Eli Lilly and CoXSWX:LLY +1.57%100 Return-on-Tangible-Equity is 185.01% as of Mar. 2026, which is 203% above its 10-year median of 61.06. GuruFocus rates XSWX:LLY with a GF Score™ of 100/100 and a GF Value™ of CHF1,111.71 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 896 Drug Manufacturers companies, Eli Lilly and Co ranks better than 94.2% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Eli Lilly and Co's annualized net income for the quarter that ended in Mar. 2026 was CHF23,291 Mil. Eli Lilly and Co's average shareholder tangible equity for the quarter that ended in Mar. 2026 was CHF12,589 Mil. Therefore, Eli Lilly and Co's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 185.01%.
The historical rank and industry rank for Eli Lilly and Co's Return-on-Tangible-Equity or its related term are showing as below:
XSWX:LLY'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -4.6 Med: 61.06 Max: 1678.82
Current: 234.77
During the past 13 years, Eli Lilly and Co's highest Return-on-Tangible-Equity was 1,678.82%. The lowest was -4.60%. And the median was 61.06%.
XSWX:LLY's Return-on-Tangible-Equity is ranked better than 94.2% of 896
companies
in the Drug Manufacturers industry
Industry Median: 7.795
vs XSWX:LLY: 234.77
Eli Lilly and Co (XSWX:LLY) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Eli Lilly and Co Return-on-Tangible-Equity Related Terms
Eli Lilly and Co Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Eli Lilly and Co's Return-on-Tangible-Equity 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.
XSWX:LLY vs JNJ, ABBV, MRK: Return-on-Tangible-Equity Comparison
For the Drug Manufacturers - General subindustry, Eli Lilly and Co's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Eli Lilly and Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Eli Lilly and Co's Return-on-Tangible-Equity 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 185.01% mean?
Eli Lilly and Co (XSWX:LLY) has a Return-on-Tangible-Equity of 185.01% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Eli Lilly and Co and its competitors. This is 203% above median its historical median of 61.06. According to the industry distribution chart, Eli Lilly and Co ranks #52 out of 896 companies in the Drug Manufacturers industry, placing it in the top 5.8%.
Is Eli Lilly and Co's Return-on-Tangible-Equity too high?
Eli Lilly and Co's current Return-on-Tangible-Equity of 185.01% is 203% above median its 10-year median of 61.06. The Drug Manufacturers industry median Return-on-Tangible-Equity is 7.80. Eli Lilly and Co's value of 185.01% is 2273.4% above this industry median. Based on the distribution chart, Eli Lilly and Co ranks #52 out of 896 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, Eli Lilly and Co has a GF Score™ of 100/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Eli Lilly and Co's Return-on-Tangible-Equity compare to JNJ and ABBV?
According to the Drug Manufacturers industry distribution chart, Eli Lilly and Co ranks #52 out of 896 companies for Return-on-Tangible-Equity. This places Eli Lilly and Co in the top 6% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 7.80. Eli Lilly and Co's value of 185.01% is 2273.4% above this benchmark. While the company's 10-year median is 61.06 vs. the industry median of 7.80, Eli Lilly and Co 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 Return-on-Tangible-Equity for a Drug Manufacturers company?
The median Return-on-Tangible-Equity among Drug Manufacturers companies is 7.80, based on 896 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Eli Lilly and Co's current Return-on-Tangible-Equity of 185.01% is 2273.4% 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Eli Lilly and Co and its competitors. For the Drug Manufacturers industry, the median Return-on-Tangible-Equity is 7.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Eli Lilly and Co's current Return-on-Tangible-Equity is 185.01%, which is 203% above median its own 10-year median of 61.06. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Eli Lilly and Co stock overvalued right now?
Based on GuruFocus' analysis, Eli Lilly and Co (XSWX:LLY) is currently considered Modestly Undervalued. The stock's GF Value™ is CHF1,111.71, compared to a current price of CHF970.00 — trading 12.7% below its estimated fair value. The current Return-on-Tangible-Equity is 185.01%, which is 203% above median its 10-year median of 61.06 and 2273.4% above the Drug Manufacturers industry median of 7.80. Eli Lilly and Co's overall GF Score™ is 100/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Eli Lilly and Co (XSWX:LLY), the current Return-on-Tangible-Equity is 185.01% as of Mar. 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 Eli Lilly and Co (XSWX:LLY) Overvalued in 2026?
Based on GuruFocus' analysis, Eli Lilly and Co stock appears to be undervalued.
The current stock price of CHF970.00 is trading 12.7% below its estimated GF Value™ of CHF1,111.71.
GuruFocus considers Eli Lilly and Co to be Modestly Undervalued.
Key valuation signals for XSWX:LLY:
Return-on-Tangible-Equity: 185.01% (203% above median its 10-year median of 61.06)
GF Value™: CHF1,111.71 vs. price of CHF970.00 (12.7% below fair value)
Industry Position: 2273.4% above the Drug Manufacturers median (#52 of 896)
No single metric tells the full story. See the XSWX:LLY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Eli Lilly is a drug firm with a focus on neuroscience, cardiometabolic, cancer, and immunology. Lilly's key products include Verzenio and Jaypirca for cancer; Mounjaro, Zepbound, Foundayo, Jardiance, Trulicity, Humalog, and Humulin for cardiometabolic; and Taltz and Olumiant for immunology.
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