0.10 in 2020, surged to $4.96 in 2021, and then dropped to $3.68 in 2022. It rose again to $4.55 in 2023 before experiencing a steep decline to $0.39 in 2024. This irregular pattern suggests variability in profitability or earnings performance.
- Price-to-Earnings Ratio (P/E)
- The P/E ratio started extremely high at 641.48 in 2020, likely driven by the very low EPS in that year. It then decreased sharply to 12.36 in 2021, increased to 22.68 in 2022, and declined again to 16.17 in 2023. In 2024, it surged sharply to 296.57, reflecting the steep drop in EPS despite the increase in share price. The P/E ratio's volatility highlights the impact of fluctuating earnings on valuation multiples.
- Overall Insights
- The financial data reveals substantial variability in both earnings and valuation over the analyzed years. Despite an overall rising trend in share price by 2024, earnings per share have not followed a consistent upward trajectory, and the P/E ratio exhibits high sensitivity to changes in EPS. The elevated P/E ratios in 2020 and 2024 suggest periods when the company's stock price may have been high relative to its earnings, potentially indicating investor expectations or market conditions affecting valuation independently of current profitability.
Price to Operating Profit (P/OP)
Gilead Sciences Inc., historical P/OP calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| 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: 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.
2 2024 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 2024 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= ÷ =
5 Click competitor name to see calculations.
- Share Price
- The share price showed a fluctuating but overall upward trend from 2020 to 2024. Initially, it decreased slightly from $62.79 in 2020 to $61.35 in 2021, then increased substantially to $83.50 in 2022. After a decline to $73.55 in 2023, the share price experienced a sharp rise to $114.31 in 2024, marking the highest value in the observed period.
- Operating Profit Per Share
- The operating profit per share exhibited volatility over the years. It rose significantly from $3.24 in 2020 to $7.91 in 2021, indicating improved profitability. However, this was followed by a decline to $5.88 in 2022. A slight recovery occurred in 2023 with a value of $6.10, but there was a pronounced drop to $1.33 in 2024, reflecting a considerable decrease in operating profitability per share in the latest period.
- Price-to-Operating Profit Ratio (P/OP)
- The P/OP ratio mirrored the fluctuations in both share price and operating profit per share. Starting at 19.38 in 2020, it dropped significantly to 7.76 in 2021, consistent with the increase in operating profit per share and relatively stable share price. The ratio then rose to 14.21 in 2022 and decreased slightly to 12.05 in 2023, reflecting changes in profitability and market valuation. In 2024, the ratio surged dramatically to 85.65, driven by the sharp decline in operating profit per share despite the surge in share price, indicating a potential market expectation of future earnings growth or other factors influencing valuation beyond current profitability.
Price to Sales (P/S)
Gilead Sciences Inc., historical P/S calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| 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: 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.
2 2024 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 2024 Calculation
P/S ratio = Share price ÷ Sales per share
= ÷ =
5 Click competitor name to see calculations.
- Share Price
- The share price exhibited a fluctuating yet generally upward trend over the five-year period. Beginning at $62.79 at the end of 2020, it experienced a slight decline to $61.35 by the end of 2021. In 2022, the price surged to $83.50, followed by a decrease to $73.55 in 2023. By the end of 2024, the share price rose significantly to $114.31, indicating strong market performance in the latest period.
- Sales per Share
- Sales per share showed steady growth throughout the observed periods. Starting from $19.38 in 2020, it increased consistently each year to reach $22.97 by the end of 2024. The increments were modest but stable, with values moving from $19.38, $21.54, $21.64, $21.62, and $22.97, suggesting a gradual improvement in revenue generation per share.
- Price-to-Sales Ratio (P/S)
- The Price-to-Sales ratio experienced considerable variation, reflecting changes in market valuation relative to sales. The ratio started at 3.24 in 2020 and decreased to 2.85 in 2021, indicating a lower market valuation relative to sales at that time. It then jumped to 3.86 in 2022 before slightly declining to 3.40 in 2023. A sharp increase followed in 2024, reaching 4.98. This increase suggests that investors are willing to pay a higher premium for each dollar of sales, possibly reflecting expectations of future growth or improved profitability.
Price to Book Value (P/BV)
Gilead Sciences Inc., historical P/BV calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| 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: 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.
2 2024 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 2024 Calculation
P/BV ratio = Share price ÷ BVPS
= ÷ =
5 Click competitor name to see calculations.
- Share Price
- The share price exhibited fluctuations over the analyzed period. After a slight decline from $62.79 in 2020 to $61.35 in 2021, the price increased significantly to $83.50 in 2022. However, it declined again to $73.55 in 2023 before rising sharply to $114.31 in 2024. Overall, the trend indicates substantial volatility with a strong upward move by the end of the period.
- Book Value Per Share (BVPS)
- The book value per share showed a generally positive trend from 2020 to 2023, rising from $14.49 to a peak of $18.33. In 2024, however, the BVPS declined to $15.52. The increase during the initial years suggests growth in the company's equity base, while the dip in the final year could indicate changes in equity structure or net asset value.
- Price-to-Book Value (P/BV) Ratio
- The P/BV ratio varied substantially over the period. It decreased from 4.33 in 2020 to 3.65 in 2021, then rose sharply to 4.90 in 2022 before dropping to 4.01 in 2023. The ratio escalated notably to 7.36 in 2024. This pattern reflects changes in market valuation relative to the company’s book value, with the high ratio in 2024 indicating increased investor confidence or possibly overvaluation relative to book equity at that time.