Gilead Sciences Intrinsic Value Calculation – Gilead Sciences Boosts AlloVir Stake, Shares Soar 11% in Pre-Market Trading
July 1, 2023
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Gilead Sciences ($NASDAQ:GILD) is a biotechnology company that has invested heavily in the development of groundbreaking treatments for serious diseases and medical conditions. This includes treatments for cancer, HIV/AIDS, viral hepatitis, and multiple sclerosis. On Wednesday, Gilead Sciences announced their purchase of 2,930,870 common shares in AlloVir, a biotechnology company whose primary focus is on developing next-generation cell and gene therapies to treat cancers and other diseases.
Gilead Sciences’ investment in AlloVir was met with positive reception from the market, as pre-market trading opened Thursday morning with a 11% rise in the stock price. This surge of confidence from investors was likely due to Gilead Sciences’ past success of identifying promising new treatments in the healthcare sector and investing in companies like AlloVir that have the potential for great future success.
Analysis – Gilead Sciences Intrinsic Value Calculation
We at GoodWhale conducted an extensive analysis of GILEAD SCIENCES‘s wellbeing, and our proprietary Valuation Line came up with an intrinsic value of around $71.0 for GILEAD SCIENCES’s stock. This means that the stock is currently trading at $77.1, a fair price but still overvalued by 8.6%. This discrepancy might be indicative of investor sentiment towards the company or other external factors. Nonetheless, our analysis indicates that GILEAD SCIENCES’s stock is worth monitoring for any changes in price, as it could be a good buying opportunity when the share price reflects its true intrinsic value. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Gilead Sciences. More…
| Total Revenues | Net Income | Net Margin |
| 27.04k | 5.58k | 32.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Gilead Sciences. More…
| Operations | Investing | Financing |
| 8.98k | -2.22k | -6.08k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Gilead Sciences. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 61.88k | 40.94k | 17.02 |
Key Ratios Snapshot
Some of the financial key ratios for Gilead Sciences are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 6.0% | 42.8% | 30.3% |
| FCF Margin | ROE | ROA |
| 31.4% | 24.1% | 8.3% |
Peers
In the biopharmaceutical industry, competition is fierce. Among the companies vying for market share are Gilead Sciences Inc, Eli Lilly and Co, Amgen Inc, and SCYNEXIS Inc. All of these companies are working to develop new and innovative treatments for a variety of diseases.
– Eli Lilly and Co ($NYSE:LLY)
Eli Lilly and Co is a pharmaceutical company with a market cap of 316.8 billion as of May 2021. The company has a return on equity of 45.88% and is headquartered in Indianapolis, Indiana. Eli Lilly and Co develops and markets prescription medications and over-the-counter products. The company’s products are available in approximately 120 countries.
– Amgen Inc ($NASDAQ:AMGN)
Amgen Inc is a biopharmaceutical company with a market cap of 135.3B as of 2022. The company has a return on equity of 460.37%. Amgen Inc is a biopharmaceutical company that discovers, develops, manufactures, and delivers human therapeutics worldwide. The company offers products for the treatment of oncology/hematology, cardiovascular, inflammation, bone health, and nephrology.
– SCYNEXIS Inc ($NASDAQ:SCYX)
SCYNEXIS Inc. is a biopharmaceutical company, which focuses on the development and commercialization of novel anti-infectives to address unmet therapeutic needs. The company’s lead product, SCY-078, is an oral and intravenous antifungal agent in Phase 3 clinical development for the treatment of serious and life-threatening invasive fungal infections. SCYNEXIS Inc. was founded by Peter R. Lupton, David P. Lupton and George W. Schmidt in December 1997 and is headquartered in Durham, NC.
Summary
Investing analysis of Gilead Sciences has shown positive results, with a 11% increase in pre-open trading Thursday following the announcement of the purchase of 2,930,870 common shares. This news has further strengthened the company’s stock and has improved investor confidence in the company’s potential. With more investors becoming more interested in Gilead Sciences, the company is likely to move forward with better performance in the near future.
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