Investment Thesis for Gilead Sciences, Inc. (NYSE: GILD)

Abstract

This working paper is an in-depth analysis of Gilead Sciences, Inc. Our analysis examines the economic factors that impact Gilead’s underlying business and how the firm has adapted to these ever-changing factors. This economic analysis is then combined with our proprietary, Hanke-Guttridge Discounted Cash Flow (HG-DCF) model to determine Gilead’s financial position. The HG-DCF model will be presented along-side Monte-Carlo simulations to reveal the distribution of probable free cash flows, the likelihood of future earnings, and the degree to which the firm’s drug pipeline is being considered by the current market valuation. In addition to these quantitative factors, we also examine the compensation plans of Gilead’s executives to assess alignment with shareholders. At the conclusion of this analysis, it is our intention for readers to understand Gilead’s business plan and the company’s financial standing to arrive at a sound investment decision.