Latest Ratios: P/E Ratio 43.9x · EV/EBITDA 31.2x · ROE 101.2%. (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 | $1.28T | $965.1B | $697.9B | $526.5B | $347.6B | $263.4B | $161.5B | $125.8B | $119.6B | $88.9B | $81.0B |
| Enterprise Value | $1.31T | $1.00T | $728.3B | $548.9B | $361.8B | $276.5B | $174.4B | $139.3B | $122.6B | $96.0B | $86.7B |
| P/E Ratio → | 43.86 | 46.83 | 65.93 | 100.50 | 55.68 | 47.22 | 26.10 | 15.12 | 36.97 | — | 29.54 |
| P/S Ratio | 14.75 | 14.81 | 15.49 | 15.43 | 12.18 | 9.30 | 6.58 | 5.64 | 5.57 | 4.45 | 3.82 |
| P/B Ratio | 45.82 | 36.37 | 48.90 | 48.47 | 32.26 | 28.77 | 27.73 | 46.63 | 10.96 | 7.62 | 5.75 |
| P/FCF | 64.86 | 107.56 | 185.62 | — | 75.56 | 48.89 | 36.13 | 36.13 | 47.73 | 25.74 | 21.54 |
| P/OCF | 75.84 | 57.40 | 79.15 | 124.18 | 45.82 | 35.76 | 24.85 | 26.02 | 21.65 | 15.82 | 16.69 |
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 | — | 15.35 | 16.17 | 16.09 | 12.68 | 9.76 | 7.11 | 6.24 | 5.70 | 4.80 | 4.09 |
| EV / EBITDA | 31.20 | 31.57 | 38.73 | 44.58 | 35.55 | 29.16 | 20.44 | 19.26 | 16.06 | 16.50 | 16.15 |
| EV / EBIT | 44.13 | 33.69 | 42.74 | 77.97 | 50.68 | 42.57 | 22.99 | 24.59 | 31.25 | 37.93 | 24.36 |
| EV / FCF | — | 111.50 | 193.69 | — | 78.64 | 51.32 | 39.02 | 40.00 | 48.91 | 27.80 | 23.06 |
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 | 83.0% | 83.0% | 81.3% | 79.2% | 76.8% | 74.2% | 77.7% | 78.8% | 78.2% | 77.7% | 73.1% |
| Operating Margin | 45.6% | 45.6% | 37.8% | 31.6% | 30.3% | 28.0% | 29.4% | 26.9% | 28.0% | 21.3% | 18.2% |
| Net Profit Margin | 31.7% | 31.7% | 23.5% | 15.4% | 21.9% | 19.7% | 25.2% | 37.3% | 15.0% | -1.0% | 12.9% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 101.2% | 101.2% | 84.3% | 48.4% | 62.7% | 74.5% | 145.3% | 122.3% | 28.6% | -1.6% | 19.1% |
| ROA | 21.6% | 21.6% | 14.8% | 9.2% | 12.7% | 11.7% | 14.4% | 20.0% | 7.3% | -0.5% | 7.4% |
| ROIC | 41.8% | 41.8% | 32.8% | 27.8% | 27.5% | 29.0% | 31.0% | 29.9% | 27.7% | 16.5% | 15.0% |
| ROCE | 46.6% | 46.6% | 39.1% | 31.2% | 26.2% | 23.4% | 23.4% | 20.2% | 19.3% | 14.6% | 14.0% |
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 | 1.60 | 1.60 | 2.36 | 2.32 | 1.51 | 1.84 | 2.85 | 5.86 | 0.94 | 1.17 | 0.73 |
| Debt / EBITDA | 1.34 | 1.34 | 1.79 | 2.05 | 1.60 | 1.78 | 1.94 | 2.19 | 1.35 | 2.35 | 1.92 |
| Net Debt / Equity | — | 1.33 | 2.13 | 2.06 | 1.32 | 1.43 | 2.22 | 4.99 | 0.27 | 0.61 | 0.41 |
| Net Debt / EBITDA | 1.12 | 1.12 | 1.62 | 1.82 | 1.39 | 1.38 | 1.52 | 1.86 | 0.39 | 1.22 | 1.07 |
| Debt / FCF | — | 3.94 | 8.08 | — | 3.08 | 2.43 | 2.89 | 3.87 | 1.19 | 2.06 | 1.52 |
| Interest Coverage | 37.34 | 37.34 | 21.83 | 14.49 | 21.53 | 19.12 | 21.11 | 14.15 | 16.18 | 11.24 | 19.22 |
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 | 1.58 | 1.58 | 1.15 | 0.94 | 1.05 | 1.23 | 1.40 | 1.16 | 1.73 | 1.32 | 1.37 |
| Quick Ratio | 1.19 | 1.19 | 0.89 | 0.73 | 0.80 | 0.97 | 1.08 | 0.89 | 1.47 | 1.01 | 1.05 |
| Cash Ratio | 0.21 | 0.21 | 0.12 | 0.11 | 0.13 | 0.26 | 0.29 | 0.21 | 0.62 | 0.55 | 0.55 |
| Asset Turnover | — | 0.58 | 0.57 | 0.53 | 0.58 | 0.58 | 0.53 | 0.57 | 0.49 | 0.44 | 0.55 |
| Inventory Turnover | 0.80 | 0.80 | 1.11 | 1.23 | 1.54 | 1.88 | 1.38 | 1.48 | 1.51 | 1.00 | 1.60 |
| Days Sales Outstanding | — | 112.87 | 107.58 | 121.25 | 109.45 | 104.75 | 103.06 | 90.62 | 98.10 | 96.16 | 81.98 |
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 | 0.4% | 0.6% | 0.7% | 0.8% | 1.0% | 1.2% | 1.7% | 1.9% | 1.9% | 2.5% | 2.7% |
| Payout Ratio | 26.1% | 26.1% | 44.2% | 77.7% | 56.6% | 55.3% | 43.4% | 29.0% | 71.5% | — | 78.8% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 2.3% | 2.1% | 1.5% | 1.0% | 1.8% | 2.1% | 3.8% | 6.6% | 2.7% | — | 3.4% |
| FCF Yield | 1.5% | 0.9% | 0.5% | — | 1.3% | 2.0% | 2.8% | 2.8% | 2.1% | 3.9% | 4.6% |
| Buyback Yield | 0.3% | 0.4% | 0.4% | 0.1% | 0.4% | 0.5% | 0.3% | 3.5% | 3.5% | 0.3% | 0.7% |
| Total Shareholder Yield | 0.8% | 1.0% | 1.0% | 0.9% | 1.4% | 1.6% | 2.0% | 5.4% | 5.4% | 2.8% | 3.4% |
| Shares Outstanding | — | $898M | $904M | $903M | $950M | $954M | $957M | $958M | $1.0B | $1.1B | $1.1B |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying LLY stock.
Eli Lilly and Company's current P/E ratio is 43.9x. The historical average is 32.4x. This places it at the 78th percentile of its historical range.
Eli Lilly and Company's current EV/EBITDA is 31.2x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 19.1x.
Eli Lilly and Company's return on equity (ROE) is 101.2%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 41.8%.
Based on historical data, Eli Lilly and Company is trading at a P/E of 43.9x. This is at the 78th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Eli Lilly and Company's current dividend yield is 0.44% with a payout ratio of 26.1%.
Eli Lilly and Company has 83.0% gross margin and 45.6% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Eli Lilly and Company's Debt/EBITDA ratio is 1.3x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Incretin concentration and margin compression
Metrics are mathematically derived from official filings.
Premium Multiples Price in Sustained Obesity Growth
Based on reported figures, LLY trades at 59.6x trailing earnings and 42.3x EV/EBITDA, roughly three to four times the 14-21x P/E range of most large-cap pharma peers, implying the market is capitalizing a durable obesity growth runway rather than current earnings.
The forward P/E of 39.7x and PEG of 2.07 suggest investors are still paying for growth well above what the trailing earnings base supports, which compresses the margin of safety if revenue growth decelerates. Relative to Novo Nordisk at 11.7x P/E, the premium reflects a perceived structural lead in dual-agonist efficacy rather than a conventional value profile. The valuation therefore appears highly sensitive to continued tirzepatide volume gains and pricing stability, and investors should monitor whether forward estimates keep pace with the multiple.
Margin Peak Giving Way to Normalization
As reported in quarterly income statements, LLY's operating margin fell from a 47.6% peak in 2025Q3 to 35.3% in 2026Q3 even as gross margin held near 84%, pointing to rising operating costs rather than pricing erosion at the product level.
Stable gross margins alongside a roughly twelve-point operating margin decline indicate that SG&A and R&D intensity, not cost of goods, is absorbing incremental revenue. This is consistent with heavy launch spending on global obesity indications, though the data alone cannot confirm the split between temporary and structural drivers. Net margin of 26.4% remains well above most peers, but the trajectory warrants monitoring as the operating base resets.
Exceptional ROE Driven by Thin Equity Base
According to reported figures, LLY's ROE of 17.4% in 2026Q3 is far below the 101% headline figure, while ROIC of 7.8% sits below its 11.3% peak in 2025Q3, suggesting capital efficiency has softened as invested capital expanded.
The elevated ROE in earlier quarters reflected a small equity base relative to earnings, which is now being rebuilt, so the trend is more informative than any single reading. ROIC compression from roughly 11% to under 8% coincides with rapid growth in PP&E and goodwill, implying newly deployed capital is earning returns below the historical average. Peer ROIC of 18-36% for Merck, Novo and Bristol suggests LLY's current return on capital lags the group despite superior margins.
Debt Scaling Faster Than Earnings Coverage
Based on LLY's reported figures, total debt rose to $49.5B while the debt-to-equity ratio eased from 2.43 to 1.23 and interest coverage stands at 23.2x, indicating coverage remains comfortable even as absolute borrowing has expanded substantially.
Falling leverage ratios are largely a function of equity rebuilding rather than debt reduction, so the absolute debt load warrants attention. Interest coverage of 23x suggests near-term debt service is not a concern under current earnings. Debt-to-EBITDA of 5.4x, however, is elevated, and refinancing exposure should be considered if operating income continues to moderate from its peak.
Thin Cash Buffer Against Current Obligations
As reported in financial statements, LLY's cash fell to $4.9B in 2026Q3 from $8.9B the prior quarter, while the current ratio of 1.39 and quick ratio of 1.00 indicate current assets still cover short-term liabilities, though with limited headroom.
A quick ratio of exactly 1.00 means liquidity depends on receivables and short-term investments converting to cash without impairment, and the 92-day DSO leaves that conversion exposed to payer delays. Under a severe stress scenario involving a rebate shock or formulary loss, the cash cushion would likely be tested before the current ratio does. Investors should monitor whether the cash decline reflects deliberate deployment into acquisitions and buybacks or a working capital build.
Misapplied Gross-Margin Lens Obscures Net Economics
Based on LLY's reported figures, the 83.9% gross margin is frequently cited as evidence of pricing power, but it excludes the gross-to-net rebate drag and heavy SG&A, so it overstates earnings durability relative to net margin of 26.4%.
For a pharmaceutical business model, gross margin is computed on net revenue after rebates, yet the gap between list and realized price is largely hidden in confidential accruals, making the headline figure a weak proxy for pricing strength. Investors would be better served by tracking operating margin trend, free cash flow margin, and the gross-to-net accrual trajectory, which together better reflect true earning power. Relying on gross margin alone may therefore lead to overconfidence in margin resilience if payer pressure intensifies.