GILD — Valuation Models

Interactive models with editable assumptions. All calculations run client-side.

Valuation Summary

Model	Intrinsic Value	vs Price ($150.03)
DCF	$294.05	+96.0%
Graham Number	$52.83	-64.8%
Reverse DCF	—	implied g: 12.3%
DDM	$67.57	-55.0%
EV/EBITDA	$148.88	-0.8%

Values reflect default assumptions. Adjust inputs in each model below to update.

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $7.54B

Near-term growth (yrs 1–5)(%)Rev: 4.7% / EPS: 23.4%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 5.65%

Computed WACC: 5.65%

Cost of equity (Re)6.43%(Rf 4.30% + β 0.39 × ERP 5.50%)

Cost of debt (Rd)0.00%(no debt / unavailable → 0%)

Tax rate (T)21.00%(US statutory fallback)

Equity weight (E/V)87.94%

Debt weight (D/V)12.06%

Results

Intrinsic Value / share$682.61

Current Price$150.03

Upside / Downside+355.0%

Net Debt (used)$15.93B

Sensitivity: WACC (rows) × Near-term g (cols)

WACC \ Near-term	15.4%	19.4%	23.4%	27.4%	31.4%
7.0%	$326.30	$386.56	$455.28	$533.30	$621.57
8.0%	$257.84	$305.44	$359.68	$421.23	$490.83
9.0%	$210.82	$249.74	$294.05	$344.32	$401.11
10.0%	$176.64	$209.26	$246.37	$288.45	$335.96
11.0%	$150.74	$178.60	$210.28	$246.16	$286.66

2 — Graham Number

Assumptions

MultiplierGraham used 22.5 (15× P/E × 1.5× P/B)

EPS (trailing)($)Yahoo: $6.78

Book Value / share($)Yahoo: $18.29

Results

Graham Number$52.83

Current Price$150.03

Margin of Safety-64.8%

Formula: √(22.5 × max(0,EPS) × max(0,BVPS))

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 5.65%

Terminal growth rate(%)

Computed WACC: 5.65%

Cost of equity (Re)6.43%(Rf 4.30% + β 0.39 × ERP 5.50%)

Cost of debt (Rd)0.00%(no debt / unavailable → 0%)

Tax rate (T)21.00%(US statutory fallback)

Equity weight (E/V)87.94%

Debt weight (D/V)12.06%

Results

Current Price$150.03

Implied Near-term FCF Growth0.3%

Historical Revenue Growth4.7%

Historical Earnings Growth23.4%

Base FCF (TTM)$7.54B

Implied growth is the FCF growth rate (yrs 1–5) that makes the DCF intrinsic value equal the current price. Long-term growth is set to half the implied near-term rate.

4 — Dividend Discount Model (DDM)

Assumptions

Annual dividend D0($/share)Yahoo: $3.28

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$67.57

Current Price$150.03

Upside / Downside-55.0%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $14.58B

Target EV/EBITDA multipleCurrent: 13.8×

Net Debt($B)Default: $15.93B

Results

Implied Equity Value / share$148.88

Current Price$150.03

Upside / Downside-0.8%

Implied EV$200.75B

Sensitivity: EV/EBITDA multiple (rows) × Net Debt (cols)

Mult \ Net Debt	$7.93B	$11.93B	$15.93B	$19.93B	$23.93B
9.8x	$108.36	$105.14	$101.91	$98.69	$95.47
11.8x	$131.84	$128.62	$125.40	$122.18	$118.95
13.8x	$155.33	$152.11	$148.88	$145.66	$142.44
15.8x	$178.81	$175.59	$172.37	$169.15	$165.92
17.8x	$202.30	$199.07	$195.85	$192.63	$189.41

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