Stock fact sheet · data as of
Gilead Sciences, Inc. (GILD): fair value, margin of safety and Wheel Score
Healthcare · Drug Manufacturers - General · United States · Speculative / Distressed
Is GILD undervalued?
Gilead Sciences, Inc. (GILD) closed at 157.37 on 16 Oct 2026, 14% above the GLS average fair value of 138.25. Only 1 of the 3 models that produced a number value the shares above the current price. The margin of safety is negative, so the stock fails the "below fair value" rule of the Sunday Scan; a premium of this size is common for companies whose growth the models are conservative about.
Only 3 of the nine models produced a value (DCF, 10 Cap, DDM); the others need a dividend, positive free cash flow or positive book value the company does not have yet, so the average rests on a narrow base.
The nightly engine files GILD under Speculative / Distressed - negative earnings or a Piotroski score of 3 or less - which caps its Wheel Score at 45 and keeps it out of the Sunday Scan.
Nine valuation models for GILD
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 132.12 | -16% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | - | - | The most a defensive investor pays for the earnings and book value per share; no value tonight |
| Graham Growth | - | - | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields; no value tonight |
| Lynch | - | - | EPS × the earnings growth rate (PEG of 1), growth capped at 25%; no value tonight |
| GLS Growth | - | - | EPS compounded ten years at the blended growth rate, discounted back at 15% a year; no value tonight |
| 10 Cap | 234.82 | +49% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | - | - | Eight years of compounded free cash flow: the price at which the business pays for itself; no value tonight |
| DDM | 47.82 | -70% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | - | - | Earnings power value: current EPS capitalised at 9% with no growth; no value tonight |
| Zombie (liquidation) | -14.57 | -109% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 153.13 | -3% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Financial health is average - GILD passes 5 of the nine Piotroski tests, which falls one point short of the Sunday Scan's "6 or more" rule. The Financials tab on the Quote page shows which tests fail. The GLS Moat score is 5.1 out of 10: a ten-year record that is consistent in some of the metrics the score tracks (revenue, earnings, margins, cash flow, returns on capital) and patchy in others.
Returns on capital are high - ROIC 17.9%, ROE 37.5%, ROA 14.4% - with debt at 1.10 times equity and a free-cash-flow yield of 6.8%.
The dividend yield is 2.07% at a payout ratio of -126%; for a wheel trader holding assigned shares the dividend adds to the covered-call premium, and the ex-dividend date is worth knowing before a call is sold. Revenue comes mainly from Royalty, contract and other revenues 88%, Veklury 12% (quarter Q2 FY2026).
Institutional ownership scores 10/10, insider activity 2/10 and Congressional trading 3/10 on the GLS smart-money scales.
| Piotroski F-score | 5 / 9 | ROIC | 17.9% |
|---|---|---|---|
| GLS Moat | 5.1 / 10 | ROE | 37.5% |
| Debt / equity | 1.10 | ROA | 14.4% |
| Free-cash-flow yield | 6.8% | Payout ratio | -126% |
| Institutions | 10 / 10 | Insiders · Congress | 2 · 3 / 10 |
Wheel Score 45: Weak
GILD scores 45 out of 100 on the Wheel Score, in the Weak band (under 50), capped at 45 because the engine files it as Speculative / Distressed. Value 7/25, Health 11/20, Moat 8/15, Premium 20/20, Stability 20/20. The score is not a judgement on the company; it says the price, quality and premium do not line up for selling puts on it today.
Implied volatility is 40% on the near-the-money contracts 20-60 days out - inside the 35-60% range the Wheel Score pays full marks for: enough premium to be worth selling, not so much that the risk is unpaid. The option chain is deep: 141,636 contracts of open interest across all expiries, which means tight fills at most strikes.
Volume runs at 8.3M shares a day on a market cap of $195.1B, with a beta of 0.33 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score gives that 20 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 7 / 25 | -14% margin of safety | |
| Health | 11 / 20 | Piotroski 5/9 | |
| Moat | 8 / 15 | moat 5.1/10 | |
| Premium | 20 / 20 | implied volatility 40% | |
| Stability | 20 / 20 | 8.3M shares/day, $195.1B cap, beta 0.33 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
Gilead Sciences, Inc. reports earnings on 29 Oct 2026 (after the close) - inside the 14-day window the Sunday Scan avoids, because a put sold now would carry the report's gap risk.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Drug Manufacturers - General
The 12 companies below are the closest to Gilead Sciences, Inc. by market cap within the Drug Manufacturers - General industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| NVO Novo Nordisk A/S | 39.22 | 173.67 | +77% | 91Prime | $174.9B |
| PFE Pfizer Inc. | 29.21 | 19.78 | -48% | 58Fair | $166.5B |
| AMGN Amgen Inc. | 434.03 | 330.55 | -31% | 65Good | $234.7B |
| AZN AstraZeneca PLC | 166.68 | 184.44 | +10% | 85Prime | $258.5B |
| NVS Novartis AG | 150.38 | 144.89 | -4% | 68Good | $285.8B |
| BMY Bristol-Myers Squibb Company | 60.57 | 76.74 | +21% | 86Prime | $123.7B |
| MRK Merck & Co., Inc. | 145.35 | 69.51 | -109% | 59Fair | $358.6B |
| GSK GSK plc | 49.02 | 43.72 | -12% | 70Good | $98.2B |
| SNY Sanofi | 39.77 | 63.49 | +37% | 86Prime | $97.4B |
| ABBV AbbVie Inc. | 283.38 | 103.06 | -175% | 65Good | $500.8B |
| JNJ Johnson & Johnson | 253.28 | 139.73 | -81% | 54Fair | $610.4B |
| BIIB Biogen Inc. | 235.35 | 197.03 | -19% | 58Fair | $34.8B |
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Start free See the Sunday ScanQuestions about GILD
Is GILD undervalued right now?
No: at 157.37 the stock trades 14% above the GLS average fair value of 138.25 (data as of 16 Oct 2026). The margin of safety is negative.
What is the Wheel Score of GILD and what does it mean?
GILD scores 45 out of 100 (Weak). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for GILD?
138.25 per share as of 16 Oct 2026 - the simple average of the 3 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Gilead Sciences, Inc. report earnings next?
The next earnings report is due on 29 Oct 2026 (after the close), 13 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does GILD have listed options, and how liquid are they?
Yes. The nightly snapshot found 1,000 listed contracts with 141,636 open interest across all expiries and implied volatility of 40% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.