LLY is now overvalued and could go down -42%

Based on our analysis, Eli Lilly and Company has received an overvalued rating of 1 out of 5 stars from Cashu, primarily due to several key financial ratios that highlight its potential drawbacks compared to industry standards. One of the most notable concerns is the company's Price-to-Earnings (PE) Ratio, which stands at 65.70. This figure is significantly higher than the sector average of 14.18, indicating that investors are paying much more for each dollar of earnings compared to similar companies. Such a high PE ratio can suggest that the stock is overvalued and may not offer a reasonable return on investment. Moreover, the Price-to-Book (PB) Ratio for Eli Lilly is 51.64, far exceeding the sector average of 2.71. This ratio suggests that the market values the company much higher than its book value, which may raise concerns about sustainability. Additionally, the Dividend Yield of Eli Lilly is 0.67, lower than the sector average of 1.18. A lower dividend yield means that investors receive less income from dividends relative to their investment, which may deter income-focused investors. Although Eli Lilly demonstrates strong performance in other areas, such as a robust Net Profit Margin of 23.51 and an impressive Return on Equity (ROE) of 74.62, these strengths are overshadowed by its elevated valuation ratios relative to the sector. 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.