Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Gilead Sciences Inc. (NASDAQ:GILD)

Common Stock Valuation Ratios (Price Multiples)

Beginner level


Current Valuation Ratios

Gilead Sciences Inc., current price multiples

Microsoft Excel LibreOffice Calc
Gilead Sciences Inc. Abbott Laboratories AbbVie Inc. Amgen Inc. Biogen Inc. Bristol-Myers Squibb Co. Eli Lilly & Co. Illumina Inc. Johnson & Johnson Merck & Co. Inc. Pfizer Inc. Regeneron Pharmaceuticals Inc. Vertex Pharmaceuticals Inc. Zoetis Inc. Pharmaceuticals & Biotechnology Health Care
Selected Financial Data
Current share price (P) $64.21
No. shares of common stock outstanding 1,253,724,370
Growth rate (g) 26.57%
 
Earnings per share (EPS) $4.30
Next year expected EPS $5.44
Operating profit per share $3.42
Sales per share $17.64
Book value per share (BVPS) $17.97
Valuation Ratios (Price Multiples)
Price to earnings (P/E) 14.95 50.88 19.95 18.16 7.21 37.86 17.38 39.36 25.27 21.36 12.30 27.94 58.43 50.99 21.47 23.69
Price to next year expected earnings 11.81 52.97 15.93 15.95 5.42 39.48 15.09 31.86 30.45 22.11 11.68 22.96 53.20 36.42 19.29 21.67
Price-earnings-growth (PEG) 0.56 0.79 1.31 0.22 1.15 1.67 2.33 1.29 5.94 1.27 1.90 2.53
Price to operating profit (P/OP) 18.78 41.39 12.11 14.72 6.03 22.02 29.07 40.04 19.28 18.12 15.19 26.75 57.42 38.88 19.14 20.73
Price to sales (P/S) 3.64 5.88 4.73 6.41 2.95 4.98 6.48 11.13 4.66 4.49 3.87 7.52 16.52 12.22 5.13 3.98
Price to book value (P/BV) 3.57 6.03 14.72 3.18 2.52 55.47 8.55 6.42 8.12 3.17 5.33 11.30 28.24 6.50 5.65

Based on: 10-K (filing date: 2020-02-25).

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

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Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Price to earnings (P/E) 16.45 15.26 22.75 6.83 6.75
Price to operating profit (P/OP) 20.66 10.15 7.45 5.23 5.50
Price to sales (P/S) 4.00 3.84 4.10 3.08 3.80
Price to book value (P/BV) 3.93 3.89 5.15 4.88 6.59

Based on: 10-K (filing date: 2020-02-25), 10-K (filing date: 2019-02-26), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-27), 10-K (filing date: 2016-02-24).

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. Gilead Sciences Inc.’s P/E ratio decreased from 2017 to 2018 but then slightly increased from 2018 to 2019.
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. Gilead Sciences Inc.’s P/OP ratio increased from 2017 to 2018 and from 2018 to 2019.
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. Gilead Sciences Inc.’s P/S ratio decreased from 2017 to 2018 but then increased from 2018 to 2019 not reaching 2017 level.
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company’s required rate of return and its actual rate of return. Gilead Sciences Inc.’s P/BV ratio decreased from 2017 to 2018 but then slightly increased from 2018 to 2019.

Price to Earnings (P/E)

Gilead Sciences Inc., historical P/E calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
No. shares of common stock outstanding1 1,263,636,656 1,275,510,558 1,309,967,781 1,307,066,900 1,366,845,691
Selected Financial Data (US$)
Net income attributable to Gilead (in millions) 5,386  5,455  4,628  13,501  18,108 
Earnings per share (EPS)2 4.26 4.28 3.53 10.33 13.25
Share price1, 3 70.10 65.28 80.36 70.50 89.36
Valuation Ratio
P/E ratio4 16.45 15.26 22.75 6.83 6.75
Benchmarks
P/E Ratio, Competitors5
Abbott Laboratories 41.83 56.47 220.29 55.16 12.83
AbbVie Inc. 17.82 20.60 35.47 16.54 17.01
Amgen Inc. 17.07 14.01 64.06 16.03 15.95
Biogen Inc. 9.97 14.79 28.83 15.41 16.67
Bristol-Myers Squibb Co. 41.99 16.81 103.55 20.56 64.22
Eli Lilly & Co. 16.19 39.13 32.39 33.35
Illumina Inc. 43.43 52.00 44.63 52.01 50.07
Johnson & Johnson 25.99 23.74 268.10 20.08 18.80
Merck & Co. Inc. 20.60 33.46 61.63 46.14 31.64
Pfizer Inc. 11.63 21.58 9.99 28.10 26.37
Regeneron Pharmaceuticals Inc. 19.86 18.17 28.99 42.64 60.50
Vertex Pharmaceuticals Inc. 52.90 22.59 155.08
Zoetis Inc. 45.89 28.68 44.09 31.63 62.14
P/E Ratio, Sector
Pharmaceuticals & Biotechnology 20.75 23.18 37.52 21.01 19.11
P/E Ratio, Industry
Health Care 22.49 24.85 35.27 22.56 20.56

Based on: 10-K (filing date: 2020-02-25), 10-K (filing date: 2019-02-26), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-27), 10-K (filing date: 2016-02-24).

1 Data adjusted for splits and stock dividends.

2 2019 Calculation
EPS = Net income attributable to Gilead ÷ No. shares of common stock outstanding
= 5,386,000,000 ÷ 1,263,636,656 = 4.26

3 Closing price as at the filing date of Gilead Sciences Inc.’s Annual Report.

4 2019 Calculation
P/E ratio = Share price ÷ EPS
= 70.10 ÷ 4.26 = 16.45

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. Gilead Sciences Inc.’s P/E ratio decreased from 2017 to 2018 but then slightly increased from 2018 to 2019.

Price to Operating Profit (P/OP)

Gilead Sciences Inc., historical P/OP calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
No. shares of common stock outstanding1 1,263,636,656 1,275,510,558 1,309,967,781 1,307,066,900 1,366,845,691
Selected Financial Data (US$)
Income from operations (in millions) 4,287  8,200  14,124  17,633  22,193 
Operating profit per share2 3.39 6.43 10.78 13.49 16.24
Share price1, 3 70.10 65.28 80.36 70.50 89.36
Valuation Ratio
P/OP ratio4 20.66 10.15 7.45 5.23 5.50
Benchmarks
P/OP Ratio, Competitors5
Abbott Laboratories 34.03 36.64 60.88 24.25 19.80
AbbVie Inc. 10.82 18.35 19.63 10.49 11.61
Amgen Inc. 13.84 11.46 12.71 12.64 13.07
Biogen Inc. 8.34 11.13 13.70 11.08 12.09
Bristol-Myers Squibb Co. 24.42 16.16 28.87 19.79 53.18
Eli Lilly & Co. 27.08 33.99 39.61 25.63 29.86
Illumina Inc. 44.17 48.64 53.47 40.99 37.71
Johnson & Johnson 19.83 18.34 18.94 16.09 16.50
Merck & Co. Inc. 17.47 25.08 22.58 33.62 20.29
Pfizer Inc. 14.36 17.19 15.62 16.88 15.52
Regeneron Pharmaceuticals Inc. 19.01 17.53 16.71 28.70 30.74
Vertex Pharmaceuticals Inc. 51.98 74.57 331.55 2,143.58
Zoetis Inc. 35.00 22.59 22.33 18.65 28.09
P/OP Ratio, Sector
Pharmaceuticals & Biotechnology 18.50 18.80 18.34 15.37 14.99
P/OP Ratio, Industry
Health Care 19.67 19.47 19.02 16.15 15.68

Based on: 10-K (filing date: 2020-02-25), 10-K (filing date: 2019-02-26), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-27), 10-K (filing date: 2016-02-24).

1 Data adjusted for splits and stock dividends.

2 2019 Calculation
Operating profit per share = Income from operations ÷ No. shares of common stock outstanding
= 4,287,000,000 ÷ 1,263,636,656 = 3.39

3 Closing price as at the filing date of Gilead Sciences Inc.’s Annual Report.

4 2019 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 70.10 ÷ 3.39 = 20.66

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. Gilead Sciences Inc.’s P/OP ratio increased from 2017 to 2018 and from 2018 to 2019.

Price to Sales (P/S)

Gilead Sciences Inc., historical P/S calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
No. shares of common stock outstanding1 1,263,636,656 1,275,510,558 1,309,967,781 1,307,066,900 1,366,845,691
Selected Financial Data (US$)
Product sales (in millions) 22,119  21,677  25,662  29,953  32,151 
Sales per share2 17.50 16.99 19.59 22.92 23.52
Share price1, 3 70.10 65.28 80.36 70.50 89.36
Valuation Ratio
P/S ratio4 4.00 3.84 4.10 3.08 3.80
Benchmarks
P/S Ratio, Competitors5
Abbott Laboratories 4.83 4.37 3.84 3.70 2.78
AbbVie Inc. 4.22 3.58 6.67 3.84 3.83
Amgen Inc. 6.03 5.22 5.82 5.65 5.28
Biogen Inc. 4.08 4.87 5.96 4.98 5.49
Bristol-Myers Squibb Co. 5.52 3.67 5.02 4.72 6.07
Eli Lilly & Co. 6.03 5.15 3.71 4.18 4.02
Illumina Inc. 12.28 12.89 11.77 10.03 10.41
Johnson & Johnson 4.79 4.45 4.56 4.62 4.13
Merck & Co. Inc. 4.33 4.92 3.68 4.54 3.56
Pfizer Inc. 3.66 4.49 4.05 3.84 3.76
Regeneron Pharmaceuticals Inc. 5.34 6.62 5.92 7.86 9.38
Vertex Pharmaceuticals Inc. 14.95 15.54 16.42 12.51 20.38
Zoetis Inc. 11.00 7.03 7.18 5.31 4.42
P/S Ratio, Sector
Pharmaceuticals & Biotechnology 4.95 4.70 4.77 4.42 4.25
P/S Ratio, Industry
Health Care 3.78 3.56 3.57 3.25 3.17

Based on: 10-K (filing date: 2020-02-25), 10-K (filing date: 2019-02-26), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-27), 10-K (filing date: 2016-02-24).

1 Data adjusted for splits and stock dividends.

2 2019 Calculation
Sales per share = Product sales ÷ No. shares of common stock outstanding
= 22,119,000,000 ÷ 1,263,636,656 = 17.50

3 Closing price as at the filing date of Gilead Sciences Inc.’s Annual Report.

4 2019 Calculation
P/S ratio = Share price ÷ Sales per share
= 70.10 ÷ 17.50 = 4.00

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. Gilead Sciences Inc.’s P/S ratio decreased from 2017 to 2018 but then increased from 2018 to 2019 not reaching 2017 level.

Price to Book Value (P/BV)

Gilead Sciences Inc., historical P/BV calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
No. shares of common stock outstanding1 1,263,636,656 1,275,510,558 1,309,967,781 1,307,066,900 1,366,845,691
Selected Financial Data (US$)
Total Gilead stockholders’ equity (in millions) 22,525  21,387  20,442  18,887  18,534 
Book value per share (BVPS)2 17.83 16.77 15.60 14.45 13.56
Share price1, 3 70.10 65.28 80.36 70.50 89.36
Valuation Ratio
P/BV ratio4 3.93 3.89 5.15 4.88 6.59
Benchmarks
P/BV Ratio, Competitors5
Abbott Laboratories 4.96 4.38 3.40 3.76 2.68
AbbVie Inc. 36.95 21.24 22.17
Amgen Inc. 13.84 9.41 5.02 4.14 3.94
Biogen Inc. 4.40 5.03 5.80 4.70 6.31
Bristol-Myers Squibb Co. 2.80 5.89 8.88 5.66 7.04
Eli Lilly & Co. 51.67 12.87 7.33 6.33 5.51
Illumina Inc. 9.43 11.43 11.79 10.95 12.50
Johnson & Johnson 6.61 6.08 5.79 4.72 4.07
Merck & Co. Inc. 7.83 7.79 4.30 4.51 3.15
Pfizer Inc. 3.00 3.80 2.98 3.40 2.84
Regeneron Pharmaceuticals Inc. 3.79 5.07 5.66 8.58 10.53
Vertex Pharmaceuticals Inc. 10.23 10.68 20.14 18.42 22.38
Zoetis Inc. 25.42 18.74 21.52 17.46 19.72
P/BV Ratio, Sector
Pharmaceuticals & Biotechnology 6.28 6.55 5.55 4.92 4.48
P/BV Ratio, Industry
Health Care 5.36 5.37 4.84 4.32 3.88

Based on: 10-K (filing date: 2020-02-25), 10-K (filing date: 2019-02-26), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-27), 10-K (filing date: 2016-02-24).

1 Data adjusted for splits and stock dividends.

2 2019 Calculation
BVPS = Total Gilead stockholders’ equity ÷ No. shares of common stock outstanding
= 22,525,000,000 ÷ 1,263,636,656 = 17.83

3 Closing price as at the filing date of Gilead Sciences Inc.’s Annual Report.

4 2019 Calculation
P/BV ratio = Share price ÷ BVPS
= 70.10 ÷ 17.83 = 3.93

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company’s required rate of return and its actual rate of return. Gilead Sciences Inc.’s P/BV ratio decreased from 2017 to 2018 but then slightly increased from 2018 to 2019.