Ligand Pharmaceuticals (FRA:LGDN) Moat Score: 6/10 (As of Jul. 03, 2026)


FRA:LGDN Ligand Pharmaceuticals Inc FRA:LGDN
73 GF Score
Price €266.00
GF Value €150.40
Valuation Significantly Overvalued
! 5 Warning Signs
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What is Ligand Pharmaceuticals Moat Score?

Ligand Pharmaceuticals FRA:LGDN +1.53% 73 Moat Score is 6 as of Jul. 03, 2026. GuruFocus rates FRA:LGDN with a GF Score™ of 73/100 and a GF Value™ of €150.40 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 1,399 Biotechnology companies, Ligand Pharmaceuticals ranks better than 98.93% on this metric.

Ligand Pharmaceuticals has the Moat Score of 6, which implies that the company might have Narrow Moat - Strong narrow moat, clearly distinguishable but not wide.

Ligand Pharmaceuticals has Narrow Moat: Ligand Pharmaceuticals Inc has a strong narrow moat due to its valuable intellectual property and consistent innovation in pharmaceuticals. However, it lacks the scale or regulatory barriers to be considered a wide moat.

Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more.

The company's Moat Score is based on these criteria:

1. Market leadership and sustainable market share
2. Network effects and significant customer switching costs
3. Valuable intellectual property and patents
4. Strong brand strength and deep customer loyalty
5. Durable cost advantages (e.g., economies of scale, proprietary technology)
6. Significant regulatory barriers and exclusive licenses
7. Superior distribution network
8. Strong and sustainable pricing power
9. Consistent and impactful innovation and R&D capabilities

Based on the research, GuruFocus believes Ligand Pharmaceuticals might have Narrow Moat - Strong narrow moat, clearly distinguishable but not wide.

Ligand Pharmaceuticals  (FRA:LGDN) Moat Score Explanation

The Moat Score ranges from 0 to 10, with 10 as the highest. GuruFocus divided Moat Score into following 8 categories:

Moat Score Moat Level
10Wide Moat - Exceptionally dominant and durable wide moat
8 - 9Wide Moat - Clear and robust wide moat
7Wide Moat - Entry-level wide moat, clearly possessing durable advantages
6Narrow Moat - Strong narrow moat, clearly distinguishable but not wide
5Narrow Moat - Solid narrow moat
4Narrow Moat - Discernible but modest moat
1 - 3No Moat - Very weak/transient advantages
0No Moat - No discernible moat

Ligand Pharmaceuticals Moat Score Related Terms

FRA:LGDN vs DFTX, CGON, XENE: Moat Score Comparison

For the Biotechnology subindustry, Ligand Pharmaceuticals's Moat Score, along with its competitors' market caps and Moat Score 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 Moat Score vs Biotechnology Industry

For the Biotechnology industry and Healthcare sector, Ligand Pharmaceuticals's Moat Score distribution charts can be found below:

* The bar in red indicates where Ligand Pharmaceuticals's Moat Score falls into.


FRA:LGDN
73GF Score
Ligand Pharmaceuticals Inc FRA:LGDN
Moat Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Frequently Asked Questions Learn more about Moat Score →
What does a Moat Score of 6 mean?
Ligand Pharmaceuticals (FRA:LGDN) has a Moat Score of 6 as of Jul. 03, 2026. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. According to the industry distribution chart, Ligand Pharmaceuticals ranks #15 out of 1399 companies in the Biotechnology industry, placing it in the top 1.1%.
Is Ligand Pharmaceuticals' Moat Score too high?
Ligand Pharmaceuticals' current Moat Score is 6. The Biotechnology industry median Moat Score is 2.00. Ligand Pharmaceuticals' value of 6 is 200% above this industry median. Based on the distribution chart, Ligand Pharmaceuticals ranks #15 out of 1399 companies in the Biotechnology industry, which is in the top quartile — a strong position relative to peers. Overall, Ligand Pharmaceuticals has a GF Score™ of 73/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Ligand Pharmaceuticals' Moat Score compare to DFTX and CGON?
According to the Biotechnology industry distribution chart, Ligand Pharmaceuticals ranks #15 out of 1399 companies for Moat Score. This places Ligand Pharmaceuticals in the top 1% of its industry — outperforming the majority of peers. The industry median Moat Score is 2.00. Ligand Pharmaceuticals' value of 6 is 200% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Moat Score for a Biotechnology company?
The median Moat Score among Biotechnology companies is 2.00, based on 1,399 companies in the industry. Companies in the top quartile (top 25%) have a Moat Score significantly above this median, while those in the bottom quartile fall well below. However, Moat Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Ligand Pharmaceuticals's current Moat Score of 6 is 200% 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 Moat Score mean?
A high Moat Score can signal that a stock is expensive relative to its fundamentals. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. For the Biotechnology industry, the median Moat Score is 2.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ligand Pharmaceuticals's current Moat Score is 6. 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 €150.40, compared to a current price of €266.00 — trading 76.9% above its estimated fair value. The current Moat Score is 6 and 200% above the Biotechnology industry median of 2.00. Ligand Pharmaceuticals' overall GF Score™ is 73/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Moat Score calculated?
Moat Score is calculated from a company's financial statements. For Ligand Pharmaceuticals (FRA:LGDN), the current Moat Score is 6 as of Jul. 03, 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 €266.00 is trading 76.9% above its estimated GF Value™ of €150.40. GuruFocus considers Ligand Pharmaceuticals to be Significantly Overvalued.

Key valuation signals for FRA:LGDN:

  • Moat Score: 6
  • GF Value™: €150.40 vs. price of €266.00 (76.9% above fair value)
  • GF Score™: 73/100 with 5 warning signs
  • Industry Position: 200% above the Biotechnology median (#15 of 1399)

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 Business Description

Other Exchanges LGND:USA
Address 555 Heritage Drive, Suite 200, Jupiter, FL, USA, 33458
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.
73GF Score

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Moat Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€266.00
Price
€150.40
GF Value