Eli Lilly and Company (LLY)

DCF Valuation · Healthcare · Drug Manufacturers - General

Valuation as at 2026-08-14 · see also the S&P 500 Most Undervalued screen

About Eli Lilly and Company

Eli Lilly and Company discovers, develops, manufactures, and markets human pharmaceutical products in the United States, Europe, China, Japan, and internationally. The company offers cardiometabolic health products, including Basaglar, Humalog, Humalog Mix 75/25, Humalog U-100, Humalog U-200, Humalog Mix 50/50, insulin lispro, insulin lispro protamine, insulin lispro mix 75/25, Humulin, Humulin 70/30, Humulin N, Humulin R, Humulin U-500 for diabetes; Jardiance, Mounjaro, and Trulicity for type 2 diabetes; and Zepbound for obesity. It also provides oncology products, such as Cyramza for the second-line treatment of gastric cancer or gastro-esophageal junction adenocarcinoma; Erbitux for colorectal cancers and head and neck cancers; Inluriyo for breast cancer; Jaypirca for chronic lymphocytic leukemia or small lymphocytic lymphoma; Retevmo for the treatment of metastatic NSCLC; TYVYT for classic hodgkin's lymphoma; and Verzenio for breast cancer.

Source: Yahoo Finance company profile · factual description, not KashVector commentary

Eli Lilly and Company LLY

Healthcare · Drug Manufacturers - General

Price
$1,209.00
Market Cap
$1078.12B
Free Cash Flow
$11.07B
Beta
0.51
P/E (TTM)
41.0x
52-Week Range
$685.15–$1,249.45

Eli Lilly and Company's price & financial trends

Each card is labelled with its own reporting period — quarterly where Yahoo provides it for this market, annual otherwise.

Data as at 2026-08-14

Share price · last 2 years

$1,209.00 +26% vs 2024-08
S&P 500 $960.02$811.08$779.53$1,075.47$934.60$1,209.00 2024-082025-012025-062025-112026-042026-08

Earnings per share (diluted) Per quarter

$7.94 +26% vs Q2 '25
$6.29$6.21$7.39$8.26$7.94Q2 '25Q3 '25Q4 '25Q1 '26Q2 '26

Free cash flow Per quarter

$4.47B +249% vs Q2 '25
$1.28B$6.03B$0.25B$2.80B$4.47BQ2 '25Q3 '25Q4 '25Q1 '26Q2 '26

Dividend per share Per quarter

$1.73 +16% vs Q2 '25
$1.50$1.50$1.50$1.73$1.73Q2 '25Q3 '25Q4 '25Q1 '26Q2 '26

Value investing scale · Buffett · Dalio · Graham

Partial Fit
11 / 20 combined score

See the full Buffett, Dalio & Graham breakdown for LLY →

Intrinsic value estimate · 5-year forecast

BEAR
$280.99
vs current $1,209.00
-76.8% ❌ Overvalued
BASE
$612.24
vs current $1,209.00
-49.4% ❌ Overvalued
BULL
$974.01
vs current $1,209.00
-19.4% ⚠️ Fairly Valued

Assumptions used in this valuation

Every input below is either fetched live from Yahoo Finance or a documented default — nothing is hidden.

Starting free cash flow
$11.07B
Reported free cash flow (Yahoo)
Risk-free rate
4.68% ● LIVE
Live 10-yr govt bond
Beta
0.51
Direct from Yahoo
Equity risk premium
5.50%
Market-specific seed
Cost of debt
5.28%
Synthetic rating AAA, ICR 38.0x
Tax rate
25.00%
Estimated default
Capital structure
E 95% / D 5%
Market cap vs total debt
Projection horizon
5 years
+ terminal value beyond
BearBaseBull
5-yr FCF growth12.5%25.0%30.0%
Terminal growth2.5%2.5%2.5%
WACC (discount rate)8.30%7.30%6.30%

Cost of Equity = Risk-free rate + Beta × Equity Risk Premium = 4.68% + 0.51 × 5.50% = 7.46% · WACC = weighted by 95%/5% capital structure

These numbers come from running Eli Lilly and Company's cash flows through the mechanical DCF formula and assumptions above — not from any view on the news, management, or LLY's competitive position. What is DCF?

Want to test your own growth or discount-rate assumptions?Open the full interactive calculator, pre-filled with LLY →

More S&P 500 stocks we've valued

Not financial advice. DCF valuations are highly sensitive to assumptions — small changes in growth rate or discount rate produce large swings in output. This is a mechanical calculation, not a recommendation to buy, hold, or sell.

About this valuation

Computed on 2026-08-14 from Yahoo Finance data, using the same engine as the full DCF tool and the S&P 500 Most Undervalued screen. Every figure above is a point-in-time snapshot of that date — change any assumption yourself in the interactive tool for a live one.

Frequently asked questions

Is Eli Lilly and Company (LLY) undervalued?

The Base-case DCF estimates intrinsic value at $612.24 vs a price of $1,209.00 on 2026-08-14 — a -49.4% margin, so the Base case reads overvalued. This is a mechanical output, not advice.