Where Will Eli Lilly Be in 10 Years?
If you follow the news at all, you know that GLP-1 weight loss drugs are having a massive impact on society. The leader in the GLP-1 space today is Eli Lilly (NYSE: LLY). That helps explain why Wall Street is so excited about the company's stock, pushing its price-to-earnings (P/E) ratio to a whopping 53 times. There's just one problem investors need to understand before buying this drug maker.
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Eli Lilly's big problem isn't the valuation of its stock. However, the valuation is the starting point for investors who buy it. And right now, Eli Lilly's stock is expensive. For comparison, the S&P 500 (SNPINDEX: ^GSPC) is trading near all-time highs, and the average P/E for the index is roughly 28 times.
Source Fool.com
