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	WACC_Market	35.45%	24.52%	$WACC\,=\,\frac { E }{ V } { R }_{ E }\,+\,\frac { P }{ V } { R }_{ P }\,+\,\frac { D }{ V } { R }_{ D }\left( 1- Avg\,\, Tax\,\,Rate\,\,on\,\,Pre-Tax\,\,Income \right)$
Weighted Average Cost of Capital	WACC_Book	8.93%	7.54%
Enterprise value	EV_Market	152,130	109,260	$EV\,=\,Market\,\,Cap\,\,Equity\,+\,\,Long\,\,Term\,\,Debt\,-\,Cash$
Enterprise value	EV_Book	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.
Long-Run Growth	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
Equational Form	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/FCF_OPS $\frac {EV}{FCF_{OPS}} \,= \,\frac{ROIC\, -\, g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)$	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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