LLYNEUTRAL

LLY P/E Ratio Analysis

41.7x

Higher than 81% of Healthcare sector peers

Updated 125h ago·SEC filings & market data

Key Takeaway

The P/E ratio of 40.5x means investors pay $40.50 for every $1 of Eli Lilly's annual earnings, reflecting a premium price for expected future growth.

Sector Performance

81th percentile

LLY

41.7x

Sector Median

28.5x

Sector Avg

35.3x

Prior Period

40.5x(Aug 2026)

↓ Declining

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Deep Analysis

The P/E ratio of 40.5x means investors pay $40.50 for every $1 of Eli Lilly's annual earnings, reflecting a premium price for expected future growth.

That premium is well above the healthcare sector median of 28.5x, placing the stock in the 75th percentile among peers. The metric has been stable over the last eight quarters, with the year-over-year change not available and the quarter-over-quarter change at -3.7%. This combination of a high but stable valuation suggests the market consistently expects strong earnings, yet the slight quarterly decline hints at modest cooling in that enthusiasm. For investors, the elevated level implies higher risk if earnings slip, but the stable trend reduces the chance of a sudden valuation shock. This metric supports the overall NEUTRAL verdict, as the high P/E is balanced by its steady trajectory rather than signaling a clear buy or sell.

Frequently Asked Questions

What does the P/E Ratio tell investors about LLY?

Measures how much investors pay per dollar of earnings. A high P/E signals growth expectations; a low P/E may indicate undervaluation or slow growth.

How is the P/E Ratio calculated?

P/E Ratio is calculated as: Price / EPS.

How does LLY's P/E Ratio compare to its sector?

LLY's P/E Ratio of 41.7x compares to a Healthcare sector median of 28.5x, placing it in the 81th percentile.

Who are LLY's closest peers by P/E Ratio?

The closest Healthcare peers by P/E Ratio include: ABT (28.5x), CCLD (28.3x), ALGN (29.1x), AZN (27.0x), AMGN (24.7x).

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The Formula

Price / EPS

Why It Matters

Measures how much investors pay per dollar of earnings. A high P/E signals growth expectations; a low P/E may indicate undervaluation or slow growth.