Gilead Sciences Inc. (NASDAQ:GILD)

Price to Earnings (P/E) Ratio

The P/E ratio exhibits significant volatility across the observed quarters. Starting at a very high level of 277.25, it sharply declines to a range between 11 and 30 during 2021 and 2022, indicating significant fluctuations in earnings or market valuation. There is a notable spike in early 2024, reaching as high as 925.87 before falling back below 300 and normalizing around 18 to 22 in the most recent quarters. This pattern suggests episodic changes in earnings relative to market price, possibly due to volatile earnings or market reactions to specific events.

Price to Operating Profit (P/OP) Ratio

The P/OP ratio mirrors the volatility observed in the P/E ratio but with less extreme values. Starting at 18.31, it decreases during 2021 to below 8, then climbs again through 2022, peaking at 16.27 and subsequently fluctuating between 11 and 14 during late 2022 and 2023. A pronounced increase occurs in early 2024, reaching highs above 143 before decreasing back to the teens in later quarters. The pattern reflects swings in operating profitability relative to share price, suggesting periods of diminished operating profit or heightened price multiples.

Price to Sales (P/S) Ratio

The P/S ratio demonstrates more stability compared to P/E and P/OP, generally ranging between 2.8 and 5.2. There is a slight downward trend in early 2022 followed by a gradual increase peaking near 4.98 in late 2024. The most recent quarter shows a value near 5.16, indicating a relatively higher valuation compared to sales. The steady rise towards the later periods suggests growing investor confidence or price appreciation relative to revenue.

Price to Book Value (P/BV) Ratio

The P/BV ratio shows a generally upward trend with some fluctuations. Starting around 4.4, the ratio dips slightly during 2021, before rising steadily from 3.82 to over 7.36 in late 2024. It slightly declines in most recent periods but remains elevated above 6.4. This trend indicates an increasing premium placed on the company’s book value, which may reflect enhanced perceived asset value or market optimism.

Overall Trends and Observations

The data presents periods of considerable volatility in earnings-related valuation multiples (P/E and P/OP) contrasted with relatively more stable sales and book value multiples (P/S and P/BV). The sharp spikes in P/E and P/OP in early 2024 suggest extraordinary events affecting profitability or market expectations. The upward trends in P/S and P/BV ratios indicate a progressive increase in market valuation relative to the company’s revenue and book value over time. Such mixed patterns imply fluctuating profitability alongside generally increasing investor valuation of the company’s underlying assets and sales capacity.

Share Price Trends

The share price exhibited moderate fluctuations from March 2021 through December 2023, ranging between approximately $61 and $83. Growth was seen starting from March 2024, with a notable increase reaching a peak of $114.31 in December 2024. Although there was some volatility, the upward trend continued into 2025, with prices climbing from about $99 to nearly $119 by September 2025.

Earnings per Share (EPS) Trends

EPS showed considerable variability across the periods analyzed. Initially, values increased significantly from $0.24 in March 2021 to a high of nearly $5.89 in September 2021, then declined gradually through late 2022. A sharp drop to low EPS levels occurred in early 2024, followed by recovery and a substantial rise again in 2025, reaching $6.54 by September 2025, representing overall growth with periods of volatility.

Price-to-Earnings (P/E) Ratio Trends

The P/E ratio displayed substantial volatility. Early values were elevated, peaking at 277.25 in March 2021, then decreased sharply during mid-2021 to a range mostly between 11 and 30 until late 2023. A pronounced spike to extremely high levels occurred in early 2024, with values exceeding 900 at one point, signaling possible earnings anomalies or market expectations. The ratio normalized in mid-2025, settling in the 18 to 22 range.

Overall Insights

Over the analyzed period, the share price generally trended upward, particularly from early 2024 onward. EPS trends were marked by strong growth punctuated by intermittent declines, especially in early 2024. The P/E ratio showed sensitivity to these earnings fluctuations, with extreme values corresponding to periods of unusual EPS changes, suggesting that market valuations were reactive to earnings volatility. The data indicates phases of market optimism and uncertainty which impacted valuation metrics significantly.

Share Price Trend

The share price exhibited fluctuations over the observed quarters. Initially, it increased from $66.54 to a peak of $83.50 by the end of 2022. Following this, the price demonstrated volatility, declining to approximately $64.92 by the first quarter of 2024, then rising sharply to a peak of $114.31 at the end of 2024. In the first three quarters of 2025, the share price showed a moderate upward trend, moving toward $118.84 by the third quarter.

Operating Profit Per Share Trend

The operating profit per share showed significant variability. Starting at $3.64 in early 2021, it rose steadily to around $9.27 in the third quarter of 2021, then declined to lower levels by the end of 2022, reaching a low point near $0.66 in the third quarter of 2024. After this period, the operating profit per share increased moderately, ending at $8.46 in the third quarter of 2025, indicating signs of recovery.

Price to Operating Profit (P/OP) Ratio Trend

The P/OP ratio revealed considerable volatility, inversely related to trends in operating profit per share. Early values fluctuated around 7 to 18. There was a spike reaching as high as 143.05 in the third quarter of 2024, coinciding with a trough in operating profit per share, indicating the share price remained relatively high despite depressed earnings. The ratio normalized somewhat to values around 14 to 17 in 2025, suggesting a stabilization in pricing relative to operating profit.

Overall Insights

The data reflects a challenging period for operating profitability with substantial declines in mid-2024, accompanied by an increase in valuation multiples, possibly indicating market expectations of future recovery rather than current earnings. The share price volatility suggests sensitivity to changes in operating profit and market sentiment. Recent quarters show a recovery phase in profitability and a corresponding relative stabilization in valuation multiples.

Share Price Trend

Over the period analyzed, the share price exhibited notable fluctuations. Initially, the price showed moderate variation around the mid-60 to low-70 US$ range during 2021 and early 2022, reaching a low near 61 US$. Subsequently, there was a marked increase starting from late 2022, peaking above 114 US$ by the end of 2024. The share price experienced minor pullbacks but maintained an overall upward trajectory through to the third quarter of 2025, ending near 119 US$.

Sales Per Share Pattern

Sales per share remained relatively stable throughout the observed timeframe. The figure oscillated narrowly between approximately 20.1 US$ and 23.1 US$. There was a gradual, incremental increase over four years, reflecting steady but slow revenue growth per share, with no significant dips or surges.

Price-to-Sales (P/S) Ratio Dynamics

The P/S ratio initially trended downward from the early 3.3 range in 2021 to a low of 2.84 in mid-2022, indicating a decrease in market valuation relative to sales. However, from late 2022 onward, the ratio climbed sharply, reaching nearly 5.2 by late 2025. This increase suggests that the market started valuing the company at increasingly higher multiples of sales, possibly reflecting heightened investor confidence, improved growth expectations, or other favorable market sentiments.

Combined Interpretation

The combination of steady sales per share alongside a rising share price and expanding P/S ratio in the later periods points to strong market optimism and confidence in future performance beyond current sales figures. The earlier phase of relatively stable prices and a declining P/S ratio reflects a more cautious or corrective market stance during that time. Overall, the data reveals a progression from a stable, modest valuation environment towards a period characterized by robust market revaluation and growth anticipation.

The financial data over the observed quarters reveals several key trends in the company’s market valuation and book value metrics.

Share Price (US$)

The share price exhibits a generally upward trajectory throughout the period, starting at $66.54 in March 2021 and reaching a peak of $118.84 by September 2025. Notable fluctuations occur, such as a dip from $83.50 in December 2022 to $64.92 in March 2024, followed by a strong recovery and consistent growth thereafter. This reflects volatility within the market but an overall positive trend in investor valuation.

Book Value Per Share (BVPS) (US$)

BVPS shows minor fluctuations but maintains relative stability, ranging approximately between $14.08 and $18.33 over the period. It starts at $15.11 in March 2021, peaks intermittently above $18.00 towards the end of 2023, dips slightly below $14.50 in early 2024, and rises steadily again through 2025. This pattern suggests consistent underlying asset value with moderate variability.

Price-to-Book Value Ratio (P/BV, ratio)

The P/BV ratio displays notable volatility, beginning at 4.40 in March 2021, decreasing to around 3.65 by December 2021, then sharply increasing to a peak of 7.36 in December 2024. The ratio fluctuates but remains elevated in the latter quarters, ending near 6.85 in September 2025. This indicates that the market price increasingly exceeds book value, reflecting growing investor optimism or expectations of future growth beyond the current book value.

In summary, the company’s share price demonstrates an upward trend with intermittent volatility, while its book value per share remains comparatively stable. The rising P/BV ratio over time suggests an increasing premium placed by the market on the company’s equity relative to its book value. This may imply positive market sentiment or anticipated growth prospects despite some interim declines in share price and book value.