INVESTMENT ANALYSIS IN GILEAD SCIENCES COMMON STOCK

• Main Author: MAULANA TAUFIK 29114119, MUZAKI
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/23389
• Institution: Institut Teknologi Bandung

In current digital age where the world is more connected than ever, now investor can invest not <br /> <br /> only in their country but also in overseas stock market. This broader investment choice should <br /> <br /> result in broader opportunity as investors can find more companies with strong economic <br /> <br /> fundamental offered at sensible price. <br /> <br /> One sector that provide high growth opportunity for global investors is biotechnology sector and <br /> <br /> one of the biggest company that historically rewarded investor with bountiful gain is Gilead <br /> <br /> Sciences. From 2000 to its peak at July 2015, Gilead Sciences has astonishing 33% compounded <br /> <br /> annual growth rate (CAGR) compared with S&P 500 Index and Nasdaq Biotech Index of 4% <br /> <br /> and 11% return respectively. <br /> <br /> In contrary with past performance, currently Gilead Sciences’s stock price has tumbled. <br /> <br /> Compared to its competitors and the market in general, performance of Gilead Sciences is in <br /> <br /> contrast with the other and in 2016 loss 20% while its competitor gain up to 11% and the market <br /> <br /> up to 7%. Therefore it rises some business issue in the case of Gilead Sciences of whether the <br /> <br /> company is undervalued and worth investing at current price. <br /> <br /> Before investors can pull the trigger, they must carefully analyze the biotech industry, the reason <br /> <br /> why stock price is tumbled, and whether Gilead Sciences has room for growth in the future. The <br /> <br /> investor also required to exercise valuation analysis from those study and compare company’s <br /> <br /> intrinsic value and its market price. <br /> <br /> In this research, author conduct the investment analysis for Gilead Sciences which scopes are <br /> <br /> SWOT (strength, weakness, opportunity, and threat) analysis, PEST (political, economical, <br /> <br /> social, and technological) analyis, Five Porter analysis, ratio analysis, and valuation using <br /> <br /> discounted cash flow method (DCF) to determined Gilead Sciences attractiveness as investment <br /> <br /> candidate.