Insight Guru flags valuation flip as Merck trades at 52.2x operating profit vs Lilly 25.3x
Reuters2026/09/10 19:50- Insight Guru analysis flagged a valuation reversal between Merck and Eli Lilly, with Merck now trading at a premium despite slower growth.
- Market pricing implies 52.2x price-to-operating-income for Merck versus 25.3x for Lilly, a flip from 10.3x versus 30x a year ago.
- Merck’s trailing operating income fell 64.8% over the last 12 months, inflating the multiple as investors focus on pipeline execution.
- Management points to more than $70 billion in commercial opportunity from over 20 new products to offset eventual Keytruda patent expiry.
- Lilly shows stronger momentum, with last-12-month revenue growth of 49.6% versus 4.6% for Merck, pressuring the premium’s justification.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Intel-supported chip manufacturer Altera plans to go public this year, with a financing scale expected to exceed 2 billions USD.
According to media reports citing sources familiar with the matter, chipmaker Altera, backed by private equity giant Silver Lake and Intel, is preparing to confidentially file for an initial public offering (IPO), which could take place as soon as this year. The IPO is expected to raise more than 2 billions USD.
NPKI Chief Accounting Officer Warren Matthew James disposes of USD 40,112 in common shares
GSI Technology VP, Taiwan Operations Bor-Tay Wu files initial beneficial ownership statement
nLIGHT CEO Scott H. Keeney disposes of common shares worth $8.82 million
Crypto prices
More
