Gilead SciencesFRA:GIS -0.79%75 Interest Coverage is 11.22 as of Mar. 2026, which is 3% above its 10-year median of 10.85. GuruFocus rates FRA:GIS with a GF Score™ of 75/100 and a GF Value™ of €81.25 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 684 Drug Manufacturers companies, Gilead Sciences ranks worse than 51.46% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Gilead Sciences's
Operating Income
for the
three
months ended in Mar. 2026 was €2,329 Mil. Gilead Sciences's Interest Expense for the
three
months ended in Mar. 2026 was €-208 Mil.
Gilead Sciences's interest coverage for the quarter that ended in Mar. 2026 was 11.22.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Gilead Sciences's Interest Coverage or its related term are showing as below:
FRA:GIS'
s Interest Coverage Range Over the Past 10 Years
Min: 8.63 Med: 10.85 Max: 18.29
Current: 11.84
FRA:GIS's Interest Coverage is ranked worse than 51.46% of 684
companies
in the Drug Manufacturers industry
Industry Median: 12.765
vs FRA:GIS: 11.84
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Gilead Sciences Interest Coverage Related Terms
Gilead Sciences Interest Coverage Historical Data
* Premium members only.
The historical data trend for Gilead Sciences's Interest Coverage can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
FRA:GIS vs PFE, AMGN, BMY: Interest Coverage Comparison
For the Drug Manufacturers - General subindustry, Gilead Sciences's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Gilead Sciences Interest Coverage vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Gilead Sciences's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Gilead Sciences's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Gilead Sciences (FRA:GIS) has a Interest Coverage of 11.22 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Gilead Sciences and its competitors. This is near median its historical median of 10.85. Over the past decade, Gilead Sciences' Interest Coverage has ranged from 8.63 to 18.29. According to the industry distribution chart, Gilead Sciences ranks #352 out of 684 companies in the Drug Manufacturers industry, placing it in the top 51.5%.
Is Gilead Sciences' Interest Coverage too high?
Gilead Sciences' current Interest Coverage of 11.22 is near median its 10-year median of 10.85. Over the past 10 years, this metric has ranged from a low of 8.63 to a high of 18.29. The Drug Manufacturers industry median Interest Coverage is 12.77. Gilead Sciences' value of 11.22 is 12.1% below this industry median. Based on the distribution chart, Gilead Sciences ranks #352 out of 684 companies in the Drug Manufacturers industry, which is below the industry midpoint. Overall, Gilead Sciences has a GF Score™ of 75/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Gilead Sciences' Interest Coverage compare to PFE and AMGN?
According to the Drug Manufacturers industry distribution chart, Gilead Sciences ranks #352 out of 684 companies for Interest Coverage. This places Gilead Sciences in the lower half of its industry. The industry median Interest Coverage is 12.77. Gilead Sciences' value of 11.22 is 12.1% below this benchmark. Historically, Gilead Sciences' own Interest Coverage has ranged from 8.63 to 18.29 over the past decade. While the company's 10-year median is 10.85 vs. the industry median of 12.77, Gilead Sciences has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Drug Manufacturers company?
The median Interest Coverage among Drug Manufacturers companies is 12.77, based on 684 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Gilead Sciences's current Interest Coverage of 11.22 is 12.1% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Gilead Sciences and its competitors. For the Drug Manufacturers industry, the median Interest Coverage is 12.77 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Gilead Sciences's current Interest Coverage is 11.22, which is near median its own 10-year median of 10.85. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Gilead Sciences stock overvalued right now?
Based on GuruFocus' analysis, Gilead Sciences (FRA:GIS) is currently considered Significantly Overvalued. The stock's GF Value™ is €81.25, compared to a current price of €108.26 — trading 33.2% above its estimated fair value. The current Interest Coverage is 11.22, which is near median its 10-year median of 10.85 and 12.1% below the Drug Manufacturers industry median of 12.77. Gilead Sciences' overall GF Score™ is 75/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Gilead Sciences (FRA:GIS), the current Interest Coverage is 11.22 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Gilead Sciences (FRA:GIS) Overvalued in 2026?
Based on GuruFocus' analysis, Gilead Sciences stock appears to be overvalued.
The current stock price of €108.26 is trading 33.2% above its estimated GF Value™ of €81.25.
GuruFocus considers Gilead Sciences to be Significantly Overvalued.
Key valuation signals for FRA:GIS:
Interest Coverage: 11.22 (near median its 10-year median of 10.85)
GF Value™: €81.25 vs. price of €108.26 (33.2% above fair value)
Industry Position: 12.1% below the Drug Manufacturers median (#352 of 684)
No single metric tells the full story. See the FRA:GIS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Gilead Sciences develops and markets therapies to treat and prevent life-threatening infectious diseases, with the core of its portfolio focused on HIV and hepatitis B and C. Gilead's acquisition of Pharmasset brought rights to hepatitis C drug Sovaldi, which is also part of newer combination regimens that remain standards of care. Gilead is also growing its presence in the oncology market via acquisitions, led by CAR-T cell therapy Yescarta/Tecartus (from Kite) and breast and bladder cancer therapy Trodelvy (from Immunomedics).
75GF Score
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