Gilead Sciences Inc.

Analyst Listing

The following analysts provide coverage for the subject firm as of May 2016:

Broker Analyst Analyst Email
Jefferies Brian Abrahams babrahams@jefferies.com
Piper Jaffray Joshua Schimmer joshua.e.schimmer@pjc.com
RBC Capital Markets Michael J. Yee michael.yee@rbccm.com
Leerink Partners Geoffrey C. Porges geoffrey.porges@leerink.com
Maxim Group Jason Kolbert jkolbert@maximgrp.com
Atlantic Equities Steve Chesney s.chesney@atlantic-equities.com
Cowen & Company Phil Nadeau phil.nadeau@cowen.com
Wells Fargo Securities Jim Birchenough jim.birchenough@wellsfargo.com
Needham Alan Carr acarr@needhamco.com
William Blair John Sonnier jsonnier@williamblair.com
BMO Capital Markets M. Ian Somaiya ian.somaiya@bmo.com
Credit Suisse Alethia Young alethia.young@credit-suisse.com
Evercore ISI Mark Schoenebaum mark.schoenebaum@evercoreisi.com
Guggenheim Securities Tony Butler tony.butler@guggenheimpartners.com

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Primary Input Data

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Derived Input Data

Derived Input

Label

2015 Value

2016
Value

Equational Form

Net Operating Profit Less Adjusted Taxes NOPLAT  14,034  11,955 NOPLAT\, =\, EBIT\, x\, (1 \,-\, Avg \,\,Tax\,\, Rate\,\, on\,\, EBIT)
Free Cash Flow FCF 19,582 15,921 FCF\,=NOPLAT\,+\,Non-Cash\,Expenses-\Delta NWC\,-\,NCS
Tax Shield TS 113 203 TS\,=\,Interest\,\,Paid\,\,x\,\, Avg \,\,Tax\,\,Rate\,\, on\,\, Pre-Tax\,\, Income
Invested Capital IC 41,948 47,758 IC\,=\,Fixed\,\,Operating\,\,Assets\,\,+\,\,Net\,\, Working\,\, Capital
Return on Invested Capital ROIC 33.46%  25.03% ROIC\,=\,\frac { NOPLAT }{ IC }
Net Investment NetInv 14,143 6,968 NetInv\,=\,{ {IC}_{1}}-{{IC}_{0}}+Depreciation
Investment Rate IR  100.78%  58.29% IR\,=\,\frac {NetInv}{NOPLAT}
Weighted Average Cost of Capital
WACCMarket  35.45%  24.52% WACC\,=\,\frac { E }{ V } { R }_{ E }\,+\,\frac { P }{ V } { R }_{ P }\,+\,\frac { D }{ V } { R }_{ D }\left( 1- Avg\,\, Tax\,\,Rate\,\,on\,\,Pre-Tax\,\,Income \right)
 WACCBook   8.93%   7.54%
Enterprise value
EVMarket  152,130  109,260 EV\,=\,Market\,\,Cap\,\,Equity\,+\,\,Long\,\,Term\,\,Debt\,-\,Cash
 EVBook  128,706  108,260
Long-Run Growth
g = IR x ROIC
 33.72%  14.59% Long-run growth rates of the income variable are used in the Continuing Value portion of the valuation models.
g = % \Delta GDP    2.50%    2.50%
Margin from Operations M  67.39%  60.67% M\,\,=\,\,\frac{EBIT}{SALES}
Depreciation/Amortization Rate D  4.84%  5.92% D\,\,=\,\,\frac{D+A}{EBITDA}

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Valuation Multiple Outcomes

The outcomes presented in this study are the result of original input data, derived data, and synthesized inputs.

Equational Form

Observed Value

Single-stage

multiple g solution

Two-stage valuation

model g solution

12/31/2015 12/31/2016 12/31/2015 12/31/2016 12/31/2015 12/31/2016

EV/SALES 

\frac {EV}{Sales} \,= \,\frac{ROIC\,  -\,  g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)\,(M)

 4.75  3.60  36.22%  24.12%  36.63% 24.12%

EV/EBITDA

\frac {EV}{EBITDA} \,= \,\frac{ROIC\,  -\,  g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)\,(1\,-\,D)

6.71 5.59 36.22% 24.12% 36.63% 24.12%

EV/NOPLAT

\frac {EV}{NOPLAT} \,= \,\frac{ROIC\,  -\,  g}{ROIC\,(WACC\,-\,g)}

 10.84 9.14 36.22% 24.12% 36.63% 24.12%

EV/FCFOPS

\frac {EV}{FCF_{OPS}} \,= \,\frac{ROIC\,  -\,  g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)

7.77 6.86 36.22% 24.12% 36.63% 24.12%

EV/EBIT

\frac {EV}{EBIT} \,= \,\frac{ROIC\,  -\,  g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)

7.05 5.94 36.22% 24.12% 36.63% 24.12%

EV/IC

\frac {EV}{IC} \,= \,\frac{ROIC\,  -\,  g}{WACC\,-\,g}

3.63 2.29 36.22% 24.12% 36.63% 24.12%

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