Eli Lilly & Co. (NYSE:LLY)

Price to Earnings (P/E) Ratio

The price to earnings ratio exhibits a general increasing trend from 31.95 in 2020 to a peak of 135.24 in 2023, followed by a decline to 77.63 in 2024. This pattern indicates a significant expansion in valuation multiples over the period, particularly pronounced in 2023, before partially normalizing in the subsequent year.

Price to Operating Profit (P/OP) Ratio

The price to operating profit ratio similarly rose from 32.66 in 2020 to a high of 109.75 in 2023, before decreasing to 63.73 in 2024. This trend mirrors the P/E ratio, reflecting increased market valuation relative to operating profit, with a sharp elevation in 2023, and a subsequent reduction in 2024.

Price to Sales (P/S) Ratio

Price to sales ratio remained relatively stable between 8.01 and 10.96 from 2020 through 2022, then surged to 20.77 in 2023, before slightly decreasing to 18.25 in 2024. The data suggests sales valuation remained steady initially, followed by strong investor optimism or growth assumptions materializing in 2023, with a minor correction later.

Price to Book Value (P/BV) Ratio

The price to book value ratio declined from 35.07 in 2020 to 25.28 in 2021, then increased to 29.36 in 2022. A substantial jump occurred in 2023, reaching 65.80, followed by a decrease to 57.93 in 2024. This indicates fluctuations in the market pricing relative to net asset value, with a notable peak in 2023 similar to other valuation multiples.

Share Price

The share price demonstrates a consistent upward trend over the five-year period. Starting at $206.46 in 2020, it increased steadily each year to reach $867.05 by the end of 2024. The most notable surge occurred between 2022 and 2023, where the share price more than doubled from $329.07 to $745.91.

Earnings per Share (EPS)

EPS values show some volatility across the timeline. EPS decreased slightly from $6.46 in 2020 to $5.86 in 2021, then recovered to $6.57 in 2022. A decline is observed again in 2023 when EPS dropped to $5.52, followed by a substantial increase to $11.17 in 2024, which is the highest point in the period and nearly doubles the previous year’s figure.

Price-to-Earnings (P/E) Ratio

The P/E ratio exhibits significant variation during the period. Starting at 31.95 in 2020, the ratio steadily rose to 40.66 in 2021 and further to 50.08 in 2022. A sharp spike emerges in 2023, with the ratio more than doubling to 135.24, before dropping to 77.63 in 2024. The elevated P/E ratios in the last two years may indicate market optimism or expectations of accelerated future earnings growth.

Summary of Trends

The data reflects a strong increase in market valuation as evidenced by the rising share price and elevated P/E ratios, especially in the later years. Despite fluctuations in earnings per share, notably the decline in 2021 and 2023, there is a pronounced recovery and growth in 2024. The exceptionally high P/E in 2023 suggests the market placed a premium on future earnings potential, which aligns with the significant EPS growth observed in 2024. Overall, the financial indicators point to investor confidence and expectations of sustained profitability improvements.

Share Price

The share price demonstrates a robust upward trajectory over the analyzed five-year period. Starting at $206.46 at the end of 2020, it increased steadily to $238.31 in 2021 and $329.07 in 2022. A substantial surge is noted in 2023, with the price more than doubling to $745.91, and the growth continues in 2024, reaching $867.05. This pattern indicates strong market confidence and possibly positive developments or expectations about the company's future performance.

Operating Profit Per Share

Operating profit per share shows a generally positive but less dramatic trend compared to the share price. Starting at $6.32 in 2020, it increased modestly to $6.68 in 2021 and further to $7.50 in 2022. In 2023, a slight decline to $6.80 is observed, interrupting the growth pattern. However, 2024 sees a significant rebound to $13.60, nearly doubling the previous year's value, signaling an exceptional improvement in profitability per share.

Price to Operating Profit Ratio (P/OP)

The P/OP ratio exhibits considerable volatility across the years. It starts at a moderate 32.66 in 2020 and gradually increases to 35.70 in 2021, then to 43.88 in 2022. A pronounced spike occurs in 2023, with the ratio reaching 109.75, indicating that the share price rose much faster than operating profit per share that year, potentially reflecting heightened market optimism or expectations beyond current earnings. In 2024, the ratio decreases to 63.73, which, while lower than the previous year, remains elevated compared to the earlier period, suggesting continued strong investor valuation relative to operating profits.

The analyzed financial data reveals notable trends in share price, sales per share, and price-to-sales (P/S) ratio over a five-year period.

Share Price

The share price experienced a consistent upward trend, starting from $206.46 at the end of 2020 and rising to $867.05 by the end of 2024. The most significant jump occurred between 2022 and 2023, where the share price more than doubled, increasing from $329.07 to $745.91. This suggests strong market confidence or positive developments influencing the company’s valuation.

Sales Per Share

Sales per share showed steady growth throughout the period. Beginning at $25.60 in 2020, sales per share increased to $47.50 by 2024. The growth rate accelerated particularly between 2023 and 2024, with a substantial increase from $35.91 to $47.50. This pattern indicates an improvement in the company’s revenue generation on a per-share basis, reflecting possible enhancements in operational performance or market demand.

Price-to-Sales (P/S) Ratio

The P/S ratio remained relatively stable around 8.0 in the first two years (2020 and 2021), then rose sharply to 10.96 in 2022, followed by a steep increase to 20.77 in 2023, before declining slightly to 18.25 in 2024. This ratio pattern suggests that although the share price increased significantly, it outpaced sales growth, leading to higher valuation multiples in 2023. The subsequent decline in 2024 indicates a modest reversion or market adjustment, potentially reflecting a recalibration of investor expectations or valuation alignment with sales growth.

Overall, the data demonstrates robust appreciation in both market valuation and sales performance, with the company achieving substantial gains in share price and sales per share. The elevated P/S ratio in recent years, followed by a slight decrease, highlights changing investor sentiment and potential valuation normalization after a period of rapid expansion.

The share price shows a substantial upward trend over the analyzed five-year period. Starting from $206.46 at the end of 2020, it increases steadily to $238.31 in 2021, followed by a more pronounced rise to $329.07 in 2022. The most significant jumps occur in 2023 and 2024, where the share price reaches $745.91 and $867.05 respectively. This suggests a strong market confidence and increased valuation over the years, particularly in the last two years of the period.

Book value per share (BVPS) also displays consistent growth across the reported years. Beginning at $5.89 in 2020, BVPS rises to $9.43 in 2021 and continues upward to $11.21 in 2022. It remains relatively stable in 2023 at $11.34 then increases further to $14.97 in 2024. This indicates an expanding equity base per share, pointing to an improvement in the company’s net asset value on a per-share basis.

The price-to-book value (P/BV) ratio fluctuates more notably during the timeframe. Initially, the ratio is very high at 35.07 in 2020, decreases to 25.28 in 2021, and then slightly rises to 29.36 in 2022. However, it shows a sharp increase to 65.8 in 2023, followed by a reduction to 57.93 in 2024. These variations imply considerable changes in market valuation relative to the company's book value, with ratios indicating that the market price of shares is significantly higher than their book value, especially in the latter years. The peak in 2023 suggests possibly heightened investor optimism or expectations of future growth beyond what is reflected in book value.

Overall, the data reveals robust growth in both market valuation and book value per share, with particularly strong appreciation in share price and P/BV ratio during 2023 and 2024. This pattern reflects positive market sentiment and an improving equity position, although the elevated P/BV ratio warrants attention as it may indicate a premium pricing relative to underlying book value.