Gilead Sciences, Inc. (GILD) DCF Valuation
Transparent DCF models put Gilead Sciences, Inc. (GILD)'s fair value in a range of $103.56 – $172.39 — the low end is TGM's conservative base case (5% FCF growth, 10% discount), the high end the analyst consensus (FMP). Today's price of $125.50 sits within that range — roughly fairly valued on these assumptions.
Reverse DCF: at today's $125.50, the market is pricing in roughly +7.3%/yr free-cash-flow growth over the next decade (at a 10% required return) — versus its actual 5-year FCF CAGR of +3.3%. The price is betting on acceleration above its track record.
Current Price
$125.50
Fair-Value Range
$103.56 – $172.39
Market-Implied Growth
+7.3%/yr
vs +3.3% 5Y actual
GILD DCF Fair Value Calculator
Edit the assumptions to see how they change the estimated fair value. Illustrative model — not investment advice. Defaults to a conservative base case; the analyst (FMP) DCF, where available, is shown as a reference below.
Base inputs: FCF $8.9B · 1.24B shares · net debt $17.0B
Estimated Fair Value
$103.56
-17.5% vs $125.50
Sensitivity — fair value by discount rate × terminal growth
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 5.0%/yr FCF growth and 10-year horizon fixed. Green = above today's $125.50; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 8.0% | $132 | $140 | $148 | $159 | $172 |
| 9.0% | $111 | $117 | $122 | $129 | $137 |
| 10.0% | $95.81 | $99.44 | $104 | $108 | $114 |
| 11.0% | $83.50 | $86.16 | $89.14 | $92.49 | $96.29 |
| 12.0% | $73.58 | $75.58 | $77.79 | $80.25 | $82.99 |
About Gilead Sciences, Inc.
Gilead Sciences, Inc. is a global biopharmaceutical enterprise, with operations spanning the United States, Europe, and numerous international markets. Its core mission involves discovering, developing, and commercializing innovative medications to address critical health needs. The company's extensive product portfolio encompasses treatments for a variety of severe conditions. For HIV/AIDS, it supplies key therapies such as Biktarvy, Genvoya, Descovy, Odefsey, Truvada, Complera/Eviplera, Stribild, and Atripla. In response to the 2019 coronavirus pandemic, Gilead provides Veklury, an injectable drug for intravenous administration. Its offerings for liver diseases include Epclusa, Harvoni, Vosevi, Vemlidy, and Viread. Furthermore, Gilead assists patients battling hematological disorders, various cancers, and those undergoing cell therapy, through products like Yescarta, Tecartus, Trodelvy, and Zydelig. Other specialized medicines include Letairis, an oral drug for pulmonary arterial hypertension; Ranexa, also an oral medication, for chronic angina; and AmBisome, a liposomal formulation designed to combat serious invasive fungal infections. Gilead Sciences, Inc. actively engages in collaboration agreements with a diverse range of partners to advance its therapeutic pipeline. These include Arcus Biosciences, Inc., Pionyr Immunotherapeutics Inc., Tizona Therapeutics, Inc., Tango Therapeutics, Inc., Jounce Therapeutics, Inc., Galapagos NV, Janssen Sciences Ireland Unlimited Company, Japan Tobacco, Inc., Gadeta B.V., Bristol-Myers Squibb Company, Dragonfly Therapeutics, Inc., and Merck & Co, Inc. The company was founded in 1987 and its corporate headquarters are situated in Foster City, California.
- Sector
- Healthcare
- Industry
- Drug Manufacturers - General
- CEO
- Daniel O'Day