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Ligand PharmaceuticalsFRA:LGDN -2.31%78 Cyclically Adjusted PB Ratio is 6.53 as of Jul. 22, 2026, which is 54% above its 10-year median of 4.25. GuruFocus rates FRA:LGDN with a GF Score™ of 78/100 and a GF Value™ of €148.32 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 698 Biotechnology companies, Ligand Pharmaceuticals ranks worse than 82.66% on this metric.
The historical rank and industry rank for Ligand Pharmaceuticals's Cyclically Adjusted PB Ratio or its related term are showing as below:
FRA:LGDN'
s Cyclically Adjusted PB Ratio Range Over the Past 10 Years
Min: 1.46 Med: 4.25 Max: 39.49
Current: 6.68
During the past years, Ligand Pharmaceuticals's highest Cyclically Adjusted PB Ratio was 39.49. The lowest was 1.46. And the median was 4.25.
FRA:LGDN's Cyclically Adjusted PB Ratio is ranked worse than 82.66% of 698
companies
in the Biotechnology industry
Industry Median: 1.595
vs FRA:LGDN: 6.68
The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PB Ratio. The Cyclically Adjusted Book per Share is the average of the inflation adjusted book value per share of a company over the past 10 years.
Ligand Pharmaceuticals's adjusted book value per share data for the three months ended in Mar. 2026 was €43.072. Add all the adjusted book value per share for the past 10 years together and divide the count will get our Cyclically Adjusted Book per Share, which is €38.90 for the trailing ten years ended in Mar. 2026.
Shiller PE for Stocks: The True Measure of Stock Valuation
Ligand Pharmaceuticals (FRA:LGDN) Cyclically Adjusted PB Ratio Explanation
Compared with the regular PB Ratio, which works poorly for cyclical businesses, the Cyclically Adjusted PB Ratio smoothed out the fluctuations of book value during business cycles. Therefore it is more accurate in reflecting the valuation of the company.
If a company has consistent business performance, the Cyclically Adjusted PB Ratio should give similar results to regular PB Ratio.
Ligand Pharmaceuticals Cyclically Adjusted PB Ratio Related Terms
Ligand Pharmaceuticals Cyclically Adjusted PB Ratio Historical Data
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The historical data trend for Ligand Pharmaceuticals's Cyclically Adjusted PB Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Ligand Pharmaceuticals Cyclically Adjusted PB Ratio Chart
FRA:LGDN vs DFTX, CGON, XENE: Cyclically Adjusted PB Ratio Comparison
For the Biotechnology subindustry, Ligand Pharmaceuticals's Cyclically Adjusted PB Ratio, along with its competitors' market caps and Cyclically Adjusted PB Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Ligand Pharmaceuticals Cyclically Adjusted PB Ratio vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Ligand Pharmaceuticals's Cyclically Adjusted PB Ratio distribution charts can be found below:
* The bar in red indicates where Ligand Pharmaceuticals's Cyclically Adjusted PB Ratio falls into.
Ligand Pharmaceuticals Cyclically Adjusted PB Ratio Calculation
Like the Shiller PE Ratio, the Cyclically Adjusted PB Ratio takes the Book Value per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/B calculation. Because it considers this 10-year average, it's often referred to as the CAPB Ratio.
The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PB Ratio.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.
What does a Cyclically Adjusted PB Ratio of 6.53 mean?
Ligand Pharmaceuticals (FRA:LGDN) has a Cyclically Adjusted PB Ratio of 6.53 as of Jul. 22, 2026. Cyclically Adjusted PB Ratio is the ratio of share price to a company's inflation-adjusted book value per share over a 10-year period. View historical data on Ligand Pharmaceuticals and its competitors. This is 54% above median its historical median of 4.25. Over the past decade, Ligand Pharmaceuticals' Cyclically Adjusted PB Ratio has ranged from 1.46 to 39.49. According to the industry distribution chart, Ligand Pharmaceuticals ranks #577 out of 698 companies in the Biotechnology industry, placing it in the top 82.7%.
Is Ligand Pharmaceuticals' Cyclically Adjusted PB Ratio too high?
Ligand Pharmaceuticals' current Cyclically Adjusted PB Ratio of 6.53 is 54% above median its 10-year median of 4.25. Over the past 10 years, this metric has ranged from a low of 1.46 to a high of 39.49. The Biotechnology industry median Cyclically Adjusted PB Ratio is 1.60. Ligand Pharmaceuticals' value of 6.53 is 309.4% above this industry median. Based on the distribution chart, Ligand Pharmaceuticals ranks #577 out of 698 companies in the Biotechnology industry, which is in the bottom quartile relative to peers. Overall, Ligand Pharmaceuticals has a GF Score™ of 78/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Ligand Pharmaceuticals' Cyclically Adjusted PB Ratio compare to DFTX and CGON?
According to the Biotechnology industry distribution chart, Ligand Pharmaceuticals ranks #577 out of 698 companies for Cyclically Adjusted PB Ratio. This places Ligand Pharmaceuticals in the lower half of its industry. The industry median Cyclically Adjusted PB Ratio is 1.60. Ligand Pharmaceuticals' value of 6.53 is 309.4% above this benchmark. Historically, Ligand Pharmaceuticals' own Cyclically Adjusted PB Ratio has ranged from 1.46 to 39.49 over the past decade. While the company's 10-year median is 4.25 vs. the industry median of 1.60, Ligand Pharmaceuticals has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cyclically Adjusted PB Ratio for a Biotechnology company?
The median Cyclically Adjusted PB Ratio among Biotechnology companies is 1.60, based on 698 companies in the industry. Companies in the top quartile (top 25%) have a Cyclically Adjusted PB Ratio significantly above this median, while those in the bottom quartile fall well below. However, Cyclically Adjusted PB Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Ligand Pharmaceuticals's current Cyclically Adjusted PB Ratio of 6.53 is 309.4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cyclically Adjusted PB Ratio mean?
A high Cyclically Adjusted PB Ratio can signal that a stock is expensive relative to its fundamentals. Cyclically Adjusted PB Ratio is the ratio of share price to a company's inflation-adjusted book value per share over a 10-year period. View historical data on Ligand Pharmaceuticals and its competitors. For the Biotechnology industry, the median Cyclically Adjusted PB Ratio is 1.60 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ligand Pharmaceuticals's current Cyclically Adjusted PB Ratio is 6.53, which is 54% above median its own 10-year median of 4.25. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ligand Pharmaceuticals stock overvalued right now?
Based on GuruFocus' analysis, Ligand Pharmaceuticals (FRA:LGDN) is currently considered Significantly Overvalued. The stock's GF Value™ is €148.32, compared to a current price of €254.00 — trading 71.3% above its estimated fair value. The current Cyclically Adjusted PB Ratio is 6.53, which is 54% above median its 10-year median of 4.25 and 309.4% above the Biotechnology industry median of 1.60. Ligand Pharmaceuticals' overall GF Score™ is 78/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cyclically Adjusted PB Ratio calculated?
Cyclically Adjusted PB Ratio is calculated from a company's financial statements. For Ligand Pharmaceuticals (FRA:LGDN), the current Cyclically Adjusted PB Ratio is 6.53 as of Jul. 22, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Ligand Pharmaceuticals (FRA:LGDN) Overvalued in 2026?
Based on GuruFocus' analysis, Ligand Pharmaceuticals stock appears to be overvalued.
The current stock price of €254.00 is trading 71.3% above its estimated GF Value™ of €148.32.
GuruFocus considers Ligand Pharmaceuticals to be Significantly Overvalued.
Key valuation signals for FRA:LGDN:
Cyclically Adjusted PB Ratio: 6.53 (54% above median its 10-year median of 4.25)
GF Value™: €148.32 vs. price of €254.00 (71.3% above fair value)
Industry Position: 309.4% above the Biotechnology median (#577 of 698)
No single metric tells the full story. See the FRA:LGDN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ligand Pharmaceuticals Inc is a biopharmaceutical company focused on developing and acquiring technologies that aid in creating medicine. The company has partnerships and license agreements with various pharmaceutical and biotechnology companies. Ligand's business model is based on drug discovery, early-stage drug development, product reformulation, and partnerships. The company's revenue consists of three primary elements: royalties from commercialized products, license and milestone payments, and sale of its trademarked Captisol material.
78GF Score
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