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Eli Lilly and Co (NYSE:LLY) GF Value Rank

: 1 (As of Today)
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Eli Lilly and Co has the GF Value Rank of 1.

The GF Value Rank is determined by the price-to-GF-Value (P/GF Value) ratio, a proprietary metric calculated based on historical multiples along with an adjustment factor based on a company's past returns and growth and future estimates of the business' performance.

GuruFocus found that for valuation, we cannot simply give stocks a better GF Value rank simply because they have a lower P/GF Value ratio. Backtesting shows that over the long term, the two worst-performing groups are the most expensive group (with the highest P/GF Value ratio) and the least expensive group (with the lowest P/GF Value ratio).

We can understand why the most expensive group underperforms. We were initially puzzled by the underperformance of the least expensive group, but we realized there is a reason why some stocks are super cheap. If they look too undervalued, it is often because the businesses behind them are poor quality. The market realized this and gave them low valuations. In a way, the market is efficient.

After multiple backtesting analyses, we granted the stocks in third-cheapest percentile the highest GF Value rank, as they have performed the best over a full market cycle. Stock performance is actually not as sensitive to valuation as it is to growth and profitability. On average, the companies in the 20%-50% valuation groups have similar performances. Therefore, we should avoid the most expensive and the least expensive stocks. We can be more tolerant of valuation.

Please click GF Score to see more details on the GF Score's 5 Key Aspects of Analysis.


Competitive Comparison

For the Drug Manufacturers - General subindustry, Eli Lilly and Co's GF Value Rank, along with its competitors' market caps and GF Value Rank 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.

   

Eli Lilly and Co GF Value Rank Distribution

For the Drug Manufacturers industry and Healthcare sector, Eli Lilly and Co's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Eli Lilly and Co's GF Value Rank falls in comparison to its industry or sector. The grey bar indicates the GF Value Rank's extreme value range as defined by GuruFocus.



Eli Lilly and Co GF Value Rank Related Terms

Thank you for viewing the detailed overview of Eli Lilly and Co's GF Value Rank provided by GuruFocus.com. Please click on the following links to see related term pages.


Eli Lilly and Co (NYSE:LLY) Business Description

Eli Lilly and Co logo
Address
Lilly Corporate Center, Indianapolis, IN, USA, 46285
Eli Lilly is a drug firm with a focus on neuroscience, cardiometabolic, cancer, and immunology. Lilly's key products include Verzenio for cancer; Mounjaro, Jardiance, Trulicity, Humalog, and Humulin for diabetes; and Taltz and Olumiant for immunology.
Executives
Eric Dozier officer: EVP, HR & Diversity LILLY CORPORATE CENTER, INDIANAPOLIS IN 46285
Mary Lynne Hedley director C/O TESARO, INC., 1000 WINTER ST., STE 3300, WALTHAM MA 02451
Naarden Jacob Van officer: SVP, CEO LoxoONC, Pres LlyONC C/O ELI LILLY & CO, LILLY CORPORATE CENTER, INDIANAPOLIS IN 46285
Alonzo Weems officer: SVP, ERM & CECO LILLY CORPORATE CENTER, INDIANAPOLIS IN 46285
Diogo Rau officer: SVP & CIDO LILLY CORPORATE CENTER, INDIANAPOLIS IN 46285
Edgardo Hernandez officer: SVP & Pres., Mfg. Operations LILLY CORPORATE CENTER, INDIANAPOLIS IN 46285
Kimberly H Johnson director C/O FANNIE MAE, 1100 15TH STREET, NW, WASHINGTON DC 20005
Anat Ashkenazi officer: SVP & CFO LILLY CORPORATE CENTER, INDIANAPOLIS IN 46285
Gabrielle Sulzberger director 450 LEXINGTON AVENUE, FLOOR 13, NEW YORK NY 10017
Ilya Yuffa officer: SVP and Pres, Lilly Bio-Meds LILLY CORPORATE CENTER, INDIANAPOLIS IN 46285
Anat Hakim officer: Senior VP & General Counsel LILLY CORPORATE CENTER, INDIANAPOLIS IN 46285
Michael B Mason officer: Sr. VP & Pres., Lilly Diabetes LILLY CORPORATE CENTER, INDIANAPOLIS IN 46285
Patrik Jonsson officer: SVP and Pres., Lilly Bio-Meds LILLY CORPORATE CENTER, INDIANAPOLIS IN 46285
Karen Walker director 170 WEST TASMAN DRIVE, SAN JOSE CA 95134
Anne E. White officer: SVP & Pres-Lilly Oncology LILLY CORPORATE CENTER, INDIANAPOLIS IN 46285