Market Pulse50Neutral

Gilead Sciences, Inc.Opportunity Rank #174(GILD) Intrinsic Value & DCF Analysis (2026)

Sector: Healthcare

Current Price

$137.34

Last updated: Mar 24, 2026

Price vs Intrinsic Value

$137.34
Price
$142.80
Intrinsic Value
Undervalued by 4%MOS: $114.24

Fundamental Score

52/100
Neutral

Weighted across 6 signals

Narrative Score

68/100
Improving

No change vs previous

The intrinsic value of Gilead Sciences, Inc. (GILD) is estimated at $142.80 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $137.34, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a 4.12% long-term growth rate and an 8.50% discount rate (calculated: 7.29%), reflecting expected future free cash flow and cost of capital.

The intrinsic value of Gilead Sciences, Inc. (GILD) is estimated at $142.80 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $137.34, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a 4.12% long-term growth rate and an 8.50% discount rate (calculated: 7.29%), reflecting expected future free cash flow and cost of capital.

Valuation Details

$142.80
3.98% upside
20% margin of safety: $114.24
Years: 10Growth Rate: 4.12%
Want to create your own valuation? Create a free account.

Capital Efficiency

Average Quarterly ROIC
6.19%
Cost of Capital (estimated)10%
Value StatusUnderperforming Capital

The company is earning below its required return. This may indicate inefficient use of capital or excess cash that isn't being reinvested.

Complete historical ROIC is available with
.

Fundamental Details

52/100
NeutralWeighted across 6 signals
DCF Discount
4.0% discount to price
57
FCF Yield
6.2% trailing FCF yield
100
ROIC vs WACC
ROIC 6.2% vs WACC 10.0% (0.6x)
31
Net Debt / FCF
1.3x net debt to FCF
50
Buybacks
Share count shrinking
80
FCF CAGR (5Y)
3.7% 5Y FCF CAGR
25
Strengths: FCF Yield, Buybacks. Concerns: ROIC vs WACC, FCF CAGR (5Y).

Narrative Details

68/100
Improving
Vs 6-Month Baseline:Below Avg (29th pct)Weighted across 6 recent drivers
Trend: StableConfidence: 100%Updated: 2h ago
Sources: 136 (124 News · 12 Analyst)
Drivers(last 30 days)
80 news sentiment+1.9
40 regulatory scrutiny-0.2
Downgrade headlines+0.0
Legal risk+0.0
2 earnings beat+0.0
12 analyst reiterations0.0

Investment Coach

Updated 20h ago
WATCHConfidence: 48%
Thesis
Gilead Sciences, Inc. shows a healthy free cash flow yield of 6.2% and a valuation near fair value, suggesting patience may be warranted. However, returns are currently trailing the estimated cost of capital, indicating caution is needed.
Key Risk
The key risk is the company's return on invested capital (ROIC) remaining below its weighted average cost of capital (WACC), which could pressure valuation and returns.
Signals To Watch
  • Price moving to at least a mid-teens discount to fair value.
  • Sustained improvement in ROIC versus WACC spread.
  • Meaningful shifts in the narrative trend and score direction.
Ask the Coach - Available with
Historical Growth Rates
Free Cash Flow- - -Trend CAGR: 4.12%5 Year CAGR (Adjusted): -1.26%

Free Cash Flow (in millions)

TTM20252024202320222021202020192018201720162015201420132012201120102009200820072006
$10,581$10,582$11,351$8,591$9,800$11,963$8,818$9,969$9,324$12,488$17,795$21,997$13,375$3,295$3,592$3,771$2,896$3,310$2,258$1,844$1,323

How Intrinziq Estimates Fair Value

Intrinziq estimates Gilead Sciences, Inc.'s intrinsic value using a discounted cash flow (DCF) model based on free cash flow trends and a market-based discount rate. The model projects future cash flows over ten years and discounts them using a market return assumption to estimate fair value.

Gilead Sciences, Inc.Healthcare

Gilead Sciences, Inc., a biopharmaceutical company, discovers, develops, and commercializes medicines in the areas of unmet medical need in the United States, Europe, and internationally. The company provides Biktarvy, Genvoya, Descovy, Odefsey, Truvada, Complera/ Eviplera, Stribild, and Atripla products for the treatment of HIV/AIDS; Veklury, an injection for intravenous use, for the treatment of coronavirus disease 2019; and Epclusa, Harvoni, Vosevi, Vemlidy, and Viread for the treatment of liver diseases. It also offers Yescarta, Tecartus, Trodelvy, and Zydelig products for the treatment of hematology, oncology, and cell therapy patients. In addition, the company provides Letairis, an oral formulation for the treatment of pulmonary arterial hypertension; Ranexa, an oral formulation for the treatment of chronic angina; and AmBisome, a liposomal formulation for the treatment of serious invasive fungal infections. Gilead Sciences, Inc. has collaboration agreements with 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 incorporated in 1987 and is headquartered in Foster City, California.