LGND PE Ratio & Valuation,Is LGND Overvalued

LGND Relative Valuation

LGND's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, LGND is overvalued; if below, it's undervalued.

Historical Valuation

Ligand Pharmaceuticals Inc (LGND) is now in the Undervalued zone, suggesting that its current forward PS ratio of 15.38 is considered Undervalued compared with the five-year average of -9.89. The fair price of Ligand Pharmaceuticals Inc (LGND) is between 2530.31 to 2571.61 according to relative valuation methord. Compared to the current price of 192.78 USD , Ligand Pharmaceuticals Inc is Undervalued By 92.38%.

Relative Value

Fair Zone

2530.31-2571.61

Current Price：192.78

92.38%

Undervalued

33.49

20.14

EV/EBITDA

Ligand Pharmaceuticals Inc. (LGND) has a current EV/EBITDA of 20.14. The 5-year average EV/EBITDA is 18.32. The thresholds are as follows: Strongly Undervalued below 6.18, Undervalued between 6.18 and 12.25, Fairly Valued between 24.39 and 12.25, Overvalued between 24.39 and 30.46, and Strongly Overvalued above 30.46. The current Forward EV/EBITDA of 20.14 falls within the Historic Trend Line -Fairly Valued range.

32.89

EV/EBIT

Ligand Pharmaceuticals Inc. (LGND) has a current EV/EBIT of 32.89. The 5-year average EV/EBIT is -87.73. The thresholds are as follows: Strongly Undervalued below -704.20, Undervalued between -704.20 and -395.97, Fairly Valued between 220.50 and -395.97, Overvalued between 220.50 and 528.74, and Strongly Overvalued above 528.74. The current Forward EV/EBIT of 32.89 falls within the Historic Trend Line -Fairly Valued range.

15.38

Ligand Pharmaceuticals Inc. (LGND) has a current PS of 15.38. The 5-year average PS is 10.77. The thresholds are as follows: Strongly Undervalued below 6.65, Undervalued between 6.65 and 8.71, Fairly Valued between 12.82 and 8.71, Overvalued between 12.82 and 14.88, and Strongly Overvalued above 14.88. The current Forward PS of 15.38 falls within the Strongly Overvalued range.

24.10

P/OCF

Ligand Pharmaceuticals Inc. (LGND) has a current P/OCF of 24.10. The 5-year average P/OCF is 11.01. The thresholds are as follows: Strongly Undervalued below -6.88, Undervalued between -6.88 and 2.07, Fairly Valued between 19.95 and 2.07, Overvalued between 19.95 and 28.89, and Strongly Overvalued above 28.89. The current Forward P/OCF of 24.10 falls within the Overvalued range.

42.08

P/FCF

Ligand Pharmaceuticals Inc. (LGND) has a current P/FCF of 42.08. The 5-year average P/FCF is 7.78. The thresholds are as follows: Strongly Undervalued below -250.35, Undervalued between -250.35 and -121.29, Fairly Valued between 136.84 and -121.29, Overvalued between 136.84 and 265.90, and Strongly Overvalued above 265.90. The current Forward P/FCF of 42.08 falls within the Historic Trend Line -Fairly Valued range.

Ligand Pharmaceuticals Inc (LGND) has a current Price-to-Book (P/B) ratio of 3.92. Compared to its 3-year average P/B ratio of 2.32 , the current P/B ratio is approximately 68.72% higher. Relative to its 5-year average P/B ratio of 2.40, the current P/B ratio is about 63.39% higher. Ligand Pharmaceuticals Inc (LGND) has a Forward Free Cash Flow (FCF) yield of approximately 0.82%. Compared to its 3-year average FCF yield of 4.83%, the current FCF yield is approximately -82.92% lower. Relative to its 5-year average FCF yield of 4.43% , the current FCF yield is about -81.41% lower.

3.92

P/B

Median3y

2.32

Median5y

2.40

0.82

FCF Yield

Median3y

4.83

Median5y

4.43

Competitors Valuation Multiple

The average P/S ratio for LGND's competitors is 847.26, providing a benchmark for relative valuation. Ligand Pharmaceuticals Inc Corp (LGND) exhibits a P/S ratio of 15.38, which is -98.19% above the industry average. Given its robust revenue growth of 122.85%, this premium appears sustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of LGND increased by 76.90% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 8.57 to 76.14.

The secondary factor is the Revenue Growth, contributed 122.85%to the performance.

Overall, the performance of LGND in the past 1 year is driven by P/E Change. Which is more unsustainable.

122.85%

51.81M → 115.46M

Revenue Growth

-833.89%

-13.84 → 101.57

Margin Expansion

787.94%

8.57 → 76.14

P/E Change

76.90%

107.15 → 189.55

Mkt Cap Growth

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Frequently Asked Questions

Is Ligand Pharmaceuticals Inc (LGND) currently overvalued or undervalued?

What is Ligand Pharmaceuticals Inc (LGND) fair value?

LGND's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average , adjusted by weights. The fair price of Ligand Pharmaceuticals Inc (LGND) is between 2530.31 to 2571.61 according to relative valuation methord.

How does LGND's valuation metrics compare to the industry average?

What is the current P/B ratio for Ligand Pharmaceuticals Inc (LGND) as of Dec 15 2025?

As of Dec 15 2025, Ligand Pharmaceuticals Inc (LGND) has a P/B ratio of 3.92. This indicates that the market values LGND at 3.92 times its book value.

What is the current FCF Yield for Ligand Pharmaceuticals Inc (LGND) as of Dec 15 2025?

As of Dec 15 2025, Ligand Pharmaceuticals Inc (LGND) has a FCF Yield of 0.82%. This means that for every dollar of Ligand Pharmaceuticals Inc’s market capitalization, the company generates 0.82 cents in free cash flow.

What is the current Forward P/E ratio for Ligand Pharmaceuticals Inc (LGND) as of Dec 15 2025?

As of Dec 15 2025, Ligand Pharmaceuticals Inc (LGND) has a Forward P/E ratio of 33.49. This means the market is willing to pay $33.49 for every dollar of Ligand Pharmaceuticals Inc’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for Ligand Pharmaceuticals Inc (LGND) as of Dec 15 2025?

As of Dec 15 2025, Ligand Pharmaceuticals Inc (LGND) has a Forward P/S ratio of 15.38. This means the market is valuing LGND at $15.38 for every dollar of expected revenue over the next 12 months.

LGND Valuation