Is Gilead Sciences, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Gilead Sciences, Inc. has moved from expensive to very expensive, indicating a significant increase in perceived overvaluation. The company is currently considered overvalued based on its P/E ratio of 15, which is lower than the peer average of approximately 15.53, and an EV to EBITDA ratio of 11.39 compared to Amgen, Inc.'s 13.08. Additionally, the PEG ratio stands at 0.81, suggesting that while growth may be priced attractively, the overall valuation metrics indicate a premium relative to its peers.
In terms of performance, Gilead has outperformed the S&P 500 over multiple periods, with a year-to-date return of 32.95% compared to the S&P 500's 13.30%, and a one-year return of 40.58% against 14.08%. This strong performance may reflect investor optimism, but the elevated valuation ratios suggest that the stock may not be a prudent investment at current levels.