Eli Lilly and Co · Pharmaceuticals

LLY

$1,164.92

B
Value CreationHigh GrowthHigh Margin

As of: 2026-09-01 16:14:42 (KST)

+23.5%

Expected return

58%

Success probability

-27.3%

Downside risk

For informational purposes only.

Not investment advice.

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Investment Summary

Eli Lilly and Co in the Pharmaceuticals industry earns B grade, reflecting a Monte Carlo score of 69 out of 100. The expected return stands at +23.5%, with a 58% probability of positive outcomes. At the current price of $1164.92, These figures are derived from 10,000 Monte Carlo simulations and reflect the inherent uncertainty in financial markets.

Why This Valuation?

The Reverse DCF valuation signals "Strong Buy" for this ticker. An implied growth rate of 3.8% (actual: 17.7%) drives the valuation framework. The estimated P50 intrinsic value of $1.8K provides a benchmark for assessing current pricing. The Reverse-DCF implied 84% success probability at $1.2K quantifies the margin of safety implied by this "Strong Buy" assessment.

Grade Explanation

Grade B (69) indicates a fair risk-reward trade-off. The expected return of +23.5% and success probability of 58% suggest a measured opportunity.

Monte Carlo Interpretation

Across 10,000 simulated paths, the volatility of 50.6% is elevated, producing a wide dispersion of possible returns. The median (P50) return stands at +13.6%, and the distribution skews positive, indicating upside potential outweighs downside risk. The spread between the 10th percentile (-27.3%) and the 75th percentile (+45.9%) is +73.1%.

Risk Summary

Key risk metrics: VaR(5%) of -27.3%, operating margin of 42.2% (a solid 42.2% operating margin helps cushion downside scenarios), and volatility of 50.6%, where elevated volatility warrants close attention. These three dimensions define the risk landscape at $1.2K.

What is DCF (Discounted Cash Flow)?

DCF estimates a company's intrinsic value by discounting its future cash flows to present value. Modelvix uses Monte Carlo simulation to analyze thousands of scenarios.

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What is WACC (Weighted Average Cost of Capital)?

WACC is the average rate a company pays to finance its assets, used as the discount rate in DCF analysis. Modelvix simulates how WACC changes affect valuation.

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What is Terminal Value?

Terminal value represents the perpetual value of a business beyond the forecast period, often comprising the majority of DCF value. Modelvix analyzes terminal value uncertainty across growth scenarios.

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What is Reverse DCF?

Reverse DCF works backward from the current stock price to infer the growth rate the market expects, helping you assess whether a stock is fairly valued. Modelvix shows what growth assumptions the current price implies.

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