Latest Ratios: P/E Ratio 48.7x · EV/EBITDA 77.3x · ROE 13.5%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $6.0B | $3.8B | $2.0B | $1.3B | $1.1B | $2.7B | $1.6B | $2.1B | $3.3B | $3.2B | $2.1B |
| Enterprise Value | $6.3B | $4.1B | $1.9B | $1.3B | $1.2B | $3.0B | $2.0B | $2.6B | $3.2B | $3.2B | $2.2B |
| P/E Ratio → | 48.68 | 30.84 | — | 24.29 | — | 46.25 | — | 3.27 | 22.77 | 258.36 | — |
| P/S Ratio | 22.31 | 14.31 | 11.73 | 9.66 | 5.74 | 11.03 | 9.84 | 17.13 | 12.99 | 22.79 | 19.42 |
| P/B Ratio | 5.95 | 3.77 | 2.36 | 1.81 | 1.89 | 3.24 | 2.27 | 2.69 | 5.82 | 7.68 | 5.71 |
| P/FCF | 122.28 | 78.45 | 25.32 | — | 9.40 | 38.03 | 32.11 | — | 17.93 | 37.21 | 61.04 |
| P/OCF | 121.16 | 77.74 | 20.19 | 25.58 | 8.17 | 33.81 | 29.49 | — | 16.83 | 34.36 | 33.60 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 15.34 | 11.34 | 9.53 | 5.96 | 12.29 | 12.34 | 21.94 | 12.66 | 22.95 | 20.08 |
| EV / EBITDA | 77.27 | 50.80 | 149.97 | 25.82 | 25.19 | 19.18 | 30.83 | 3.10 | 17.65 | 40.18 | 39.67 |
| EV / EBIT | 132.57 | 25.88 | 341.06 | 19.46 | 30.93 | 32.33 | 70.31 | 3.17 | 14.37 | 47.18 | 105.21 |
| EV / FCF | — | 84.11 | 24.48 | — | 9.75 | 42.39 | 40.26 | — | 17.48 | 37.47 | 63.11 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 97.5% | 97.5% | 93.4% | 73.3% | 73.1% | 74.3% | 81.4% | 90.6% | 97.5% | 96.2% | 94.9% |
| Operating Margin | 17.6% | 17.6% | -13.5% | 9.1% | 1.5% | 43.0% | 22.9% | 671.0% | 65.1% | 48.2% | 40.3% |
| Net Profit Margin | 46.4% | 46.4% | -2.4% | 39.7% | -17.0% | 23.7% | -1.8% | 523.2% | 57.0% | 8.9% | -1.5% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 13.5% | 13.5% | -0.5% | 8.0% | -4.7% | 7.5% | -0.4% | 94.8% | 29.3% | 3.2% | -0.5% |
| ROA | 9.9% | 9.9% | -0.5% | 6.7% | -3.2% | 4.3% | -0.2% | 45.7% | 14.8% | 2.0% | -0.3% |
| ROIC | 3.4% | 3.4% | -2.3% | 1.4% | 0.3% | 6.9% | 2.3% | 66.3% | 26.7% | 11.5% | 8.8% |
| ROCE | 3.9% | 3.9% | -2.7% | 1.7% | 0.3% | 8.2% | 2.7% | 60.8% | 20.3% | 16.9% | 9.9% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.44 | 0.44 | 0.01 | 0.01 | 0.15 | 0.40 | 0.64 | 0.85 | 1.13 | 0.54 | 0.57 |
| Debt / EBITDA | 5.58 | 5.58 | 0.56 | 0.13 | 1.89 | 2.10 | 6.97 | 0.76 | 3.53 | 2.79 | 3.86 |
| Net Debt / Equity | — | 0.27 | -0.08 | -0.02 | 0.07 | 0.37 | 0.58 | 0.75 | -0.15 | 0.05 | 0.19 |
| Net Debt / EBITDA | 3.42 | 3.42 | -5.16 | -0.35 | 0.92 | 1.97 | 6.24 | 0.68 | -0.45 | 0.28 | 1.30 |
| Debt / FCF | — | 5.65 | -0.84 | — | 0.36 | 4.35 | 8.16 | — | -0.45 | 0.26 | 2.07 |
| Interest Coverage | 33.71 | 33.71 | 1.83 | 98.04 | 21.02 | 4.68 | 1.05 | 23.29 | 4.59 | 6.02 | 1.71 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 22.23 | 22.23 | 8.93 | 14.15 | 2.67 | 11.15 | 5.00 | 66.09 | 10.58 | 0.99 | 0.72 |
| Quick Ratio | 21.98 | 21.98 | 8.55 | 12.72 | 2.53 | 10.50 | 4.74 | 65.66 | 10.50 | 0.97 | 0.71 |
| Cash Ratio | 19.59 | 19.59 | 6.90 | 10.15 | 2.14 | 8.19 | 4.11 | 62.93 | 9.30 | 0.84 | 0.62 |
| Asset Turnover | — | 0.17 | 0.18 | 0.17 | 0.26 | 0.19 | 0.12 | 0.08 | 0.20 | 0.21 | 0.18 |
| Inventory Turnover | 0.72 | 0.72 | 0.78 | 1.46 | 3.97 | 2.28 | 1.15 | 1.56 | 0.89 | 1.23 | 2.90 |
| Days Sales Outstanding | — | 83.12 | 92.70 | 109.27 | 65.17 | 138.49 | 131.81 | 126.69 | 81.07 | 66.21 | 61.02 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 2.1% | 3.2% | — | 4.1% | — | 2.2% | — | 30.5% | 4.4% | 0.4% | — |
| FCF Yield | 0.8% | 1.3% | 3.9% | — | 10.6% | 2.6% | 3.1% | — | 5.6% | 2.7% | 1.6% |
| Buyback Yield | 0.3% | 0.4% | 0.0% | 0.0% | 0.0% | 0.7% | 4.8% | 22.0% | 3.8% | 0.1% | 0.2% |
| Total Shareholder Yield | 0.3% | 0.4% | 0.0% | 0.0% | 0.0% | 0.7% | 4.8% | 22.0% | 3.8% | 0.1% | 0.2% |
| Shares Outstanding | — | $20M | $18M | $18M | $17M | $17M | $16M | $20M | $24M | $23M | $21M |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying LGND stock.
Ligand Pharmaceuticals Incorporated's current P/E ratio is 48.7x. The historical average is 35.2x. This places it at the 80th percentile of its historical range.
Ligand Pharmaceuticals Incorporated's current EV/EBITDA is 77.3x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 37.0x.
Ligand Pharmaceuticals Incorporated's return on equity (ROE) is 13.5%. The historical average is -33.4%.
Based on historical data, Ligand Pharmaceuticals Incorporated is trading at a P/E of 48.7x. This is at the 80th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Ligand Pharmaceuticals Incorporated has 97.5% gross margin and 17.6% operating margin. Operating margin between 10-20% is typical for established companies.
Ligand Pharmaceuticals Incorporated's Debt/EBITDA ratio is 5.6x, indicating high leverage. A ratio above 4x may signal elevated financial risk.
Key Metrics
Top Statement Risk
Concentration in key royalty assets
Metrics are mathematically derived from official filings.
Gross Margin Strength, Operating Drag
Gross margin remains structurally high at 95.0% in 2026Q2, but operating margin of 13.5% trails peers like Innoviva (38.5%), implying elevated SG&A and R&D costs relative to the royalty model.
The 97.5% gross margin underscores the capital-light royalty model, yet the operating margin compression to 13.5% in 2026Q2 from 33.6% in 2026Q1 suggests overhead is not scaling with revenue. Net margin of 76.2% is inflated by non-operating gains, masking the true earning power of the core royalty stream. Investors should monitor whether expense growth, particularly SG&A and R&D, continues to outpace royalty-driven revenue expansion.
ROIC Volatility Masks Underlying Value
ROIC swung from -3.6% in 2025Q1 to 4.1% in 2025Q3, but 2026Q2 ROIC of 0.5% reflects the drag from a $1.1B debt-funded acquisition, per recent financial statements.
The sharp quarterly swings in ROIC, from -3.6% to 4.1%, highlight the lumpy nature of milestone and royalty income, making single-quarter figures misleading. The 2026Q2 ROIC of 0.5% is depressed by the increased invested capital base from the APEIRON acquisition, which has yet to generate meaningful returns. Over a longer horizon, the company's ability to deploy cash into high-yielding royalty streams will determine whether returns on capital compound or decay.
Working Capital Swings Reflect Milestone Timing
Cash conversion cycle swung from -23 days in 2024Q2 to 402 days in 2026Q1, driven by volatile DSO and DIO, indicating working capital efficiency is heavily influenced by milestone timing.
The extreme volatility in CCC, from -23 to 402 days, suggests that traditional working capital metrics are not meaningful for a royalty aggregator with lumpy receivables. DSO of 89 days in 2026Q2 and DIO of 333 days reflect the timing of large milestone payments and Captisol inventory orders, not operational inefficiency. Asset turnover of 0.03x is structurally low due to the intangible-heavy balance sheet, making it an unreliable efficiency gauge for this business model.
Debt-Funded Acquisition Reshapes Leverage
D/E jumped from 0.01 in 2025Q2 to 1.17 in 2026Q2, with D/EBITDA at 67.8x, reflecting the $1.1B debt-funded APEIRON acquisition, per the latest balance sheet.
The leverage spike from near-zero to 1.17 D/E is a strategic shift, but the D/EBITDA of 67.8x appears extreme, though EBITDA is depressed by amortization and one-time items. Interest coverage of 36.8x in 2026Q2 suggests debt service is currently comfortable, but the sustainability depends on the acquired royalty streams generating expected cash flows. Investors should monitor whether the acquisition yield justifies the leverage, especially if Kyprolis or Veklury royalties decline.
Liquidity Buffer Bolstered by Cash and Debt
Current ratio hit 31.18 in 2026Q2, with cash surging to $1.0B from $67.7M a year earlier, indicating ample short-term liquidity, per the balance sheet.
The current ratio of 31.18 and quick ratio of 30.96 provide a substantial liquidity cushion, largely due to the $1.0B cash balance from the debt issuance. This buffer could support further acquisitions or withstand a downturn in royalty income, but it also suggests the company is holding significant dry powder. The lack of a dividend and minimal capex indicate a preference for M&A over direct shareholder returns, which may or may not create value.
Misapplied P/E on a Royalty Model
The P/E of 48.06 is misleading for LGND because GAAP earnings are distorted by amortization and non-operating gains; EV/EBITDA or cash-flow multiples are more relevant, per financial statements.
Standard P/E ratios are commonly misapplied to LGND because the amortization of acquired intangibles and one-time gains create significant earnings volatility. For instance, net margin swung from -125% to 101.6% over the past ten quarters, making trailing P/E unreliable. Instead, investors should use EV/EBITDA or price-to-cash-flow metrics, which better capture the underlying royalty stream's economics, though even these require adjustments for milestone lumpiness.