Eli Lilly’s valuation
Eli Lilly and Company (LLY) reported a top line of $6.4 billion in the second quarter, a 9% YoY (year-over-year) rise in revenue compared to $5.8 billion in the second quarter of 2017.
The above chart shows a comparison of the valuation multiples of Eli Lilly and its peers.
Eli Lilly is currently trading at a forward EV-to-EBITDA (enterprise value-to-EBITDA) multiple of ~14.4x, higher than the industry average of ~10.6x as of September 27. Novartis, GlaxoSmithKline, and Allergan are trading at forward EV-to-EBITDA multiples of 13.8x, 9.9x, and 11.5x, respectively.
Eli Lilly is currently trading at a forward EV-to-revenue multiple of ~4.8x compared to the industry average of ~4.8x as of September 27. Novartis, GlaxoSmithKline, and Allergan are trading at forward EV-to-revenue multiples of 4.4x, 3.2x, and 5.6x, respectively.
The Invesco Dynamic Pharmaceuticals ETF (PJP) holds 5.0% of its total investments in Eli Lilly and 2.7% in Allergan.