Gilead SciencesFRA:GIS -0.79%75 ROE % is 35.20% as of Mar. 2026, which is 40% above its 10-year median of 25.12. 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 936 Drug Manufacturers companies, Gilead Sciences ranks better than 95.94% on this metric.
The historical rank and industry rank for Gilead Sciences's ROE % or its related term are showing as below:
FRA:GIS'
s ROE % Range Over the Past 10 Years
Min: 0.6 Med: 25.12 Max: 72.16
Current: 43.23
During the past 13 years, Gilead Sciences's highest ROE % was 72.16%. The lowest was 0.60%. And the median was 25.12%.
FRA:GIS's ROE % is ranked better than 95.94% of 936
companies
in the Drug Manufacturers industry
Industry Median: 5.865
vs FRA:GIS: 43.23
Gilead Sciences (FRA:GIS) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
Gilead Sciences ROE % Related Terms
Gilead Sciences ROE % Historical Data
* Premium members only.
The historical data trend for Gilead Sciences's ROE % 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.
For the Drug Manufacturers - General subindustry, Gilead Sciences's ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Gilead Sciences's ROE % distribution charts can be found below:
* The bar in red indicates where Gilead Sciences's ROE % falls into.
* 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.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Gilead Sciences (FRA:GIS) has a ROE % of 35.20% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Gilead Sciences and its competitors. This is 40% above median its historical median of 25.12. Over the past decade, Gilead Sciences' ROE % has ranged from 0.60 to 72.16. According to the industry distribution chart, Gilead Sciences ranks #38 out of 936 companies in the Drug Manufacturers industry, placing it in the top 4.1%.
Is Gilead Sciences' ROE % too high?
Gilead Sciences' current ROE % of 35.20% is 40% above median its 10-year median of 25.12. Over the past 10 years, this metric has ranged from a low of 0.60 to a high of 72.16. The Drug Manufacturers industry median ROE % is 5.87. Gilead Sciences' value of 35.20% is 500.2% above this industry median. Based on the distribution chart, Gilead Sciences ranks #38 out of 936 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. 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' ROE % compare to AMGN and PFE?
According to the Drug Manufacturers industry distribution chart, Gilead Sciences ranks #38 out of 936 companies for ROE %. This places Gilead Sciences in the top 4% of its industry — outperforming the majority of peers. The industry median ROE % is 5.87. Gilead Sciences' value of 35.20% is 500.2% above this benchmark. Historically, Gilead Sciences' own ROE % has ranged from 0.60 to 72.16 over the past decade. While the company's 10-year median is 25.12 vs. the industry median of 5.87, Gilead Sciences has consistently been above 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 ROE % for a Drug Manufacturers company?
The median ROE % among Drug Manufacturers companies is 5.87, based on 936 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Gilead Sciences's current ROE % of 35.20% is 500.2% above 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Gilead Sciences and its competitors. For the Drug Manufacturers industry, the median ROE % is 5.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Gilead Sciences's current ROE % is 35.20%, which is 40% above median its own 10-year median of 25.12. 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 ROE % is 35.20%, which is 40% above median its 10-year median of 25.12 and 500.2% above the Drug Manufacturers industry median of 5.87. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For Gilead Sciences (FRA:GIS), the current ROE % is 35.20% 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:
ROE %: 35.20% (40% above median its 10-year median of 25.12)
GF Value™: €81.25 vs. price of €108.26 (33.2% above fair value)
Industry Position: 500.2% above the Drug Manufacturers median (#38 of 936)
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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