LLYNEUTRAL

EV/EBITDA

30.1x

Higher than 86% of Healthcare sector peers

Updated 25h ago

Sector Performance

86th percentile

LLY

30.1x

Sector Median

14.4x

Sector Avg

24.8x

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Deep Analysis

Eli Lilly’s EV/EBITDA of 30.1x means investors are paying 30.1 times the company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) for its entire enterprise value—a high multiple that suggests the market expects strong future growth.

For context, the healthcare sector median is 14.4x, placing Lilly in the 86th percentile among peers, meaning it trades at a substantial premium to most comparable companies. The year-over-year change is not available, but quarter-over-quarter the metric rose 7.1% from 28.1x to 30.1x, indicating upward pressure on valuation. A high valuation combined with a rising trend signals elevated risk: any disappointment in growth expectations could lead to a larger price correction. Conversely, the premium reflects conviction in Lilly’s pipeline, but the upward move increases sensitivity to earnings news. This metric contradicts the overall NEUTRAL verdict because a 30.1x EV/EBITDA in a sector with a 14.4x median typically implies a bullish stance, not a neutral one.

Frequently Asked Questions

What does the EV/EBITDA tell investors about LLY?

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.

How is the EV/EBITDA calculated?

EV/EBITDA is calculated as: Enterprise Value / EBITDA.

How does LLY's EV/EBITDA compare to its sector?

LLY's EV/EBITDA of 30.1x compares to a Healthcare sector median of 14.4x, placing it in the 86th percentile.

Who are LLY's closest peers by EV/EBITDA?

The closest Healthcare peers by EV/EBITDA include: AMGN (14.0x), CAH (14.8x), DGX (13.6x), ALGN (13.5x), AZN (15.9x).

The Formula

Enterprise Value / EBITDA

Why It Matters

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.