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    Eli Lilly: Very Risky At These Levels

    Tue, 01/10/2012 - 16:11 EDT - Seeking Alpha
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    By Dividend Kings:Eli Lilly (LLY) has been strong this past year, rallying more than 18% over the past year. Taking a closer at the stock, it seems like the market has gotten ahead of itself. Here are six points to look at while considering the case for investing in Lilly: Valuation: Ely Lilly’s trailing 5-year valuation metrics suggest that the company is undervalued. Lilly’s current P/B ratio is 3.1 and it has averaged 4.1 over the past 5 years with a high of 6.8 and low of 2.8. Lilly’s current P/S ratio is 1.9 and it has averaged 2.3 over the past 5 years with a high of 3.8 and a low of 1.7. Lilly’s P/E ratio is 9.5 and it has traded at a P/E between 8 and 10 over the past year. Price Target: The consensus price target for the analysts who follow Lilly is $38.75. That is downside ofComplete Story »

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