<div id="readability-page-1"><div><p>The FDA’s Breakthrough Therapy designation for Eli Lilly (LLY) candidate sofetabart mipitecan in platinum resistant ovarian cancer has pushed oncology back into focus for a stock many investors mainly associate with obesity drugs.</p> <p>See our latest analysis for Eli Lilly.</p> <p>The Breakthrough Therapy news lands after a busy start to the year for Eli Lilly, with an AI co-innovation lab launched alongside NVIDIA, new distribution for its obesity medicines through CenterWell Pharmacy, and fresh legal scrutiny around GLP 1 compounding. While the 1 day share price return of 2.12% and 30 day share price return of 1.25% show some near term volatility, a 90 day share price return of 28.78% and a 1 year total shareholder return of 36.52% point to momentum that has been building on top of very large 3 year and 5 year total shareholder returns.</p> <p>If you are looking beyond Eli Lilly and want more ideas in the same space, this could be a good moment to scan healthcare stocks for other healthcare names on your radar.</p> <p>With Eli Lilly now trading at $1,064.29, sitting only about 4% below the average analyst price target and implying roughly a 14% intrinsic discount, you have to ask yourself: is this still a buying opportunity, or is the market already pricing in future growth?</p> <h2>Most Popular Narrative: 10.5% Undervalued</h2> <p>According to the most followed narrative on Eli Lilly, the fair value of $1,189.18 sits comfortably above the last close of $1,064.29, framing the current debate around how much of the GLP 1 story is already in the price.</p> <blockquote> <p><em>Mounjaro/Zepbound: Lilly’s tirzepatide franchise is the engine of growth. Mounjaro (for type 2 diabetes) and Zepbound (obesity) each grew rapidly in 2024. Analysts project Mounjaro sales of $18.4 B in 2025 and $22.8B in 2026, and Zepbound jumping from $4.9B (2024) to $12.5 B in 2025 (and $18.1B in 2026). In other words, Lilly’s tirzepatide sales are expected to surpass Novo’s by 2026.</em></p> </blockquote> <p>Read the complete narrative.</p> <p>Want to see what sits behind that $1,189.18 fair value call? According to eat_dis_watermelon, it hinges on fast compounding revenue, rising profitability, and a rich future earnings multiple that looks more like a high growth tech profile than a traditional pharma giant.</p> <p><strong>Result: Fair Value of $1,189.18 (UNDERVALUED)</strong></p> <p>Have a read of the narrative in full and understand what's behind the forecasts.</p> <p>However, this hinges on premium GLP 1 pricing and smooth capacity expansion, and any pricing pressure, safety scare, or facility delay could quickly weaken that thesis.</p> <p>Find out about the key risks to this Eli Lilly narrative.</p> <h2>Another View: What The P/E Ratio Is Saying</h2> <p>Our DCF work suggests Eli Lilly at $1,064.29 trades about 13.7% below an estimated fair value of $1,233.91, which points to an undervalued setup. Yet the market is already paying 51.8x earnings versus 19.8x for the US pharma industry, 16.8x for peers, and a fair ratio of 42.2x. This raises the question of whether this reflects a quality premium or a valuation risk that is building up.</p> <p>See what the numbers say about this price — find out in our valuation breakdown.</p> <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/8b601601-04e4-456e-8b6c-835629914d4e/chart/pe-multiple-vs-industry?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/8b601601-04e4-456e-8b6c-835629914d4e/chart/pe-multiple-vs-industry"/><figcaption>NYSE:LLY P/E Ratio as at Jan 2026</figcaption></figure><h2> Build Your Own Eli Lilly Narrative</h2> <p>If you look at these numbers and reach a different conclusion, or simply want to test your own view against the data, you can build a personalized Eli Lilly story in minutes, starting with Do it your way.</p> <p>A great starting point for your Eli Lilly research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.</p> <h2>Looking for more investment ideas?</h2> <p>If you only stop at Eli Lilly, you might miss other opportunities that fit your style, so take a few minutes to see what else stands out.</p> <ul> <li>Spot potential value plays early by checking out these 874 undervalued stocks based on cash flows, which screens for prices that may sit below estimated cash flow potential.</li> <li>Zero in on income focused opportunities through these 13 dividend stocks with yields &gt; 3%, where yields above 3% meet supporting fundamentals.</li> <li>Position yourself for long term tech shifts with these 23 quantum computing stocks, which focuses on companies working on quantum computing applications.</li> </ul> <p><em> This article by Simply Wall St is general in nature. <strong>We provide commentary based on historical data     and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice.</strong> It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your     financial situation. We aim to bring you long-term focused analysis driven by fundamental data.     Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.     Simply Wall St has no position in any stocks mentioned.</em></p></div></div>

<p>Eli Lilly (LLY) has received FDA Breakthrough Therapy designation for its candidate sofetabart mipitecan in treating platinum-resistant ovarian cancer, shifting focus back to oncology. The stock has shown volatility with a 1-day return of 2.12% and a 30-day return of 1.25%, but a strong 90-day return of 28.78% and a 1-year return of 36.52%. Currently trading at $1,064.29, it is about 4% below the average analyst price target of $1,189.18, suggesting it may be undervalued. Analysts project significant growth in sales for its tirzepatide franchise, raising questions about future pricing and valuation risks.</p>

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Eli Lilly (LLY) Valuation Check After Breakthrough Therapy Status For Sofetabart Mipitecan