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Gilead Sciences (NAS:GILD) PE Ratio

: 33.14 (As of Today)
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The PE Ratio, or Price-to-Earnings ratio, or P/E Ratio, is a financial ratio used to compare a company's market price to its Earnings per Share (Diluted). As of today (2022-11-30), Gilead Sciences's share price is $87.83. Gilead Sciences's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Sep. 2022 was $2.65. Therefore, Gilead Sciences's PE Ratio for today is 33.14.


The historical rank and industry rank for Gilead Sciences's PE Ratio or its related term are showing as below:

GILD' s PE Ratio Range Over the Past 10 Years
Min: 6.68   Med: 16.83   Max: 855.75
Current: 33.14


During the past 13 years, the highest PE Ratio of Gilead Sciences was 855.75. The lowest was 6.68. And the median was 16.83.


GILD's PE Ratio is ranked worse than
65.14% of 611 companies
in the Drug Manufacturers industry
Industry Median: 21.80 vs GILD: 33.14

Gilead Sciences's Earnings per Share (Diluted) for the three months ended in Sep. 2022 was $1.42. Its Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Sep. 2022 was $2.65.

As of today (2022-11-30), Gilead Sciences's share price is $87.83. Gilead Sciences's EPS without NRI for the trailing twelve months (TTM) ended in Sep. 2022 was $2.65. Therefore, Gilead Sciences's PE Ratio without NRI for today is 33.14.

During the past 13 years, Gilead Sciences's highest PE Ratio without NRI was 855.75. The lowest was 6.68. And the median was 16.83.

Gilead Sciences's EPS without NRI for the three months ended in Sep. 2022 was $1.42. Its EPS without NRI for the trailing twelve months (TTM) ended in Sep. 2022 was $2.65.

During the past 12 months, Gilead Sciences's average EPS without NRI Growth Rate was -54.80% per year. During the past 3 years, the average EPS without NRI Growth Rate was 5.70% per year. During the past 5 years, the average EPS without NRI Growth Rate was -33.30% per year. During the past 10 years, the average EPS without NRI Growth Rate was -5.20% per year.

During the past 13 years, Gilead Sciences's highest 3-Year average EPS without NRI Growth Rate was 113.80% per year. The lowest was -143.50% per year. And the median was 5.20% per year.

Gilead Sciences's EPS (Basic) for the three months ended in Sep. 2022 was $1.43. Its EPS (Basic) for the trailing twelve months (TTM) ended in Sep. 2022 was $2.66.


Gilead Sciences (NAS:GILD) PE Ratio Historical Data

The historical data trend for Gilead Sciences's PE Ratio 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.

* Premium members only.

Gilead Sciences Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
PE Ratio Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 20.41 15.00 15.40 582.60 14.73

Gilead Sciences Quarterly Data
Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22
PE Ratio Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 11.92 14.73 16.61 18.84 23.28

Gilead Sciences (NAS:GILD) PE Ratio Competitive Comparison

For the Drug Manufacturers - General subindustry, Gilead Sciences's PE Ratio, along with its competitors' market caps and PE Ratio 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 (NAS:GILD) PE Ratio Distribution

For the Drug Manufacturers industry and Healthcare sector, Gilead Sciences's PE Ratio distribution charts can be found below:

* The bar in red indicates where Gilead Sciences's PE Ratio falls into.



Gilead Sciences PE Ratio Calculation

The PE Ratio, or Price-to-Earnings ratio, or P/E Ratio, is a financial ratio used to compare a company's market price to its Earnings per Share (Diluted). It is the most widely used ratio in the valuation of stocks.

Gilead Sciences's PE Ratio for today is calculated as

PE Ratio=Share Price/Earnings per Share (Diluted) (TTM)
=87.83/2.650
=33.14

Gilead Sciences's Share Price of today is $87.83.
Gilead Sciences's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Sep. 2022 adds up the quarterly data reported by the company within the most recent 12 months, which was $2.65.

* 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.

It can also be calculated from the numbers for the whole company:


There are at least three kinds of PE Ratios used by different investors. They are Trailing Twelve Month PE Ratio or PE Ratio (TTM), Forward PE Ratio, or PE Ratio without NRI. A new PE Ratio based on inflation-adjusted normalized PE Ratio is called Shiller PE Ratio, after Yale professor Robert Shiller.

In the calculation of PE Ratio, the earnings per share used are the earnings per share over the past 12 months. For Forward PE Ratio, the earnings are the expected earnings for the next twelve months. In the case of PE Ratio without NRI, the reported earnings less the non-recurring items are used.

For Shiller PE Ratio, the earnings of the past 10 years are inflation-adjusted and averaged. Since it looks at the average over the last 10 years, Shiller PE Ratio is also called PE10.


Gilead Sciences  (NAS:GILD) PE Ratio Explanation

The PE Ratio can be viewed as the number of years it takes for the company to earn back the price you pay for the stock. For example, if a company earns $2 a share per year, and the stock is traded at $30, the PE Ratio is 15. Therefore it takes 15 years for the company to earn back the $30 you paid for its stock, assuming the earnings stays constant over the next 15 years.

In real business, earnings never stay constant. If a company can grow its earnings, it takes fewer years for the company to earn back the price you pay for the stock. If a company's earnings decline it takes more years. As a shareholder, you want the company to earn back the price you pay as soon as possible. Therefore, lower P/E stocks are more attractive than higher P/E stocks so long as the PE Ratio is positive. Also for stocks with the same PE Ratio, the one with faster growth business is more attractive.

If a company loses money, the PE Ratio becomes meaningless.

To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the PE Ratio divided by the growth ratio. He thinks a company with a PE Ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a PE Ratio of 20, instead of a company growing 10% a year with a PE Ratio of 10.

Because the PE Ratio measures how long it takes to earn back the price you pay, the PE Ratio can be applied to the stocks across different industries. That is why it is the one of the most important and widely used indicators for the valuation of stocks.

Similar to the PE Ratio without NRI or PS Ratio or Price-to-Operating-Cash-Flow or Price-to-Free-Cash-Flow , the PE Ratio measures the valuation based on the earning power of the company. This is where it is different from the PB Ratio , which measures the valuation based on the company's balance sheet.


Be Aware

Investors need to be aware that the PE Ratio can be misleading a lot of times, especially when the underlying business is cyclical and unpredictable. As Peter Lynch pointed out, cyclical businesses have higher profit margins at the peaks of the business cycles. Their earnings are high and PE Ratios are artificially low. It is usually a bad idea to buy a cyclical business when the PE Ratio is low. A better ratio to identify the time to buy a cyclical businesses is the PS Ratio .

PE Ratio can also be affected by non-recurring-items such as the sale of part of businesses. This may increase for the current year or quarter dramatically. But it cannot be repeated over and over. Therefore PE Ratio without NRI is a more accurate indication of valuation than PE Ratio.


Gilead Sciences PE Ratio Related Terms

Thank you for viewing the detailed overview of Gilead Sciences's PE Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


Gilead Sciences (NAS:GILD) Business Description

Gilead Sciences logo
Address
333 Lakeside Drive, Foster, CA, USA, 94404
Gilead Sciences develops and markets therapies to treat life-threatening infectious diseases, with the core of its portfolio focused on HIV and hepatitis B and C. The acquisitions of Corus Pharma, Myogen, CV Therapeutics, Arresto Biosciences, and Calistoga have broadened this focus to include pulmonary and cardiovascular diseases and cancer. Gilead's acquisition of Pharmasset brought rights to hepatitis C drug Sovaldi, which is also part of combination drug Harvoni, and the Kite, Forty Seven, and Immunomedics acquisitions boost Gilead's exposure to cell therapy and noncell therapy in oncology.
Executives
Bluestone Jeffrey director C/O PROVENTION BIO, INC. P.O. BOX 666 OLDWICK NJ 08858
Welters Anthony director
Rodriguez Javier director 601 HAWAII ST. EL SEGUNDO CA 90245
Wilfong Diane E. officer: SVP, Controller & CAO 333 LAKESIDE DRIVE FOSTER CITY CA 94404
Horning Sandra director 333 LAKESIDE DRIVE FOSTER CITY CA 94404
Parsey Merdad officer: Chief Medical Officer 333 LAKESIDE DRIVE FOSTER CITY CA 94404
Dickinson Andrew D officer: EVP, Chief Financial Officer 333 LAKESIDE DRIVE FOSTER CITY CA 94404
Mercier Johanna officer: Chief Commercial Officer 333 LAKESIDE DRIVE FOSTER CITY CA 94404
O'day Daniel Patrick director, officer: Chairman & CEO 333 LAKESIDE DRIVE FOSTER CITY CA 94404
Hamill Laura officer: EVP, Worldwide Commercial Ops 333 LAKESIDE DRIVE FOSTER CITY CA 94404
Manwani Harish director UNILEVER ASIA PRIVATE LTD 20 PASIR PANJANG,0622 MAPLETREE BUS CTY SINGAPORE U0 117439
Pletcher Brett A officer: EVP, Gen Counsel & Corp Sec 333 LAKESIDE DRIVE FOSTER CITY X1 94404
Mchutchison John G officer: Chief Scientific Off/HeadR&D 333 LAKESIDE DRIVE FOSTER CITY X1 94404
Barton Jacqueline K director 1200 EAST CALIFORNIA BLVD PASADENA CA 91125-0072
Meyers James R officer: EVP Worldwide Commercial Ops GILEAD SCIENCES, INC. 333 LAKESIDE DRIVE FOSTER CITY CA 94404

Gilead Sciences (NAS:GILD) Headlines

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