Latest Ratios: P/E Ratio 52.3x · EV/EBITDA 82.7x · ROE 13.5%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $6.4B | $3.8B | $2.0B | $1.3B | $1.1B | $2.7B | $1.6B | $2.1B | $3.3B | $3.2B | $2.1B |
| Enterprise Value | $6.7B | $4.1B | $1.9B | $1.3B | $1.2B | $3.0B | $2.0B | $2.6B | $3.2B | $3.2B | $2.2B |
| P/E Ratio → | 52.27 | 30.84 | — | 24.29 | — | 46.25 | — | 3.27 | 22.77 | 258.36 | — |
| P/S Ratio | 23.95 | 14.31 | 11.73 | 9.66 | 5.74 | 11.03 | 9.84 | 17.13 | 12.99 | 22.79 | 19.42 |
| P/B Ratio | 6.39 | 3.77 | 2.36 | 1.81 | 1.89 | 3.24 | 2.27 | 2.69 | 5.82 | 7.68 | 5.71 |
| P/FCF | 131.30 | 78.45 | 25.32 | — | 9.40 | 38.03 | 32.11 | — | 17.93 | 37.21 | 61.04 |
| P/OCF | 130.10 | 77.74 | 20.19 | 25.58 | 8.17 | 33.81 | 29.49 | — | 16.83 | 34.36 | 33.60 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 15.34 | 11.34 | 9.53 | 5.96 | 12.29 | 12.34 | 21.94 | 12.66 | 22.95 | 20.08 |
| EV / EBITDA | 82.72 | 50.80 | 149.97 | 25.82 | 25.19 | 19.18 | 30.83 | 3.10 | 17.65 | 40.18 | 39.67 |
| EV / EBIT | 141.91 | 25.88 | 341.06 | 19.46 | 30.93 | 32.33 | 70.31 | 3.17 | 14.37 | 47.18 | 105.21 |
| EV / FCF | — | 84.11 | 24.48 | — | 9.75 | 42.39 | 40.26 | — | 17.48 | 37.47 | 63.11 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 97.5% | 97.5% | 93.4% | 73.3% | 73.1% | 74.3% | 81.4% | 90.6% | 97.5% | 96.2% | 94.9% |
| Operating Margin | 17.6% | 17.6% | -13.5% | 9.1% | 1.5% | 43.0% | 22.9% | 671.0% | 65.1% | 48.2% | 40.3% |
| Net Profit Margin | 46.4% | 46.4% | -2.4% | 39.7% | -17.0% | 23.7% | -1.8% | 523.2% | 57.0% | 8.9% | -1.5% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 13.5% | 13.5% | -0.5% | 8.0% | -4.7% | 7.5% | -0.4% | 94.8% | 29.3% | 3.2% | -0.5% |
| ROA | 9.9% | 9.9% | -0.5% | 6.7% | -3.2% | 4.3% | -0.2% | 45.7% | 14.8% | 2.0% | -0.3% |
| ROIC | 3.4% | 3.4% | -2.3% | 1.4% | 0.3% | 6.9% | 2.3% | 66.3% | 26.7% | 11.5% | 8.8% |
| ROCE | 3.9% | 3.9% | -2.7% | 1.7% | 0.3% | 8.2% | 2.7% | 60.8% | 20.3% | 16.9% | 9.9% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.44 | 0.44 | 0.01 | 0.01 | 0.15 | 0.40 | 0.64 | 0.85 | 1.13 | 0.54 | 0.57 |
| Debt / EBITDA | 5.58 | 5.58 | 0.56 | 0.13 | 1.89 | 2.10 | 6.97 | 0.76 | 3.53 | 2.79 | 3.86 |
| Net Debt / Equity | — | 0.27 | -0.08 | -0.02 | 0.07 | 0.37 | 0.58 | 0.75 | -0.15 | 0.05 | 0.19 |
| Net Debt / EBITDA | 3.42 | 3.42 | -5.16 | -0.35 | 0.92 | 1.97 | 6.24 | 0.68 | -0.45 | 0.28 | 1.30 |
| Debt / FCF | — | 5.65 | -0.84 | — | 0.36 | 4.35 | 8.16 | — | -0.45 | 0.26 | 2.07 |
| Interest Coverage | — | — | 1.83 | 98.04 | 21.02 | 4.68 | 1.05 | 23.29 | 4.59 | 6.02 | 1.71 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 22.23 | 22.23 | 8.93 | 14.15 | 2.67 | 11.15 | 5.00 | 66.09 | 10.58 | 0.99 | 0.72 |
| Quick Ratio | 21.98 | 21.98 | 8.55 | 12.72 | 2.53 | 10.50 | 4.74 | 65.66 | 10.50 | 0.97 | 0.71 |
| Cash Ratio | 19.59 | 19.59 | 6.90 | 10.15 | 2.14 | 8.19 | 4.11 | 62.93 | 9.30 | 0.84 | 0.62 |
| Asset Turnover | — | 0.17 | 0.18 | 0.17 | 0.26 | 0.19 | 0.12 | 0.08 | 0.20 | 0.21 | 0.18 |
| Inventory Turnover | 0.72 | 0.72 | 0.78 | 1.46 | 3.97 | 2.28 | 1.15 | 1.56 | 0.89 | 1.23 | 2.90 |
| Days Sales Outstanding | — | 83.12 | 92.70 | 109.27 | 65.17 | 138.49 | 131.81 | 126.69 | 81.07 | 66.21 | 61.02 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 1.9% | 3.2% | — | 4.1% | — | 2.2% | — | 30.5% | 4.4% | 0.4% | — |
| FCF Yield | 0.8% | 1.3% | 3.9% | — | 10.6% | 2.6% | 3.1% | — | 5.6% | 2.7% | 1.6% |
| Buyback Yield | 0.2% | 0.4% | 0.0% | 0.0% | 0.7% | 0.7% | 4.8% | 22.0% | 3.8% | 0.1% | 0.2% |
| Total Shareholder Yield | 0.2% | 0.4% | 0.0% | 0.0% | 0.7% | 0.7% | 4.8% | 22.0% | 3.8% | 0.1% | 0.2% |
| Shares Outstanding | — | $20M | $18M | $18M | $17M | $17M | $16M | $20M | $24M | $23M | $21M |
High Revenue Concentration Volatility
Based on recent financial filings, LGND trades at a forward P/E of 33.52, a multiple that appears to price in significant future growth despite the inherent volatility of milestone-driven revenue streams that often obscure the company's underlying earnings power relative to its historical trading range.
The current valuation multiples, including an EV/EBITDA of 78.55, suggest that the market is assigning a premium to the company's royalty-based business model. Investors should monitor whether this valuation is sustainable given the lumpy nature of milestone payments and the potential for future revenue concentration risks to compress margins.
As reported in financial statements, LGND's ROIC has struggled to maintain positive momentum, fluctuating between -3.6% and 4.1% over the last ten quarters, which suggests that recent inorganic growth strategies have yet to yield the expected returns on invested capital for shareholders.
The inconsistent ROIC trend indicates that the company is currently in a phase of capital deployment where the cost of acquiring new royalty streams may be outpacing the immediate cash returns. This warrants further investigation into whether management's acquisition strategy is effectively compounding value or merely replacing aging assets.
According to quarterly data, the company's cash conversion cycle has exhibited extreme swings, ranging from -289 to 1352 days, reflecting the unpredictable timing of partner payments and the lumpy nature of Captisol material sales that characterize the firm's operational efficiency.
The wide variance in the cash conversion cycle suggests that LGND lacks a stable working capital rhythm, which may complicate cash flow forecasting. This inefficiency appears structural, driven by the reliance on milestone-based contracts rather than consistent, high-volume product sales.
Based on reported figures, LGND's debt-to-EBITDA ratio has climbed to 26.02 in 2026Q1, a significant increase from historical levels that indicates a shift toward debt-funded inorganic growth and a potentially more constrained balance sheet profile for future capital allocation.
While the company maintains a high current ratio, the rising debt load suggests that interest coverage may become a point of concern if royalty streams from key assets underperform. Investors should monitor the company's ability to service this debt without compromising its capacity to pursue further strategic acquisitions.
As indicated in financial disclosures, the P/E ratio is a fundamentally flawed metric for LGND, as it fails to account for the significant non-cash amortization of acquired intangible assets and the extreme volatility of milestone-driven earnings that distort the company's true economic profitability.
Analysts should prioritize EV/EBITDA or cash flow-based metrics to better capture the recurring nature of the royalty business. Relying on P/E ratios likely leads to an inaccurate assessment of the company's valuation, as it ignores the underlying cash-generating capacity of the Captisol platform.
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying LGND stock.
Ligand Pharmaceuticals Incorporated's current P/E ratio is 52.3x. The historical average is 35.2x. This places it at the 80th percentile of its historical range.
Ligand Pharmaceuticals Incorporated's current EV/EBITDA is 82.7x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 37.0x.
Ligand Pharmaceuticals Incorporated's return on equity (ROE) is 13.5%. The historical average is -33.4%.
Based on historical data, Ligand Pharmaceuticals Incorporated is trading at a P/E of 52.3x. This is at the 80th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Ligand Pharmaceuticals Incorporated has 97.5% gross margin and 17.6% operating margin. Operating margin between 10-20% is typical for established companies.
Ligand Pharmaceuticals Incorporated's Debt/EBITDA ratio is 5.6x, indicating high leverage. A ratio above 4x may signal elevated financial risk.