Stock Analysis on Net
Stock Analysis on Net

Gilead Sciences Inc. (NASDAQ:GILD)

Price to FCFE (P/FCFE)

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Free Cash Flow to Equity (FCFE)

Gilead Sciences Inc., FCFE calculation

US$ in millions

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12 months ended: Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Net income attributable to Gilead 5,665 4,592 6,225 123 5,386
Net loss attributable to noncontrolling interest (52) (26) (24) (34) (22)
Net noncash charges 4,696 6,269 4,694 9,717 4,578
Changes in operating assets and liabilities (2,303) (1,763) 489 (1,638) (798)
Net cash provided by operating activities 8,006 9,072 11,384 8,168 9,144
Capital expenditures (585) (728) (579) (650) (825)
Proceeds from debt financing, net of issuance costs 1,980 — — 8,184 —
Repayments of debt and other obligations (2,250) (1,500) (4,750) (2,500) (2,750)
Free cash flow to equity (FCFE) 7,151 6,844 6,055 13,202 5,569

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Item Description The company
FCFE Free cash flow to equity is the cash flow available to Gilead Sciences Inc. equity holders after all operating expenses, interest, and principal payments have been paid and necessary investments in working and fixed capital have been made. Gilead Sciences Inc. FCFE increased from 2021 to 2022 and from 2022 to 2023.

Price to FCFE Ratio, Current

Gilead Sciences Inc., current P/FCFE calculation, comparison to benchmarks

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No. shares of common stock outstanding 1,244,992,081
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions) 7,151
FCFE per share 5.74
Current share price (P) 89.84
Valuation Ratio
P/FCFE 15.64
Benchmarks
P/FCFE, Competitors1
AbbVie Inc. 19.82
Amgen Inc. 5.16
Bristol-Myers Squibb Co. 8.58
Danaher Corp. 51.11
Eli Lilly & Co. 81.05
Johnson & Johnson 24.56
Merck & Co. Inc. 19.38
Moderna Inc. —
Pfizer Inc. 3.86
Regeneron Pharmaceuticals Inc. 23.50
Thermo Fisher Scientific Inc. 30.98
P/FCFE, Sector
Pharmaceuticals, Biotechnology & Life Sciences 17.55
P/FCFE, Industry
Health Care 17.34

Based on: 10-K (reporting date: 2023-12-31).

1 Click competitor name to see calculations.

If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.

Price to FCFE Ratio, Historical

Gilead Sciences Inc., historical P/FCFE calculation, comparison to benchmarks

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Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
No. shares of common stock outstanding1 1,245,774,616 1,247,105,154 1,253,886,724 1,256,593,156 1,263,636,656
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)2 7,151 6,844 6,055 13,202 5,569
FCFE per share3 5.74 5.49 4.83 10.51 4.41
Share price1, 4 73.55 83.50 61.35 62.79 70.10
Valuation Ratio
P/FCFE5 12.81 15.22 12.70 5.98 15.91
Benchmarks
P/FCFE, Competitors6
AbbVie Inc. 17.37 22.66 18.76 13.16 3.64
Amgen Inc. 4.71 8.32 13.52 11.06 33.32
Bristol-Myers Squibb Co. 7.52 22.85 16.17 7.80 5.80
Danaher Corp. 53.08 32.04 20.75 44.62 6.88
Eli Lilly & Co. 75.06 60.51 35.17 36.62 15.87
Johnson & Johnson 24.31 16.73 23.28 15.60 23.06
Merck & Co. Inc. 24.48 22.40 18.72 17.85 18.08
Moderna Inc. — 12.24 4.62 31.68 —
Pfizer Inc. 3.82 10.56 8.88 — 9.87
Regeneron Pharmaceuticals Inc. 26.52 19.29 10.35 13.30 21.00
Thermo Fisher Scientific Inc. 31.16 27.98 13.44 18.58 46.04
P/FCFE, Sector
Pharmaceuticals, Biotechnology & Life Sciences 17.23 19.02 15.27 17.30 11.46
P/FCFE, Industry
Health Care 16.99 18.08 16.76 17.08 13.39

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 Data adjusted for splits and stock dividends.

2 See details »

3 2023 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 7,151,000,000 ÷ 1,245,774,616 = 5.74

4 Closing price as at the filing date of Gilead Sciences Inc. Annual Report.

5 2023 Calculation
P/FCFE = Share price ÷ FCFE per share
= 73.55 ÷ 5.74 = 12.81

6 Click competitor name to see calculations.

Valuation ratio Description The company
P/FCFE Price to free cash flow to equity is cash valuation indicator of stockholders’ equity. Gilead Sciences Inc. P/FCFE ratio increased from 2021 to 2022 but then slightly decreased from 2022 to 2023 not reaching 2021 level.