Gilead Sciences Inc (GILD) is overvalued and Johnson & Johnson (JNJ) is overvalued.
Both trade above our estimate of their intrinsic value. JNJ is the closer of the two: -32%, against -37% for GILD.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 7.3% (average of 2 methods) values the shares at $111.56; the price of $152.67 is 37% above that value, and 82% of that value comes from beyond year five.
Leak Score 61/100 on 9 of 12 signals
Discounting its cash flows at 7.1% (average of 3 methods) values the shares at $204.15; the price of $269.19 is 32% above that value, and 83% of that value comes from beyond year five.
Leak Score 50/100 on 9 of 12 signals
| Metric | GILD | JNJ |
|---|---|---|
| Verdict | Overvalued | Overvalued |
| Price | $152.67 | $269.19 |
| Intrinsic value | $111.56 | $204.15 |
| Margin of safety | -37% | -32% |
| Leak Score | 61/100 (9/12) | 50/100 (9/12) |
| Market cap | $189.3B | $648.7B |
| Revenue growth, 5 years | 3.6% | 2.7% |
| Operating margin | 39.0% | 27.0% |
| Net margin | -10.6% | 21.5% |
| Return on equity | -20.6% | 25.7% |
| Debt to equity | 2.22 | 0.58 |
| P/E | — | 31.2x |
| Forward P/E | 15.4x | 21.2x |
| P/B | 16.0x | 7.6x |
| Dividend yield | 2.1% | 2.0% |