Ligand PharmaceuticalsFRA:LGDN -2.24%80 PEG Ratio is 8.72 as of Jul. 02, 2026, which is 1221% above its 10-year median of 0.66. GuruFocus rates FRA:LGDN with a GF Score™ of 80/100 and a GF Value™ of €148.66 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 95 Biotechnology companies, Ligand Pharmaceuticals ranks worse than 89.47% on this metric.
* The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
The historical rank and industry rank for Ligand Pharmaceuticals's PEG Ratio or its related term are showing as below:
FRA:LGDN'
s PEG Ratio Range Over the Past 10 Years
Min: 0.09 Med: 0.66 Max: 14.06
Current: 8.9
During the past 13 years, Ligand Pharmaceuticals's highest PEG Ratio was 14.06. The lowest was 0.09. And the median was 0.66.
FRA:LGDN's PEG Ratio is ranked worse than 89.47% of 95
companies
in the Biotechnology industry
Industry Median: 2.02
vs FRA:LGDN: 8.90
Peter Lynch thinks a company with a P/E ratio equal to its growth rate is fairly valued.
Ligand Pharmaceuticals (FRA:LGDN) PEG Ratio Explanation
To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the P/E ratio divided by the growth ratio. He thinks a company with a P/E ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a P/E of 20, instead of a company growing 10% a year with a P/E of 10.
* 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.
FRA:LGDN vs DFTX, CGON, XENE: PEG Ratio Comparison
For the Biotechnology subindustry, Ligand Pharmaceuticals's PEG Ratio, along with its competitors' market caps and PEG 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 PEG Ratio vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Ligand Pharmaceuticals's PEG Ratio distribution charts can be found below:
* The bar in red indicates where Ligand Pharmaceuticals's PEG Ratio falls into.
* 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.
* Note: The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
Ligand Pharmaceuticals (FRA:LGDN) has a PEG Ratio of 8.72 as of Jul. 02, 2026. Price-earnings to growth ratio is the ratio of price-earnings to a company's earnings growth rate. View historical data on Ligand Pharmaceuticals and its competitors. This is 1221% above median its historical median of 0.66. Over the past decade, Ligand Pharmaceuticals' PEG Ratio has ranged from 0.09 to 14.06. According to the industry distribution chart, Ligand Pharmaceuticals ranks #85 out of 95 companies in the Biotechnology industry, placing it in the top 89.5%.
Is Ligand Pharmaceuticals' PEG Ratio too high?
Ligand Pharmaceuticals' current PEG Ratio of 8.72 is 1221% above median its 10-year median of 0.66. Over the past 10 years, this metric has ranged from a low of 0.09 to a high of 14.06. The Biotechnology industry median PEG Ratio is 2.02. Ligand Pharmaceuticals' value of 8.72 is 331.7% above this industry median. Based on the distribution chart, Ligand Pharmaceuticals ranks #85 out of 95 companies in the Biotechnology industry, which is in the bottom quartile relative to peers. Overall, Ligand Pharmaceuticals has a GF Score™ of 80/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Ligand Pharmaceuticals' PEG Ratio compare to DFTX and CGON?
According to the Biotechnology industry distribution chart, Ligand Pharmaceuticals ranks #85 out of 95 companies for PEG Ratio. This places Ligand Pharmaceuticals in the lower half of its industry. The industry median PEG Ratio is 2.02. Ligand Pharmaceuticals' value of 8.72 is 331.7% above this benchmark. Historically, Ligand Pharmaceuticals' own PEG Ratio has ranged from 0.09 to 14.06 over the past decade. While the company's 10-year median is 0.66 vs. the industry median of 2.02, 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 PEG Ratio for a Biotechnology company?
The median PEG Ratio among Biotechnology companies is 2.02, based on 95 companies in the industry. Companies in the top quartile (top 25%) have a PEG Ratio significantly above this median, while those in the bottom quartile fall well below. However, PEG Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Ligand Pharmaceuticals's current PEG Ratio of 8.72 is 331.7% 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 PEG Ratio mean?
A high PEG Ratio can signal that a stock is expensive relative to its fundamentals. Price-earnings to growth ratio is the ratio of price-earnings to a company's earnings growth rate. View historical data on Ligand Pharmaceuticals and its competitors. For the Biotechnology industry, the median PEG Ratio is 2.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ligand Pharmaceuticals's current PEG Ratio is 8.72, which is 1221% above median its own 10-year median of 0.66. 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 €148.66, compared to a current price of €262.00 — trading 76.2% above its estimated fair value. The current PEG Ratio is 8.72, which is 1221% above median its 10-year median of 0.66 and 331.7% above the Biotechnology industry median of 2.02. Ligand Pharmaceuticals' overall GF Score™ is 80/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is PEG Ratio calculated?
PEG Ratio is calculated from a company's financial statements. For Ligand Pharmaceuticals (FRA:LGDN), the current PEG Ratio is 8.72 as of Jul. 02, 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 €262.00 is trading 76.2% above its estimated GF Value™ of €148.66.
GuruFocus considers Ligand Pharmaceuticals to be Significantly Overvalued.
Key valuation signals for FRA:LGDN:
PEG Ratio: 8.72 (1221% above median its 10-year median of 0.66)
GF Value™: €148.66 vs. price of €262.00 (76.2% above fair value)
Industry Position: 331.7% above the Biotechnology median (#85 of 95)
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.
80GF Score
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