P/E Ratio

The P/E ratio of 31.8x means investors are paying $31.80 for every $1 of ILMN’s earnings, a common gauge of how expensive a stock is relative to its profitability.

Compared to the sector median of 24.4x, ILMN trades at a premium, ranking in the 67th percentile among its sector peers—meaning it is more expensive than roughly two-thirds of them. The metric has been increasing over the last eight quarters, with a quarter-over-quarter jump of +45.7% from 21.8x, though a year-over-year comparison is not available; the most recent historical values are 31.8x, 21.8x, and 21.9x. A combination of an already above-median P/E and a sharply rising trend indicates that market expectations for future earnings growth have been increasing, but it also raises valuation risk if those earnings fail to materialize. This elevated and accelerating P/E does not contradict the overall NEUTRAL verdict, as it tempers enthusiasm by adding caution on valuation while not signaling an outright sell.

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