LLY

Fairly Valued

Eli Lilly and Company — PEG Ratio Analysis

1.45

PEG Ratio

1.45

Growth Rate Source

Good Data Quality5-Year EPS CAGR

Current Price

$1122.50

TTM EPS

$28.15

P/E Ratio

39.88

Growth Rate

27.5%

5-Year EPS CAGR

Sector

Healthcare

Drug Manufacturers - General

Calculated

6/17/2026

12:17:28 PM

Peer Comparison

Sample Size

5 peers

Industry Median PEG

3.01

25th Percentile

1.53

75th Percentile

8.25

LLY PEG (1.45) vs Industry Median (3.01): 52% discount

Symbol	Company	PEG	P/E	Growth	vs LLY
GILD	Gilead Sciences, Inc.	0.12	17.3	149.5%	-92%
MRK	Merck & Co., Inc.	1.53	32.4	21.2%	+6%
BMY	Bristol-Myers Squibb Company	3.01	15.7	5.2%	+108%
AMGN	Amgen Inc.	8.25	24.2	2.9%	+469%
PFE	Pfizer Inc.	12.91	19.9	1.5%	+791%

How to Interpret PEG Ratio

PEG < 1.0 — Potentially Undervalued. The stock may be priced below its earnings growth rate, suggesting a potential buying opportunity.

PEG 1.0–2.0 — Fairly Valued. The stock price is roughly in line with its earnings growth. A PEG of 1.0 is often considered "fair value."

PEG > 2.0 — Potentially Overvalued. The stock may be priced above what its earnings growth justifies.

Limitations:PEG ratios are less reliable for financial firms (earnings driven by interest margins), companies with negative/zero earnings growth, and hypergrowth companies (>100% growth) where the ratio may appear misleadingly low. Always use PEG alongside other valuation metrics.