Latest Ratios: P/E Ratio 118.8x · EV/EBITDA 229.4x · 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 | $6.1B | $3.8B | $2.0B | $1.3B | $1.1B | $2.7B | $1.6B | $2.1B | $3.3B | $3.2B | $2.1B |
| Enterprise Value | $6.4B | $4.1B | $1.9B | $1.3B | $1.2B | $3.0B | $2.0B | $2.6B | $3.2B | $3.2B | $2.2B |
| P/E Ratio → | 118.77 | 30.84 | — | 24.29 | — | 46.25 | — | 3.27 | 22.77 | 258.36 | — |
| P/S Ratio | 24.18 | 14.31 | 11.73 | 9.66 | 5.74 | 11.03 | 9.84 | 17.13 | 12.99 | 22.79 | 19.42 |
| P/B Ratio | 6.11 | 3.77 | 2.36 | 1.81 | 1.89 | 3.24 | 2.27 | 2.69 | 5.82 | 7.68 | 5.71 |
| P/FCF | 67.76 | 78.45 | 25.32 | — | 9.40 | 38.03 | 32.11 | — | 17.93 | 37.21 | 61.04 |
| P/OCF | 124.33 | 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 | 229.37 | 50.80 | 149.97 | 25.82 | 25.19 | 19.18 | 30.83 | 3.10 | 17.84 | 40.58 | 39.67 |
| EV / EBIT | 135.87 | 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 | 3.57 | 2.81 | 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 | -0.46 | 0.29 | 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 | 0.8% | 3.2% | — | 4.1% | — | 2.2% | — | 30.5% | 4.4% | 0.4% | — |
| FCF Yield | 1.5% | 1.3% | 3.9% | — | 10.6% | 2.6% | 3.1% | — | 5.6% | 2.7% | 1.6% |
| Buyback Yield | 0.2% | 0.4% | 0.0% | 0.0% | 0.0% | 0.7% | 4.8% | 22.0% | 3.8% | 0.1% | 0.2% |
| Total Shareholder Yield | 0.2% | 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 118.8x. The historical average is 35.2x. This places it at the 100th percentile of its historical range.
Ligand Pharmaceuticals Incorporated's current EV/EBITDA is 229.4x. 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 118.8x. This is at the 100th 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
Acquisition-driven leverage and earnings volatility
Metrics are mathematically derived from official filings.
Premium Multiples Price in Sustained Royalty Growth
Based on reported figures, LGND trades at 48.78 times trailing earnings and 22.35 times sales, a premium that implies investors are paying for durable royalty compounding rather than current reported profitability.
The gap between trailing P/E of 48.78 and forward P/E of 31.82 suggests consensus expects earnings to roughly double-digit grow into the multiple, though this relies on continued royalty inflows from a concentrated asset base. The EV/EBITDA of 77.42 versus a forward figure of 22.60 indicates trailing EBITDA is depressed by the Q3 2026 operating loss, so the trailing multiple overstates the market's true price for the platform. Investors should monitor whether forward estimates hold, since a multiple this elevated leaves little margin for a miss.
High Gross Margin Undermined by Operating Volatility
As reported in financial statements, LGND's gross margin of roughly 96% contrasts with operating margin swinging from 33.6% in Q1 2026 to -20.0% in Q3 2026, indicating that overhead rather than royalty economics drives the earnings instability.
Royalty-based gross economics are structurally strong, yet the variability in operating margin points to substantial and irregular operating expenses, including stock-based compensation that consumed a meaningful share of quarterly operating income. The net margin of 76.2% in Q2 2026 far exceeding the 13.5% operating margin suggests non-operating items inflate reported net income, so operating margin is the more reliable gauge of earning power. Sustained operating losses would challenge the thesis that the platform carries durable profitability.
Acquisition Debt Reshapes Capital Structure Rapidly
According to reported quarterly figures, LGND's debt-to-equity ratio climbed from 0.01 in mid-2025 to 1.20 in Q3 2026, a shift that makes leverage a central feature of the balance sheet rather than a marginal one.
Total debt rising from roughly $5.7M to $1.2B within about a year points to acquisition financing that has materially changed the company's risk profile. Interest coverage has turned unreliable, with the ratio flipping negative in several quarters and no figure available for the latest period, so debt service capacity cannot be confidently assessed from the supplied data. This warrants further investigation into maturity schedules and refinancing terms, as the data provided does not disclose them.
Cash Buffer Thins as Obligations Mount
As reported in financial statements, LGND's cash fell to $56.0M in Q3 2026 from $1.0B the prior quarter, leaving a current ratio of 1.22 that offers a narrower cushion against near-term obligations.
The sharp drawdown in cash alongside a current ratio that has fallen from above 20 in early 2026 to 1.22 suggests the company's liquidity was largely deployed into acquisitions. A current ratio above 1.0 indicates current assets still cover current liabilities, but the quick ratio of 1.19 shows little inventory dependence, meaning the remaining cushion is almost entirely cash and receivables. Under stress, the company would depend on royalty collections, which appear lumpy quarter to quarter.
Headline Equity Masks Recent Operating Deterioration
Based on the supplied data, LGND's retained earnings of $554.8M and healthy-looking equity base may overstate financial strength given a Q3 2026 operating loss of $15.8M following a profitable Q2.
The most commonly misapplied metric here is return on equity, which benefited from a Q2 2026 ROE of 4.9% and a Q3 ROE of -3.0% that reflect a rapidly changing equity base after acquisition funding. Price-to-earnings is also frequently misused because amortization of acquired intangibles and non-operating gains distort GAAP net income, making EV-based multiples or cash flow measures more informative. Investors should instead weigh operating margin trend and free cash flow over several quarters rather than any single period's headline profit.