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 shift in its perceived value. The company appears overvalued based on its current metrics, with a P/E ratio of 15, a Price to Book Value of 7.30, and an EV to EBITDA of 11.39. In comparison, Amgen, Inc., a peer in the pharmaceuticals and biotechnology sector, has a higher P/E ratio of 19.10 and a lower EV to EBITDA of 13.08, suggesting that Gilead's valuation may not be justified relative to its competitors.
Gilead's recent stock performance has outpaced the S&P 500, with a year-to-date return of 32.95% compared to the index's 13.30%. However, the company's long-term returns over 10 years show stagnation, with both Gilead and the S&P 500 at 98.08%, which raises concerns about its growth potential despite recent gains. Overall, Gilead Sciences, Inc. is currently overvalued based on its valuation ratios and peer comparisons.