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What’s Eli Lilly’s Valuation as of September 27?

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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.

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Forward PE

Eli Lilly is currently trading at a forward PE multiple of ~18.5x compared to the industry average of ~14.3x as of September 27. Competitors Novartis (NVS), GlaxoSmithKline (GSK), and Allergan (AGN) are trading at forward PE multiples of 15.7x, 13.5x, and 11.3x, respectively.

Forward EV-to-EBITDA

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.

Forward EV-to-revenue

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.

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