Why Eli Lilly at 70x Earnings Is Wall Street's Biggest Lie

By Prof. Jeffrey Bierman, CMT

Eli Lilly trades at $900 per share with a 70x earnings multiple.

Merck trades at 13x earnings. Pfizer trades at 13x earnings. Abbott Labs trades at 16x earnings. AstraZeneca trades at 31x earnings.

These are all established pharmaceutical companies. Similar business models. Similar product portfolios. Similar market positions. Yet Lilly trades at 70x while every peer sits between 13x and 31x.

Wall Street analysts defend this by claiming Lilly has superior growth prospects. The numbers tell a different story.

Lilly's earnings show typical pharmaceutical lumpiness. Strong quarters followed by average quarters. Nothing that justifies a multiple five times higher than its closest competitor.

This isn't about hating Lilly. This is about recognizing when Wall Street's fuzzy math has pushed a stock so far from reality that reversion becomes inevitable.

Every major crash started with valuations that made no sense but kept climbing anyway. Dot-com. Housing crisis. COVID. The pattern repeats.

Spotting one overvalued stock is easy when you look at the numbers.

Finding all of them before they crash is impossible manually.

The Genesis COG Scanner runs the same peer comparison analysis across 3,000 stocks daily, flagging extreme disconnects like Lilly's 70x multiple versus the sector's 13-16x range.

Click HERE to see how.

Today I'm showing you the five-minute framework that reveals these valuation lies.

First, you'll see exactly why Lilly's numbers don't support its price.

Then you'll learn the methodology to spot these disconnects yourself across any stock.

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Why Eli Lilly at 70x Earnings Is Wall Street's Biggest Lie

Why Eli Lilly at 70x Earnings Is Wall Street's Biggest Lie

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