Eli Lilly and Company

NYSE:LLY Stock Report

Market Cap: US$1.0t

Eli Lilly Valuation

Is LLY undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Future Cash Flow Value

  • Significantly Below Future Cash Flow Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of LLY when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Ultimate guide to DCF valuation for stock investing

Learn how to determine fair value like the best investors in the world.

Below Future Cash Flow Value: LLY ($1123) is trading below our estimate of future cash flow value ($1688.45)

Significantly Below Future Cash Flow Value: LLY is trading below future cash flow value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for LLY?

Key metric: As LLY is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for LLY. This is calculated by dividing LLY's market cap by their current earnings.
What is LLY's PE Ratio?
PE Ratio37.5x
EarningsUS$26.71b
Market CapUS$1.00t

Price to Earnings Ratio vs Peers

How does LLY's PE Ratio compare to its peers?

The above table shows the PE ratio for LLY vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average48.3x
JNJ Johnson & Johnson
30.5xn/aUS$643.6b
MRK Merck
112.5x31.93%US$364.0b
PFE Pfizer
36.3x8.00%US$158.3b
BMY Bristol-Myers Squibb
14x-6.86%US$131.6b
LLY Eli Lilly
37.5x16.62%US$1.0t

Price-To-Earnings vs Peers: LLY is good value based on its Price-To-Earnings Ratio (37.5x) compared to the peer average (48.3x).

Historical Price to Earnings Ratio

Historical Price to Earnings Ratio compares a stock's price to its earnings over time. Higher ratios indicate that investors are willing to pay more for the stock.

Fetching historical data

Price to Earnings Ratio vs Industry

How does LLY's PE Ratio compare vs other companies in the US Pharmaceuticals Industry?

8 CompaniesPrice / EarningsEstimated GrowthMarket Cap
NDOI Endo
0.3xn/aUS$1.76b
CRMD CorMedix
3.3x-3.24%US$633.69m
ORMP Oramed Pharmaceuticals
1.1xn/aUS$198.84m
SDEV Stablecoin Development
0.09xn/aUS$44.35m
LLY 37.5xIndustry Avg. 16.0xNo. of Companies8PE01632486480+
8 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: LLY is expensive based on its Price-To-Earnings Ratio (37.5x) compared to the US Pharmaceuticals industry average (16x).

Price to Earnings Ratio vs Fair Ratio

What is LLY's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

LLY PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio37.5x
Fair PE Ratio45.3x

Price-To-Earnings vs Fair Ratio: LLY is good value based on its Price-To-Earnings Ratio (37.5x) compared to the estimated Fair Price-To-Earnings Ratio (45.3x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst LLY forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$1,123.00
US$1,318.66
+17.42%
11.92%US$1,600.00US$930.00n/a29
Sep ’27US$1,160.00
US$1,315.04
+13.37%
12.66%US$1,600.00US$850.00n/a29
Aug ’27US$1,148.84
US$1,276.96
+11.15%
13.59%US$1,600.00US$850.00n/a26
Jul ’27US$1,191.74
US$1,220.39
+2.40%
12.48%US$1,500.00US$850.00n/a28
Jun ’27US$1,082.20
US$1,215.10
+12.28%
12.60%US$1,500.00US$850.00n/a29
May ’27US$963.33
US$1,202.17
+24.79%
12.55%US$1,500.00US$850.00n/a29
Apr ’27US$954.52
US$1,209.21
+26.68%
12.62%US$1,500.00US$850.00n/a29
Mar ’27US$1,051.99
US$1,214.34
+15.43%
11.37%US$1,500.00US$870.00n/a29
Feb ’27US$1,037.15
US$1,146.30
+10.52%
13.62%US$1,500.00US$770.00n/a27
Jan ’27US$1,074.68
US$1,093.22
+1.73%
16.19%US$1,500.00US$770.00n/a27
Dec ’26US$1,057.89
US$1,036.45
-2.03%
17.08%US$1,500.00US$770.00n/a27
Nov ’26US$862.86
US$919.33
+6.54%
13.58%US$1,190.00US$700.00n/a27
Oct ’26US$825.42
US$888.15
+7.60%
14.84%US$1,190.00US$650.00n/a26
Sep ’26US$732.58
US$888.52
+21.29%
15.43%US$1,190.00US$650.00US$1,160.0027
Aug ’26US$762.33
US$956.67
+25.49%
14.37%US$1,190.00US$650.00US$1,148.8427
Jul ’26US$775.90
US$951.98
+22.69%
15.01%US$1,190.00US$650.00US$1,191.7427
Jun ’26US$737.67
US$955.31
+29.50%
15.09%US$1,190.00US$650.00US$1,082.2027
May ’26US$794.10
US$985.13
+24.06%
12.76%US$1,190.00US$650.00US$963.3326
Apr ’26US$805.23
US$1,010.47
+25.49%
11.88%US$1,190.00US$620.00US$954.5226
Mar ’26US$920.63
US$995.86
+8.17%
12.84%US$1,190.00US$620.00US$1,051.9926
Feb ’26US$811.08
US$975.28
+20.24%
14.99%US$1,190.00US$580.00US$1,037.1526
Jan ’26US$772.00
US$984.05
+27.47%
15.07%US$1,250.00US$580.00US$1,074.6827
Dec ’25US$795.35
US$992.82
+24.83%
14.86%US$1,250.00US$580.00US$1,057.8927
Nov ’25US$818.93
US$1,005.86
+22.83%
13.94%US$1,250.00US$580.00US$862.8627
Oct ’25US$884.48
US$995.42
+12.54%
13.87%US$1,150.00US$580.00US$825.4225
Sep ’25US$960.02
US$986.82
+2.79%
13.93%US$1,150.00US$580.00US$732.5825
US$1.32k
Fair Value
14.8% undervalued intrinsic discount
29
Number of Analysts

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2026/09/10 23:33
End of Day Share Price 2026/09/10 00:00
Earnings2026/06/30
Annual Earnings2025/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Eli Lilly and Company is covered by 53 analysts. 28 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
David ToungArgus Research Company
Emily FieldBarclays
Kerry HolfordBerenberg