1Wk·

Eli Lilly / Novo

$LLY (+2.83%) 623.1 billion € (64.41 P/E)

$NOVO B (-0.7%) 193.2 billion € (18.81 P/E)

$LLY (+2.83%) Profit

2021: € 6.3 billion (+2.78%)

2022: € 6.8 billion (-3.37%)

2023: € 5.3 billion (-20.51%)

2024: € 10.9 billion (+105.63%)

$NOVO B (-0.7%) Profit

2021: € 6.4 billion (+13.34%)

2022: € 7.5 billion (+16.27%)

2023: € 11.2 billion (+50.71%)

2024: € 13.5 billion (+20.68%)

I'm not that deep in the pharma scene so can someone explain to me why $LLY (+2.83%) is worth 3x as much as $NOVO B (-0.7%) although the growth is weaker?

12 Comments

TotallyLost@TotallyLost

1Wk

Because more than 1/3 of US equity returns over the last 10 years cannot be explained by earnings growth. Which means that companies have become more and more expensive compared to their international peers.

If this trend reverses, US stocks can lose 30% without any change in earnings expectations.

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KleinAnleger1@KleinAnleger1

1Wk

Novo Nordisk is simply not so diversified and therefore, at least in the public eye, only has the sales injection as a growth driver...

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Marcus@Helleone

1Wk

@KleinAnleger1 Well, they are also very well positioned with their diabetes products. This market will continue to grow extremely over the next few years. In terms of margins, I think Novo Nordisk is massively undervalued

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Mark777@Mark777

1Wk

@Helleone That's how it is.

You could cynically say: $KO and $MCD together with $NOVO B or $LLY in the portfolio is a sure-fire success😬

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Marcus@Helleone

1Wk

@Mark777 have Pepsi, I already had that thought too 😄

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Epi@Epi

1Wk

The past doesn't count for much on the stock market. Add the sales expectations for the next 5 years! 😁

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Memo0606@Memo0606

1Wk

@Epi you think novo will not perform in the future?

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Epi@Epi

1Wk

@Memo0606 No, I think the explanation for the current valuation differences lies in the future prospects.

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Memo0606@Memo0606

1Wk

@Epi I see... many think it will come back but you don't
that's the beauty of the community many opinions

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Epi@Epi

1Wk

@Memo0606 I don't actually have an opinion on Novo.
I only have an opinion on the opinions here in the forum. Unfortunately, many people don't understand that. 🤷

They don't have to. As long as there are lots of opinions here that I can have an opinion on. 😅

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Maxi V.@Maxi_von_Zehmen

1Wk

The current reactions feel like a startled flock of chickens...if Novo reports something good again, the game will be the other way around. The savings plan on NOVO runs and runs and runs.

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market_expert_gbtws@market_expert_gbtws

1Wk

Still a strong buy! One of the top companies and at what is now an outstanding price!

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