Is Gilead Sciences Inc (GILD) overvalued?
On Equity Rank's model estimate, GILD trades close to its fair value (6% above it). Gilead Sciences Inc (GILD) last closed at $166.89; the multi-method model fair value is $157.21.
| Price | Model fair value | Price vs model |
|---|---|---|
| $166.89 | $157.21 | 6% above |
What the answer rests on
- 2 of 5 valuation methods put GILD's value above its price and 3 put it below, so the methods disagree.
- To justify today's price, GILD's free cash flow would need to grow about 1.3% a year for ten years (a reverse discounted cash flow). Over the last three years it actually grew 4.3% a year.
- Over the past year the price sat below the model fair value on 18% of trading days. The gap ranged from 11% below to 32% above the model fair value.
Read this before relying on it
The model fair value is an estimate from published financial statements. It is not a forecast of where the price goes, and it can be wrong. Within 10% either side we call it close to fair value: valuation models are not precise enough to read more into a smaller gap. Our own lists have no proven edge over the market yet; the live record shows every result, misses included.
Every valuation method behind GILD's fair value · What prices assume · Other companies