Market Pulse44Neutral

Gilead Sciences, Inc.Opportunity Rank #150(GILD) Intrinsic Value & DCF Analysis (2026)

Sector: Healthcare

Current Price

$134.28

Last updated: Jul 20, 2026

Price vs Intrinsic Value

$134.28
Price
$156.20
Intrinsic Value
Undervalued by 16%MOS: $124.96

Fundamental Score

57/100
Neutral

Weighted across 6 signals

Narrative Score

62/100
Improving

No change vs previous

Trend Score

51/100
Neutral

As of 2026-07-17

The intrinsic value of Gilead Sciences, Inc. (GILD) is estimated at $156.20 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $134.28, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a 4.17% long-term growth rate and an 8.50% discount rate (calculated: 7.36%), reflecting expected future free cash flow and cost of capital.

The intrinsic value of Gilead Sciences, Inc. (GILD) is estimated at $156.20 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $134.28, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a 4.17% long-term growth rate and an 8.50% discount rate (calculated: 7.36%), reflecting expected future free cash flow and cost of capital.

Valuation Details

$156.20
16.32% upside
20% margin of safety: $124.96
Years: 10Growth Rate: 4.17%
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Capital Efficiency

Average Quarterly ROIC
6.41%
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

57/100
NeutralWeighted across 6 signals
DCF Discount
16.3% discount to price
77
FCF Yield
6.8% trailing FCF yield
100
ROIC vs WACC
ROIC 6.4% vs WACC 10.0% (0.6x)
32
Net Debt / FCF
1.1x net debt to FCF
57
Buybacks
Share count growing
30
FCF CAGR (5Y)
5.2% 5Y FCF CAGR
51
Strengths: DCF Discount, FCF Yield. Concerns: ROIC vs WACC, Buybacks.

Narrative Details

62/100
Improving
Vs 6-Month Baseline:Low (8th pct)Weighted across 6 recent drivers
Trend: StableConfidence: 89%Updated: 2d ago
Sources: 73 (64 News · 9 Analyst)
Drivers(last 30 days)
48 news sentiment+0.8
12 regulatory scrutiny+0.2
2 upgrade headlines+0.1
2 analyst upgrades+0.1
2 legal risk+0.0
7 analyst reiterations0.0

Trend Details

51/100
NeutralAs of 2026-07-17310 daily bars used
3M Relative Strength vs SPY-9.0%
Distance from 52-Week High-13.8%
Price vs 21 EMA+2.6%
Price vs 21 EMA66 · +2.6%
Price vs 50 EMA63 · +2.6%
21 EMA vs 50 EMA50 · -0.0%
3M RS vs SPY18 · -9.0%
6M RS vs SPY52 · +0.6%
Distance from 52W High72 · -13.8%

Investment Coach

Updating... 38d ago
BUYConfidence: 61%
Thesis
Gilead Sciences, Inc. is undervalued with an estimated fair value 33.2% above its current price, supported by constructive fundamentals and an improving narrative score. Despite trailing returns relative to its cost of capital, the company's free cash flow yield and discounted cash flow metrics indicate potential for upside.
Key Risk
The key risk is the negative spread between ROIC and WACC, which may pressure returns and valuation if it does not improve.
Signals To Watch
  • Monitor whether valuation discount remains above 10%.
  • Track ROIC vs WACC spread for sustained improvement.
  • Follow narrative trend for meaningful shifts in the score direction.
Ask the Coach - Available with
Historical Growth Rates
Free Cash Flow- - -Trend CAGR: 4.17%5 Year CAGR (Adjusted): -0.50%

Free Cash Flow (in millions)

TTM20252024202320222021202020192018201720162015201420132012201120102009200820072006
$11,381$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. 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.