Up 45% This Year What’s Driving The Growth For Eli Lilly Stock?

Eli Lilly stock (NYSE: LLY) has seen about a 45% rise this year, significantly outperforming the broader S&P500 index, up 16%. Even if we look at the longer term, LLY stock, with a stellar 200% return from levels seen in late 2020, has outperformed the S&P 500 index, up nearly 20%. The stock has been on a strong run for the last few years, primarily due to its pipeline potential. However, from a valuation perspective, at the current price of about $525, LLY stock looks expensive, as discussed below.

This 3x rise for LLY stock since late 2020 can primarily be attributed to 1. a 170% rise in the company’s P/S ratio to 16.9x revenues currently, compared to 6.2x in 2020, 2. a 20% rise in Eli Lilly’s revenue to $30 billion over the last twelve months, compared to $25 billion in 2020, slightly offset by 3. a 5% rise in its total shares outstanding to 949 million. This has meant that Eli Lilly’s
LLY
revenue per share rose 15% to $31.09 over the last twelve months, vs. $27.03 in 2020. Our dashboard on Why Eli Lilly Stock Moved has more details.