Latest Ratios: P/E Ratio 19.1x · EV/EBITDA 12.3x · ROE 40.7%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $160.9B | $154.0B | $115.9B | $101.9B | $108.3B | $91.6B | $73.6B | $83.0B | $81.8B | $94.5B | $97.2B |
| Enterprise Value | $177.9B | $171.1B | $132.6B | $120.8B | $128.2B | $113.0B | $99.0B | $95.9B | $91.2B | $120.4B | $115.4B |
| P/E Ratio → | 19.12 | 18.10 | 243.08 | 18.00 | 23.59 | 14.73 | 598.15 | 15.40 | 15.00 | 20.41 | 7.20 |
| P/S Ratio | 5.47 | 5.23 | 4.03 | 3.76 | 3.97 | 3.36 | 2.98 | 3.70 | 3.70 | 3.62 | 3.20 |
| P/B Ratio | 7.19 | 6.81 | 6.02 | 4.48 | 5.11 | 4.35 | 4.04 | 3.66 | 3.80 | 4.61 | 5.02 |
| P/FCF | 17.02 | 16.29 | 11.25 | 13.73 | 12.98 | 8.48 | 9.79 | 9.97 | 10.94 | 8.36 | 5.97 |
| P/OCF | 16.06 | 15.37 | 10.71 | 12.73 | 11.94 | 8.05 | 9.01 | 9.07 | 9.74 | 7.94 | 5.70 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 5.81 | 4.61 | 4.46 | 4.70 | 4.14 | 4.01 | 4.27 | 4.12 | 4.61 | 3.80 |
| EV / EBITDA | 12.31 | 11.83 | 29.95 | 11.73 | 13.59 | 9.44 | 17.83 | 16.86 | 9.47 | 7.82 | 6.14 |
| EV / EBIT | 15.21 | 15.81 | 79.57 | 15.48 | 18.99 | 12.18 | 37.31 | 15.59 | 10.27 | 8.22 | 6.39 |
| EV / FCF | — | 18.09 | 12.87 | 16.28 | 15.36 | 10.46 | 13.17 | 11.53 | 12.20 | 10.65 | 7.08 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 78.8% | 78.8% | 78.3% | 76.0% | 79.3% | 75.8% | 81.5% | 79.2% | 78.1% | 83.3% | 86.0% |
| Operating Margin | 39.7% | 39.7% | 5.8% | 28.0% | 26.9% | 36.3% | 16.5% | 19.1% | 37.1% | 54.1% | 58.0% |
| Net Profit Margin | 28.9% | 28.9% | 1.7% | 20.9% | 16.8% | 22.8% | 0.5% | 24.0% | 24.7% | 17.7% | 44.4% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 40.7% | 40.7% | 2.3% | 25.8% | 21.7% | 31.7% | 0.6% | 24.4% | 26.0% | 23.2% | 70.2% |
| ROA | 14.4% | 14.4% | 0.8% | 9.0% | 7.0% | 9.1% | 0.2% | 8.6% | 8.1% | 7.3% | 24.8% |
| ROIC | 23.2% | 23.2% | 3.2% | 13.8% | 13.2% | 17.3% | 7.7% | 9.7% | 15.9% | 25.2% | 40.2% |
| ROCE | 24.8% | 24.8% | 3.4% | 14.8% | 13.5% | 17.5% | 7.5% | 8.2% | 14.7% | 26.5% | 39.4% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 1.09 | 1.09 | 1.39 | 1.10 | 1.19 | 1.27 | 1.72 | 1.09 | 1.27 | 1.64 | 1.36 |
| Debt / EBITDA | 1.70 | 1.70 | 6.03 | 2.43 | 2.67 | 2.23 | 5.66 | 4.32 | 2.84 | 2.18 | 1.40 |
| Net Debt / Equity | — | 0.75 | 0.87 | 0.83 | 0.93 | 1.01 | 1.39 | 0.57 | 0.44 | 1.27 | 0.94 |
| Net Debt / EBITDA | 1.18 | 1.18 | 3.78 | 1.84 | 2.10 | 1.78 | 4.58 | 2.28 | 0.97 | 1.68 | 0.96 |
| Debt / FCF | — | 1.80 | 1.62 | 2.55 | 2.38 | 1.98 | 3.38 | 1.56 | 1.25 | 2.30 | 1.11 |
| Interest Coverage | 10.57 | 10.57 | 1.71 | 8.27 | 7.22 | 9.27 | 2.70 | 6.19 | 8.24 | 13.10 | 18.74 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.68 | 1.68 | 1.60 | 1.43 | 1.29 | 1.27 | 1.40 | 3.10 | 3.38 | 2.74 | 2.12 |
| Quick Ratio | 1.31 | 1.31 | 1.45 | 1.27 | 1.15 | 1.13 | 1.26 | 3.01 | 3.30 | 2.67 | 1.95 |
| Cash Ratio | 0.90 | 0.90 | 0.96 | 0.64 | 0.57 | 0.56 | 0.65 | 2.50 | 2.84 | 2.19 | 1.29 |
| Asset Turnover | — | 0.50 | 0.49 | 0.44 | 0.43 | 0.40 | 0.36 | 0.36 | 0.35 | 0.37 | 0.53 |
| Inventory Turnover | 1.43 | 1.43 | 3.66 | 3.64 | 3.75 | 4.08 | 2.72 | 5.07 | 5.96 | 5.46 | 2.68 |
| Days Sales Outstanding | — | 60.91 | 56.11 | 62.73 | 63.91 | 60.06 | 72.32 | 58.24 | 54.88 | 53.84 | 54.22 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 2.5% | 2.6% | 3.4% | 3.7% | 3.4% | 3.9% | 4.7% | 3.9% | 3.6% | 2.9% | 2.5% |
| Payout Ratio | 47.0% | 47.0% | 816.3% | 67.2% | 80.8% | 57.9% | 2804.1% | 59.8% | 54.5% | 59.0% | 18.2% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 5.2% | 5.5% | 0.4% | 5.6% | 4.2% | 6.8% | 0.2% | 6.5% | 6.7% | 4.9% | 13.9% |
| FCF Yield | 5.9% | 6.1% | 8.9% | 7.3% | 7.7% | 11.8% | 10.2% | 10.0% | 9.1% | 12.0% | 16.8% |
| Buyback Yield | 1.2% | 1.2% | 1.0% | 1.0% | 1.3% | 0.6% | 2.2% | 2.1% | 3.5% | 1.0% | 11.3% |
| Total Shareholder Yield | 3.7% | 3.8% | 4.4% | 4.7% | 4.7% | 4.5% | 6.8% | 6.0% | 7.2% | 3.9% | 13.8% |
| Shares Outstanding | — | $1.3B | $1.3B | $1.3B | $1.3B | $1.3B | $1.3B | $1.3B | $1.3B | $1.3B | $1.4B |
Medicare Price Negotiation Exposure
According to current market data, Gilead trades at a P/E of 18.86 and a PEG ratio of 0.14, suggesting that investors are heavily discounting future growth prospects relative to the company's historical earnings performance and the broader specialty pharmaceutical peer group's valuation multiples.
The low PEG ratio implies that the market is pricing in significant long-term stagnation, likely reflecting concerns over the durability of the HIV franchise. While the P/E appears moderate, it warrants further investigation as it may be artificially suppressed by the market's skepticism regarding the company's ability to successfully transition its oncology pipeline into a primary growth engine.
As reported in financial statements, Gilead's ROIC has fluctuated between a low of 1.8% and a peak of 6.4% over the last ten quarters, indicating that the company's ability to compound returns on invested capital is frequently hampered by the integration of large-scale, high-premium oncology acquisitions.
The volatility in ROIC suggests that while the core virology business remains highly efficient, the capital deployed into new therapeutic areas has yet to achieve a consistent, value-accretive return. Investors should monitor whether future R&D productivity can improve these returns, as current levels appear to lag behind more diversified peers in the sector.
Based on recent SEC filings, Gilead's cash conversion cycle has remained elevated, peaking at 218 days in 2026Q1, which reflects a significant reliance on inventory management and suggests that the company's operational efficiency is currently pressured by the complexities of its evolving product portfolio.
The high days-in-inventory figure, which reached 196 days in the most recent quarter, appears to be a structural byproduct of the specialized manufacturing requirements for cell therapies. This extended cycle warrants further investigation, as it may indicate potential bottlenecks in the supply chain that could impact future cash flow conversion if not optimized.
As indicated by the company's reported figures, the current ratio has improved to 1.97 in 2026Q1 from a low of 1.08 in 2024Q1, demonstrating a proactive effort to bolster short-term liquidity in anticipation of potential regulatory pricing shocks and ongoing R&D capital requirements.
This improvement in the current ratio suggests a more conservative approach to balance sheet management, providing a necessary cushion against the episodic nature of Veklury revenue and potential Medicare-related margin compression. The company appears well-positioned to meet its short-term obligations, even under scenarios of moderate operational stress.
Based on an analysis of Gilead's financial structure, the P/E ratio is frequently misapplied by investors, as it fails to account for the significant, non-cash IPR&D charges that periodically distort net income and obscure the underlying cash-generating power of the core HIV and oncology franchises.
Analysts should instead prioritize free cash flow or adjusted operating earnings to better gauge the company's true earning power. Relying solely on GAAP-based valuation multiples may lead to an inaccurate assessment of the company's fundamental health, as these charges do not reflect the ongoing operational viability of the business.
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying GILD stock.
Gilead Sciences, Inc.'s current P/E ratio is 19.1x. The historical average is 28.4x. This places it at the 52th percentile of its historical range.
Gilead Sciences, Inc.'s current EV/EBITDA is 12.3x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 17.1x.
Gilead Sciences, Inc.'s return on equity (ROE) is 40.7%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 23.7%.
Based on historical data, Gilead Sciences, Inc. is trading at a P/E of 19.1x. This is at the 52th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Gilead Sciences, Inc.'s current dividend yield is 2.46% with a payout ratio of 47.0%.
Gilead Sciences, Inc. has 78.8% gross margin and 39.7% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Gilead Sciences, Inc.'s Debt/EBITDA ratio is 1.7x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.