Eli Lilly and Company (LLY) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-47.2%

$744.72

vs $1,409.90 price

Levered DCF

$706.75

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

9.47

Safe zone

Rating

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	46.58×	65.65×	99.99×	55.68×	47.22×	26.1×	15.12×	36.85×
P/B	36.37×	48.99×	48.67×	32.64×	29.34×	28.63×	48.27×	12.1×
P/S	14.81×	15.44×	15.36×	12.18×	9.3×	6.58×	5.64×	5.53×
EV / EBITDA	31.57×	38.58×	63.81×	41.77×	34.38×	19.57×	20.19×	22.04×
Gross margin	83.0%	81.3%	79.2%	76.8%	74.2%	77.7%	78.8%	78.2%
Operating margin	45.6%	37.8%	31.6%	30.3%	28.0%	29.4%	26.9%	28.0%
Net margin	31.7%	23.5%	15.4%	21.9%	19.7%	25.2%	37.3%	15.0%
Current ratio	1.58×	1.15×	0.94×	1.05×	1.23×	1.4×	1.16×	1.73×
Debt / equity	1.6×	2.37×	2.34×	1.52×	1.88×	2.94×	6.06×	1.05×
Interest coverage	37.34×	21.83×	22.2×	26.1×	23.35×	20.05×	14.98×	24.85×
Dividend yield	0.6%	0.7%	0.8%	1.0%	1.2%	1.7%	1.9%	1.9%
Payout ratio	26.1%	44.2%	77.7%	56.6%	55.3%	43.4%	29.0%	71.5%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	77.8%	74.6%	48.6%	58.6%	62.2%	109.8%	319.1%	32.9%
Return on invested capital	30.2%	25.7%	19.8%	23.5%	20.4%	18.1%	18.2%	15.6%
Return on assets	18.4%	13.5%	8.2%	12.6%	11.4%	13.3%	21.2%	7.4%
Free cash flow yield	0.9%	0.5%	-0.6%	1.3%	2.0%	2.8%	2.8%	2.1%
Earnings yield	2.1%	1.5%	1.0%	1.8%	2.1%	3.8%	6.6%	2.7%
Enterprise value	$1T	$725.6B	$546.7B	$361.8B	$276.5B	$174.4B	$139.3B	$121.9B
Net debt / EBITDA	1.12×	1.62×	2.62×	1.64×	1.62×	1.45×	1.95×	0.54×
Cash conversion cycle (days)	389	297	285	240	215	261	229	246