LLYNEUTRAL

LLY PEG Ratio Analysis

1.65x

Higher than 67% of Healthcare sector peers

Updated 125h ago·SEC filings & market data

Key Takeaway

The PEG ratio divides a stock’s price-to-earnings multiple by its expected earnings growth rate, giving a lower-cost view of growth; at 1.60x, LLY trades at a premium to its growth prospects.

Sector Performance

67th percentile

LLY

1.65x

Sector Median

1.07x

Sector Avg

1.77x

Prior Period

1.60x(Aug 2026)

↓ Declining
📊

Deep Analysis

The PEG ratio divides a stock’s price-to-earnings multiple by its expected earnings growth rate, giving a lower-cost view of growth; at 1.60x, LLY trades at a premium to its growth prospects.

This is well above the sector median of 0.73x, placing the stock at the 73rd percentile among healthcare peers, meaning most comparable companies carry cheaper growth valuations. The 8-quarter trend is N/A, but the year-over-year change is N/A, while quarter-over-quarter the metric jumped from 0.25x to 1.60x, a +540.0% move. That steep quarterly rise implies either a drop in expected earnings growth or a sharp price increase, making the stock less attractive on a growth-adjusted basis than three months ago. The combination of a high PEG level and rising trend points to elevated risk: the market is pricing in better growth than peers, leaving little room for disappointment. This metric contradicts the overall NEUTRAL verdict by signaling a potential overvaluation, though it does not alone force a bearish stance.

Frequently Asked Questions

What does the PEG Ratio tell investors about LLY?

The PEG ratio adjusts P/E for expected growth. A PEG below 1.0 may signal undervaluation; above 2.0 may suggest the growth story is priced in.

How is the PEG Ratio calculated?

PEG Ratio is calculated as: P/E Ratio / EPS Growth Rate.

How does LLY's PEG Ratio compare to its sector?

LLY's PEG Ratio of 1.65x compares to a Healthcare sector median of 1.07x, placing it in the 67th percentile.

Who are LLY's closest peers by PEG Ratio?

The closest Healthcare peers by PEG Ratio include: RHHBY (0.77x), ALGN (1.38x), ZBH (0.70x), DGX (1.48x), TECH (0.62x).

The Formula

P/E Ratio / EPS Growth Rate

Why It Matters

The PEG ratio adjusts P/E for expected growth. A PEG below 1.0 may signal undervaluation; above 2.0 may suggest the growth story is priced in.

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LLY

1.65x

Sector Median

1.07x

Sector Avg

1.77x

How LLY's PEG Ratio compares to sector peers.

Not financial advice. Research tool only. Data may be delayed.