Eli Lilly & Co. (NYSE:LLY)

Price to Earnings (P/E) Ratio

The P/E ratio data begins in March 2020 with no values reported until March 2021, when it stands at 31.95. From that point, there is a general upward trend until it peaks dramatically at 135.24 in December 2023. Subsequently, the ratio declines steadily, falling to 43.95 by June 2025. This pattern suggests an initial increase in market valuation relative to earnings, followed by a significant correction or normalization towards mid-2025.

Price to Operating Profit (P/OP) Ratio

Similarly, the P/OP ratio shows no values before March 2021, starting at 32.66. It rises to a peak of 109.75 in December 2023, mirroring the trend seen in the P/E ratio. After this peak, the ratio decreases to 35.19 by June 2025. The trend indicates increasing investor valuation measured against operating profit up to late 2023, then a clear contraction in valuation multiples through 2025.

Price to Sales (P/S) Ratio

The Price to Sales ratio starts at 8.06 in March 2021, with fluctuations observed over the periods. It generally rises to a high of 20.77 in December 2023, consistent with the other valuation multiples. After this peak, the ratio slightly declines to 11.39 by June 2025. The trend reflects a considerable expansion in market valuation relative to sales up to late 2023, followed by a partial reversion.

Price to Book Value (P/BV) Ratio

The P/BV ratio presents a longer timeline, starting at 47.73 in March 2020. Initially, it trends downward reaching a low of 25.28 by December 2020, indicating a decrease in market valuation relative to book value during this period. Subsequently, the ratio rises sharply, peaking at 65.8 in September 2023. After this peak, it declines to 33.19 by June 2025. This pattern reveals fluctuations in the market’s assessment of net asset value, with a notable rebound after 2020 followed by a downturn after late 2023.

Share Price

The share price demonstrated significant volatility over the analysis period, beginning at $153.63 at the end of Q1 2020. There was a decline during mid-2020, reaching a low of approximately $131.31 by Q3 2020, followed by a sharp upward trend peaking at $745.91 by Q4 2023. After this peak, the price experienced some fluctuation, slightly declining toward $640.86 by the middle of 2025. Overall, the trend indicates strong growth in share price, especially between 2021 and late 2023, followed by a moderate correction.

Earnings Per Share (EPS)

EPS values, available from Q1 2021 onward, showed moderate variability within the range of approximately $5.25 to $14.58. Initial figures around $6.24 to $6.57 characterized the early period. A notable growth phase began near Q3 2023, where EPS rose from around $5.99, reaching a high of $14.58 in Q1 2025. This upward trajectory in EPS suggests improved profitability over time, with a clear acceleration in earnings growth starting in late 2023.

Price-to-Earnings (P/E) Ratio

The P/E ratio displayed an upward trend, starting at roughly 28.77 in Q2 2021 and increasing sharply to a peak of 135.24 in Q4 2023. Following this spike, the ratio decreased steadily to 43.95 by Q2 2025. The rising P/E indicates increasing investor expectations or elevated share prices relative to earnings during late 2022 and 2023, potentially reflecting market optimism. The subsequent decline suggests a normalization of valuations or adjustment in market sentiment.

Share Price

The share price demonstrates a generally upward trend over the observed periods from March 31, 2020, through June 30, 2025. Initially, it declined from $153.63 in March 2020 to a low near $131.31 in September 2020, then steadily increased with occasional fluctuations. Notable jumps occurred in the second half of 2021 and throughout 2023 and early 2024, peaking at $867.05 by December 31, 2024. However, a decline is observed in the first half of 2025, falling to $640.86 by June 30, 2025, indicating potential market adjustments or changing investor sentiment in that timeframe.

Operating Profit per Share

Operating profit per share is available from March 31, 2020, onward and exhibits an overall growth trend. The metric rose from approximately $6.32 in early 2020 to $18.21 by June 30, 2025. The growth includes moderate fluctuations, with a slight dip around March to December 2022, followed by a strong upward momentum starting in early 2023. This suggests improving operational efficiency or profitability over the period despite some short-term variability.

Price to Operating Profit Ratio (P/OP)

The P/OP ratio shows considerable volatility across the periods examined. Starting at 32.66 in March 2020, the ratio fluctuated within the 30 to 60 range through 2022, then sharply increased in 2023, reaching a peak above 100 in the fourth quarter. This peak indicates that the share price outpaced operating profit growth substantially during this period. Subsequently, the ratio decreased steadily through 2024 and into mid-2025, falling to approximately 35.19. This decline suggests a realignment of the share price relative to operating profits, possibly reflecting improved valuation or adjustments in market expectations.

Overall Observations

The data presents a picture of a company experiencing robust growth in operating profitability over several years, accompanied by a share price that largely tracks this growth with some lag and periods of overvaluation, as indicated by the P/OP ratio peaks. The recent decrease in the P/OP ratio combined with the share price retreat in early 2025 could suggest caution among investors or a phase of valuation correction after significant increases in prior quarters. Monitoring future periods will be important to assess whether these trends indicate a stabilization or continued volatility.

The share price exhibited significant volatility over the observed periods, with a notable initial decline from March to September 2020, followed by a strong recovery and growth trend peaking around December 2023 at approximately $746. Subsequently, the price showed a moderate decline in early 2025, ending at around $641 by June 2025.

Sales per share data available from March 2021 onwards demonstrated a consistent upward trajectory. Starting at $25.6 in the first reported quarter, sales per share increased steadily each subsequent quarter, reaching $56.27 by June 2025, more than doubling over the observed period.

The Price-to-Sales (P/S) ratio, which compares the share price to sales per share, displayed fluctuating patterns until mid-2021, with values ranging between approximately 6.88 and 9.99. From late 2021 onward, the P/S ratio increased markedly, peaking at 20.77 in September 2023. Following this peak, the ratio gradually declined, ending at 11.39 in June 2025.

Overall, the data reflects a strong growth in sales per share, paralleled by a substantial increase in share price throughout most of the period. The P/S ratio's increase followed by a decline indicates changing investor expectations about the stock's valuation relative to sales, suggesting that while sales growth was steady, share price valuation became more tempered after late 2023.

Share Price Trends

The share price exhibited considerable volatility throughout the observed periods. Initially, it decreased from $153.63 as of March 31, 2020, to a low of $131.31 by September 30, 2020. Following this trough, there was a strong upward trajectory, with prices peaking at $745.91 by December 31, 2023. After this peak, a declining trend was observed, with the share price falling to $640.86 by June 30, 2025. These fluctuations indicate significant market revaluation over the period.

Book Value per Share (BVPS) Movements

BVPS demonstrated a steady and generally upward progression across the timeline. Starting at $3.22 in March 2020, it rose consistently, reaching $11.34 by December 2023 and continuing to increase thereafter, culminating at $19.31 by June 2025. Minor fluctuations were noted, such as slight decreases around June 2021 and December 2023, but the overall trend was positive. This growth suggests strengthening equity value from the company’s perspective.

Price-to-Book Value (P/BV) Ratio Dynamics

The P/BV ratio exhibited pronounced fluctuations throughout the timeline. Early on, the ratio dropped from 47.73 at March 2020 to 26.02 by September 2020, reflecting a market price decline relative to book value. Thereafter, it oscillated, peaking sharply at 65.8 in December 2023 before declining again to 33.19 by June 2025. These wide swings indicate varying market sentiment and possibly changes in investor expectations relative to the underlying accounting value.

Summary of Relationships and Implications

The share price and BVPS generally trended upward, with share price increases being far more volatile and pronounced compared to the gradual BVPS growth. The P/BV ratio oscillated significantly, suggesting that market valuations often diverged substantially from book value measures. The sharp rise and subsequent fall in share price and P/BV ratio near late 2023 and early 2024 reflect periods of heightened investor optimism followed by correction phases. The consistent BVPS growth indicates steady accumulation of net asset value, aligning with a solid fundamental basis despite market fluctuations.