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$LLY

Everything Money on $LLY (Nov 7, 2026)

AI summary · Everything Money

Eli Lilly is still expensive at 65 times free cash flow and a forward P/E of 39; despite great returns on capital and 39% sales growth to a record near $1,450, justifying the price needs much larger potential earnings, which even with GLP-1 drugs looks difficult, so the speaker would probably wait much longer before buying.

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Everything MoneyPublished Nov 7 · 2 passages

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Eli Lilly, the pharmaceutical company responsible for popular weight-loss treatments, hit a record high of nearly $1,450 per share. Its sales jumped by a massive 39% in the last quarter.

Now, folks, for Eli Lilly, yes, I'm talking about looking at certain metrics to determine whether it's worth it. The free cash flow multiple is 65 times, and 158 times over the past five years, meaning its free cash flows have really jumped.

Therefore , to earn and justify this bonus, they must have much larger potential earnings. Is this the case? Even with drugs like Ozempic and all those GLP-1 drugs, this seems like a difficult endeavor.

They have great returns on capital, but for me, I'd probably wait much longer before doing that. Even their forward price-to-earnings ratio is 39, which is still expensive.

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