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Is this Large Market Cap Stock target price reasonable for Gilead Sciences Inc. (NASDAQ:GILD)?

The company in question is, Gilead Sciences Inc. (NASDAQ:GILD) currently with a stock price of 81.43 (0.48% today). The market cap for Gilead Sciences Inc. is 108804.77, and is in the sector Healthcare, and Biotechnology industry. The target price for Gilead Sciences Inc. is 110.37. Currently Gilead Sciences Inc. is trading with a P/E of 6.93, and a forward P/E of 6.59. Average volume for Gilead Sciences Inc. is 10165.52 and so far today it is 8248424.

Performance in the last year for Gilead Sciences Inc. has been -25.30%. For EPS growth, Gilead Sciences Inc. has seen a growth of 62.00%, and is looking to grow in the next year to 2.29%. More long term stats show that EPS growth has been 48.30% over the last five years and could be 0.79% for the next five years. Gilead Sciences Inc. has seen sales growth quarter over quarter at 2.60%, with EPS growth quarter over quarter at -8.60%. The 20-day simple moving average is -3.62%, with the 200-day simple moving average coming to -12.18%.

Since the IPO date for Gilead Sciences Inc. on the 1/22/1992, Gilead Sciences Inc. has seen performance year to date to be -19.06%. With Gilead Sciences Inc. trading at 81.43, the dividend yield is 2.32%, and the EPS is 11.69.

So could Gilead Sciences Inc., be undervalued? Well as said before P/E is 6.93. The PEG is 8.83, P/S is 3.31 and the P/B is at 8.36. The P/cash is 13.08, with P/free cash flow at 6.84.

Gilead Sciences Inc. ability to deal with debt shows that the current ratio is 1.8, and the quick ratio is 1.6. This is with long term debt/equity at 1.57, and total debt/equity at 1.7.

In terms of margins, Gilead Sciences Inc. has a gross margin of 86.90%, an operating margin of 65.40% and a profit margin of 52.80%.Payout ratio for Gilead Sciences Inc. is 14.30%. Return on assets come to 36.60% with return on investment coming to 45.90%.

Insider ownership for Gilead Sciences Inc., is at 0.50% and institutional ownership comes to 81.90%. Outstanding shares are at 1342.44. While shares float is 1322.84. The float short is currently 1.68%, and short ratio is 2.19.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Stephen Butters

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