Eli Lilly or Novo Nordisk: which stock is cheaper in 2026?
As of October 5, 2026, Eli Lilly (LLY) trades at 38.4× earnings (P/E) and Novo Nordisk (NVO) at 9.4×, according to Kaplio. The median across the 157 pharma companies above $2bn in Kaplio's universe is 27.5×. Kaplio's verdict: Eli Lilly, cheap; Novo Nordisk, cheap. Value range by multiples: $818–$1,442 for Eli Lilly and $100–$117 for Novo Nordisk. Against its own value range, Novo Nordisk is the cheaper of the two today.
According to the Kaplio Summary
The same verdict as each company's page: price range by multiples, the four lights, the expected return if consensus is right and what Buffett and Lynch would say today.
| Eli Lilly (LLY) | Novo Nordisk (NVO) | |
|---|---|---|
| Summary valuation | cheap ($818–$1,442) | cheap ($100–$117) |
| The four lights | Valuation: P/E 38.4× (cheap) Business: ROIC 31 % (excellent) Balance sheet: Net debt/EBITDA 1.3× (solid) Results: 7 of 8 (on track) | Valuation: P/E 9.4× (cheap) Business: ROIC 30 % (solid) Balance sheet: Net debt/EBITDA 0.7× (solid) Results: 7 of 8 (on track) |
| Expected return (per year) | — | -1.2 % a year (to 2028) |
| Buffett method | quality 82 · would not approve | quality 94 · approves |
| Lynch method | fast grower · would wait | fast grower · approves |
Metrics side by side
| Metric | Eli Lilly (LLY) | Novo Nordisk (NVO) |
|---|---|---|
| Overview | ||
| Market Cap | $1.1T | $170B |
| Price | $1,142.85 | $38.31 |
| Valuation | ||
| P/E | 38.4× | 9.4× |
| P/B | 30.1× | 5.0× |
| P/S | 13.5× | 3.4× |
| EV/EBITDA | 25.9× | 6.9× |
| FCF Yield | 1.9 % | 4.5 % |
| Dividend Yield | 0.6 % | 4.8 % |
| Profitability | ||
| ROIC | 31.0 % | 30.0 % |
| ROE | 92.6 % | 59.1 % |
| Gross Margin | 83.4 % | 80.6 % |
| Operating Margin | 49.7 % | 43.1 % |
| Net Margin | 33.5 % | 35.3 % |
| Growth | ||
| Revenue 5Y CAGR | 21.6 % | 19.5 % |
| EPS 5Y CAGR | 29.0 % | 20.6 % |
| FCF 5Y CAGR | 14.9 % | -0.6 % |
| Balance Sheet | ||
| Net Debt / EBITDA | 1.3× | 0.7× |
| Debt / Equity | 1.6× | 0.6× |
Trailing twelve months where available; otherwise the latest fiscal year. Growth: five-year compound annual rate.