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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 80.08 (-0.52% today). The market cap for Gilead Sciences Inc. is 105143.44, and is in the sector Healthcare, and Biotechnology industry. The target price for Gilead Sciences Inc. is 105.76. Currently Gilead Sciences Inc. is trading with a P/E of 7.05, and a forward P/E of 6.85. Average volume for Gilead Sciences Inc. is 10083.79 and so far today it is 9181000.

Performance in the last year for Gilead Sciences Inc. has been -23.72%. For EPS growth, Gilead Sciences Inc. has seen a growth of 62.00%, and is looking to grow in the next year to -0.76%. More long term stats show that EPS growth has been 48.30% over the last five years and could be 0.08% for the next five years. Gilead Sciences Inc. has seen sales growth quarter over quarter at -5.70%, with EPS growth quarter over quarter at -11.50%. The 20-day simple moving average is -3.06%, with the 200-day simple moving average coming to -11.26%.

Since the IPO date for Gilead Sciences Inc. on the 1/22/1992, Gilead Sciences Inc. has seen performance year to date to be -20.03%. With Gilead Sciences Inc. trading at 80.08, the dividend yield is 2.35%, and the EPS is 11.35.

So could Gilead Sciences Inc., be undervalued? Well as said before P/E is 7.05. The PEG is 88.17, P/S is 3.25 and the P/B is at 6.88. The P/cash is 12.01, with P/free cash flow at 7.23.

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 1.38, and total debt/equity at 1.42.

In terms of margins, Gilead Sciences Inc. has a gross margin of 87.10%, an operating margin of 63.00% and a profit margin of 50.50%.Payout ratio for Gilead Sciences Inc. is 15.20%. Return on assets come to 32.70% with return on investment coming to 45.90%.

Insider ownership for Gilead Sciences Inc., is at 0.50% and institutional ownership comes to 80.40%. Outstanding shares are at 1312.98. While shares float is 1310.68. The float short is currently 1.59%, and short ratio is 2.07.

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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Tony Dabbs

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