Looking into the current session, Eli Lilly and Co Inc. (NYSE:LLY) shares are trading at $1060.01, after a 0.40% drop. Over the past month, the stock decreased by 1.76%, but over the past year, it actually went up by 31.78%. With questionable short-term performance like this, and great long-term performance, long-term shareholders might want to start looking into the company's price-to-earnings ratio.
<img src="https://imageproxy.pbkrs.com/https://www.benzinga.com/files/images/story/2026/1769439631_0.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="Past Year Chart" original-src="https://imageproxy.pbkrs.com/https://www.benzinga.com/files/images/story/2026/1769439631_0.png"/>
<h3>A Look at Eli Lilly and Co P/E Relative to Its Competitors</h3>
The P/E ratio measures the current share price to the company's EPS. It is used by long-term investors to analyze the company's current performance against it's past earnings, historical data and aggregate market data for the industry or the indices, such as S&amp;P 500. A higher P/E indicates that investors expect the company to perform better in the future, and the stock is probably overvalued, but not necessarily. It also could indicate that investors are willing to pay a higher share price currently, because they expect the company to perform better in the upcoming quarters. This leads investors to also remain optimistic about rising dividends in the future. 
Eli Lilly and Co has a lower P/E than the aggregate P/E of 127.31 of the Pharmaceuticals industry. Ideally, one might believe that the stock might perform worse than its peers, but it's also probable that the stock is undervalued. 
<img src="https://imageproxy.pbkrs.com/https://www.benzinga.com/files/images/story/2026/1769439631_1.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="Guage" original-src="https://imageproxy.pbkrs.com/https://www.benzinga.com/files/images/story/2026/1769439631_1.png"/>
In summary, while the price-to-earnings ratio is a valuable tool for investors to evaluate a company's market performance, it should be used with caution. A low P/E ratio can be an indication of undervaluation, but it can also suggest weak growth prospects or financial instability. Moreover, the P/E ratio is just one of many metrics that investors should consider when making investment decisions, and it should be evaluated alongside other financial ratios, industry trends, and qualitative factors. By taking a comprehensive approach to analyzing a company's financial health, investors can make well-informed decisions that are more likely to lead to successful outcomes.

Eli Lilly and Co Inc. (NYSE:LLY) shares are currently trading at $1060.01, down 0.40%. The stock has decreased by 1.76% over the past month but increased by 31.78% over the past year. Investors are advised to consider the company's price-to-earnings (P/E) ratio, which is lower than the industry average of 127.31. A lower P/E may indicate undervaluation, but it could also suggest weak growth prospects. Investors should use the P/E ratio alongside other financial metrics and qualitative factors for informed decision-making.

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A Look Into Eli Lilly and Co Inc's Price Over Earnings