Healthcare🔴 Potentially Overvalued

Eli Lilly and CompanyLLY

$818.00▲ 29.2% (52w)

Pipeline data updated: March 8, 2026. Prices may not reflect real-time market values.

📐 Graham Intrinsic Value

Current Price

$818.00

Intrinsic Value

$92.00

Overvalued By

88.8%

⚠️ Potentially overvalued — trading $726.00 above intrinsic value

How is this calculated? ▾

The Graham Number is √(22.5 × EPS × Book Value per Share). It was developed by Benjamin Graham — the father of value investing and Warren Buffett's mentor. A stock trading below its Graham Number has a "margin of safety," meaning you're buying a dollar's worth of value for less than a dollar. The 33% rule of thumb: Graham preferred buying at 2/3 of intrinsic value (a 33% margin of safety).

🏷️ Plain-English Value Verdict

🔴Potentially Overvalued

Trading 89% above Graham intrinsic value of $92.00. The market is pricing in significant growth or a premium for quality. Be cautious.

⚠️ This is a mathematical estimate, not financial advice. Always do your own research.

📊 Key Metrics

P/E Ratio

68.4x

What does this mean? ▾

Price-to-Earnings: how much investors pay per dollar of earnings. Lower generally = cheaper. S&P 500 average is ~22x. Below 15x is often considered undervalued; above 30x requires strong growth to justify.

P/B Ratio

N/A

What does this mean? ▾

Price-to-Book: compares stock price to net asset value. Below 1.0 means you're buying assets for less than their accounting value — a classic Graham signal. Above 3–4x suggests the market expects significant intangible value.

Dividend Yield

0.62%

What does this mean? ▾

Annual dividend payments as a % of stock price. A 4% yield means $4 in annual income per $100 invested. Compare to the 10-yr Treasury yield (~4.5%) as the benchmark for 'worth it' income.

Graham Number

$92.00

What does this mean? ▾

Benjamin Graham's formula: √(22.5 × EPS × Book Value). It estimates fair value. If the current price is below this number, the stock has a 'margin of safety' — one of the cornerstones of value investing.

Margin of Safety

-88.8%

What does this mean? ▾

How far below intrinsic value the stock is trading. +30% means the stock is 30% cheaper than its calculated fair value — a large cushion against being wrong. Negative = trading above intrinsic value.

Market Cap

$736.0B

What does this mean? ▾

Total market value of all shares. Large-cap ($10B+) = stability. Mid-cap ($2–10B) = growth potential. Small-cap (<$2B) = higher risk/reward. Bigger doesn't always mean better.

📋 Detailed Fundamentals

Debt / EquityFinancial leverage. Higher D/E = more debt risk	88.0x
Sector	Healthcare

❓ Frequently Asked Questions

What is LLY's intrinsic value?▾

Based on the Graham Number formula (√(22.5 × EPS × Book Value)), LLY's intrinsic value is estimated at $92.00. The current price of $818.00 is above this estimate, suggesting the stock is potentially overvalued by this measure. Note: intrinsic value is an estimate, not a guarantee.

Is LLY overvalued right now?▾

Potentially Overvalued: Trading 89% above Graham intrinsic value of $92.00. The market is pricing in significant growth or a premium for quality. Be cautious. As of our last pipeline update (March 8, 2026), LLY traded at $818.00. Our Graham Number estimate is $92.00. Markets change daily — always check current prices before making investment decisions.

What is LLY's P/E ratio?▾

LLY's trailing P/E ratio is 68.4x. The S&P 500 historically trades around 15–25x earnings. A high P/E above 30x means the market expects strong future growth to justify today's price.

Does LLY pay a dividend?▾

Yes — LLY currently yields 0.62% annually.

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