Ligand Pharmaceuticals LGND
United StatesHealthcare · BiotechnologyUSD
344.25 USD (+17.4%)
12 analysts
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Ligand Pharmaceuticals is a biopharmaceutical company that generates recurring revenue through royalties and licenses on a diversified portfolio of drugs and technologies developed by third parties.
Key points
from its scores- ✓Strong growth9.6
- ✓Good share-price trend8.9
- ✓Very solid balance sheet7.9
- ✕Little or no dividend1.5
- ✕Demanding valuation3.5
AI analysis
bottom line, main risk, context and newsStrong growth and financial solidity justify the premium, but the demanding valuation and low ROIC limit near-term upside potential.
Ligand shows explosive growth (earnings +825%, revenue +33.7%) with a solid balance sheet (net cash, 31.18x liquidity) and high profitability (ROE 21.96%), although its valuation is demanding (P/E 30.9x, EV/EBITDA 42.25x) and ROIC is low (1.87%).
Dependence on a small number of licensed drugs for the majority of royalty revenue, whose commercial success is outside its direct control.
Context and risks
No relevant recent news and no material exposure to current macro factors (rates, oil, tariffs). The pharmaceutical royalty business generates stable cash flow and does not depend on commodities or significant external financing.
Is Ligand Pharmaceuticals stock cheap or expensive?
at the analysis dateOn P/E and EV / EBITDA, it trades 104% above the Healthcare median on average.
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 30.9 | 26.7 | +16% |
| EV / EBITDA | 42.3 | 14.5 | +192% |
| Price / book | 6.0 | 4.1 | +47% |
| Price / sales | 20.1 | 3.4 | +489% |
Sector: median of the 217 Healthcare companies analysed. In bold, the multiples used for the comparison.
Valuation score: 3.5 out of 10 (median for Healthcare: 4.7).
Average analyst target: 344.25 USD, +17.4% versus the price.
A premium can be justified if the company is of higher quality or grows faster than its sector: Quality / Moat 6.3 (sector 5.5), Growth 9.6 (sector 6.6).
Classic formulas with standard assumptions (10.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Healthcare medianValuation
- P/E
- 30.9
- Forward P/E
- 24.5
- EV / EBITDA
- 42.3
- Price / book
- 6.0
- Price / sales
- 20.1
- PEG
- 1.53
- Market cap
- 5.8B USD
- Enterprise value
- 5.6B USD
Profitability
- ROE
- 22.0%
- ROA
- 4.0%
- ROIC (approx.)
- 1.9%
- Gross margin
- 81.2%
- Operating margin
- 13.5%
- Net margin
- 67.9%
- Free cash flow
- 139.7M USD
- FCF yield
- 2.4%
- Cash conversion
- 105%
Solvency
- Total debt
- 1.1B USD
- Net debt
- −226.3M USD
- Cash
- 1.4B USD
- EBITDA
- 133.0M USD
- Net debt / EBITDA
- −1.70
- Debt / equity
- 116.94
- Current ratio
- 31.18
- Quick ratio
- 30.83
Growth
- Revenue growth
- +33.7%
- Earnings growth
- +825.0%
- EPS (TTM)
- 9.49 USD
- EPS (forward)
- 11.95 USD
Dividend
- Dividend yield
- 0.0%
- Payout
- 0.0%
Risk and market
- Beta
- 1.01
- Analyst consensus
- Strong buy (12)
- Target price
- 344.25 USD
- 52-week range
- 175.89 – 326.63
Recent news
All LGND news →Compare it with its sector
All 217 in Healthcare →Frequently asked questions about Ligand Pharmaceuticals
Is Ligand Pharmaceuticals stock cheap or expensive?
On P/E and EV / EBITDA, it trades 104% above the Healthcare median on average. Valuation score: 3.5 out of 10 (median for Healthcare: 4.7). Average analyst target: 344.25 USD, +17.4% versus the price. This is not investment advice.
What score does Ligand Pharmaceuticals get on MeridIAn Screener?
It scores 6.2 out of 10, rank 819 of 2,130 (better than 60% of the companies analysed). Its strongest category is Growth (9.6) and its weakest, Dividend (1.5). Analysis of 08/10/2026.
What is Ligand Pharmaceuticals's P/E ratio?
Its P/E is 30.9: the share price equals 30.9 times earnings per share over the last 12 months. The Healthcare median is 26.7. Based on the earnings analysts expect, the forward P/E is 24.5.
How much is Ligand Pharmaceuticals worth on the stock market?
Its market capitalisation is 5.8B USD and its enterprise value, debt included, is 5.6B USD.
How much debt does Ligand Pharmaceuticals have?
It has more cash than debt: net cash of 226.3M USD.
Does Ligand Pharmaceuticals pay a dividend?
It pays no dividend, or almost none.
How has Ligand Pharmaceuticals stock performed over the last year?
It has risen 65.0% over the last year, excluding dividends. Over the last 52 weeks it has traded between 175.89 and 326.63 USD. Past performance does not guarantee future results.
What do analysts think of Ligand Pharmaceuticals?
12 analysts cover it; their average recommendation is “Strong buy” and their average target is 344.25 USD (+17.4% versus the price). It is an estimate, not market data.