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Eli Lilly’s Valuation on May 17


Nov. 20 2020, Updated 3:21 p.m. ET

Eli Lilly’s valuation

Eli Lilly (LLY) reported EPS of $1.34 and revenues of $5.7 billion in the first quarter. Both results surpassed Wall Street analysts’ estimates.

The above chart compares Eli Lilly’s EPS and revenues since the first quarter of 2017. It also includes the estimate for this year’s second quarter with an EPS estimate of $1.29 and a revenue estimate of $6 billion. That’s a 3.7% growth in revenues compared to the second quarter of 2017. Let’s look next at Eli Lilly’s valuation multiples.

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Forward PE

PE multiples represent what one share can buy for an equity investor. On May 17, Eli Lilly was trading at a forward PE multiple of 15.2x, which compares to the industry average of 13.6x. Competitors Johnson & Johnson (JNJ), Merck & Co. (MRK), and Pfizer (PFE) are trading at lower forward PE multiples of 15.1x, 13.5x, and 11.9x, respectively.

Forward EV-to-EBITDA

On a capital-structure-neutral and excess-cash-adjusted basis, Lilly currently trades at a forward EV-to-EBITDA multiple of 12.4x, which is higher than the industry average of 11.7x as of May 16. Competitors Johnson & Johnson (JNJ), Merck & Co. (MRK), and Pfizer (PFE) are trading at lower forward EV-to-EBITDA multiples of 11.6x, 11.1x, and 10.4x, respectively.

The SPDR S&P Pharmaceuticals ETF (XPH) holds 4.4% of its total investments in Eli Lilly (LLY), 4.6% in Merck & Co. (MRK), 4.2% in Pfizer (PFE), and 4% in Johnson & Johnson (JNJ).

Check out all the data we have added to our quote pages. Now you can get a valuation snapshot, earnings and revenue estimates, and historical data, as well as dividend information. Take a look!


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