LLY is now overvalued and could go down -42%

Based on our analysis, Lilly (Eli) & Company has received an overvalued rating of 1 out of 5 stars from Cashu. Several financial metrics indicate that the company may not be a sound investment at its current valuation. The Price-to-Earnings (PE) Ratio for Lilly stands at 65.15, significantly higher than the sector average of 14.18. A high PE ratio suggests that investors are paying a premium for each dollar of earnings, which may not be justified given the current market conditions. Additionally, the Price-to-Book (PB) Ratio for Lilly is 51.64, compared to the sector average of 2.71. This ratio reflects how much investors are willing to pay for a company's equity relative to its book value. A substantially higher PB ratio could indicate that the stock is overvalued in relation to its actual assets. The Dividend Yield for Lilly is 0.67, which falls short of the sector average of 1.18. This lower yield may deter income-focused investors looking for strong returns from dividends. In summary, while Lilly has strong performance metrics in areas such as profitability and return ratios, its elevated PE and PB ratios, along with a lower dividend yield, suggest it may be overvalued compared to its peers. This is not a comprehensive overview of our valuation, and should not be viewed as financial advice. Always do your own research before considering an investment.