LLY EV/EBITDA Analysis

The EV/EBITDA multiple of 26.9x means investors are paying 26.9 times Eli Lilly's operating earnings (earnings before interest, taxes, depreciation, and amortization) for the entire company's value, including debt.

This is well above the healthcare sector median of 16.1x, placing the stock at the 82nd percentile among its peers—meaning it is pricier than most comparable companies. The metric has been decreasing over the last eight quarters, though the most recent quarter shows a +1.9% increase from 26.4x to 26.9x; the year-over-year change is not available. The combination of a high valuation level with a generally declining trend suggests that while the stock remains expensive relative to its sector, the valuation pressure has been easing over time, tempering some downside risk. Still, the latest upward move in the multiple indicates that risk has not fully dissipated. This metric leans toward supporting the overall NEUTRAL verdict: the elevated multiple implies limited margin of safety, but the recent downward trend prevents a bearish stance.

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