D/E 0.45 — near the Healthcare debt median (≈60th pctile)
P/E41.0xC+
P/E 41.0 — above the Healthcare median (≈75th pctile)
PEG1.53C+
PEG 1.53 — modest premium; above fair value
Forward price target — the 1-year figure is the analyst consensus where the stock is covered; the 5- and 10-year figures compound our earnings estimate from there. The DCF below is a separate cross-check on intrinsic value (what it's worth today), not another target.
Quality-growth score · 55.4
Quality0.59
Growth0.91
Value0.32
Why this score
Diluting shareholders
Entry · Margin of safety
52-week rangeNear 52-week high
1% off the 12-month high
vs DCF fair value119% aboveest. fair value ~$147
Quality signals · context only
Gross profitability17% · C+gross profit ÷ total assets (Novy-Marx)
ROIC7.3% · C+return on invested capital — not score-weighted
Why now
Biotechnology · market cap $6.5b. Trading near 52-week high of $326.63 — momentum setup, limited technical margin of safety. Revenue growing +60% — in hypergrowth territory. 10 sell-side analysts rate this a Strong Buy with a mean 1-yr target of $297.50 (implying -8% upside).
Moat
Net margin 56% is exceptional — pricing-power territory rare outside premium software, branded staples, and specialty pharma. ROE 15% sits above Buffett's preferred 15% threshold — the equity base is compounding at a rate the market struggles to discount accurately. Pharma moat is patent runway + pipeline depth — a single approved molecule funds the next generation of bets. Late-stage trials carry binary readouts that swing valuation 30%+.
Risk
Trading within 1% of the 52-week high — limited technical margin of safety; a momentum reversal would test conviction. Trailing P/E 41x sits well above the S&P median (~20x) — multiple compression is a real risk if revenue growth decelerates. P/S 23.6x embeds aggressive forward growth — disappointing top-line guidance would compress the multiple hard.
Horizon
1-3 yr $297.50 (10-analyst consensus) — fundamentals + valuation re-rating. 5 yr $435.57 at ~6% CAGR — compounding case rests on the competitive position widening. 10 yr $646.14 if current growth sustains into durable earnings power.
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.
Position sizing · LGND
$
%
%
Shares to buy
6
Position size
$1,936
3.9% of portfolio
Stop price
$241.96
25% below $322.61
$ at risk if stopped
$483.92
budget $500.00 · 1% of portfolio
Math only — share count is floor(portfolio × risk% ÷ (price × stop%)). Doesn't account for commissions, slippage, gap risk, or position-correlation across your book. Inputs persist locally; never sent to the server. Not investment advice.
Ligand Pharmaceuticals Incorporated (LGND) is a Biotechnology company that scores 55.4 out of 100 on the Bull Rankings quality-growth model — a middling reading. The score blends three pillars — quality (durable returns, healthy margins, low leverage), growth (revenue and earnings), and value (valuation versus sector peers) — into one number, refreshed daily; it is a screen, not a buy recommendation.
Its strongest graded signals are Rev (A). On valuation, LGND sits about 119% above our discounted-cash-flow fair value (i.e. the DCF flags it as rich).
Is LGND a good stock to buy?
Bull Rankings scores LGND 55.4 out of 100 on its quality-growth model, which is a middling reading. That is driven by Rev (A). A score is a quantitative screen of Ligand Pharmaceuticals Incorporated's fundamentals, not personalised financial advice — weigh it against your own time horizon and risk tolerance, and read the risk factors below before acting.
Why does LGND score 55.4 on Bull Rankings?
The quality-growth score blends three pillars — quality (returns on capital, margins, leverage, earnings quality), growth (revenue and earnings expansion), and value (valuation versus sector peers). LGND earns its highest marks on Rev (A). Each pillar is graded against sector-aware thresholds, then combined into the single 0–100 score.
Is LGND overvalued or undervalued?
Based on $322.61, LGND sits about 119% above our discounted-cash-flow fair value (i.e. the DCF flags it as rich). It trades at a 41.0x× P/E (graded C+). Discounted-cash-flow estimates are sensitive to growth and discount-rate assumptions, so treat this as a cross-check, not a price target.
What are the main risks of investing in LGND?
Trading within 1% of the 52-week high — limited technical margin of safety; a momentum reversal would test conviction. Trailing P/E 41x sits well above the S&P median (~20x) — multiple compression is a real risk if revenue growth decelerates. P/S 23.6x embeds aggressive forward growth — disappointing top-line guidance would compress the multiple hard.
Bull Rankings is an automated fundamentals screen for research and education. It is not investment advice, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a licensed financial adviser.