Has Ligand Pharmaceuticals (LGND) Run Too Far After Its 59% One-Year Share Price Surge?

Simply Wall St.02-13

If you are wondering whether Ligand Pharmaceuticals at around US$181.65 is still offering value or has already run too far, you are not alone. The stock has seen a 59.4% return over the past year and ...

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The stock has seen a 59.4% return over the past year and ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/pharmaceuticals-biotech/nasdaq-lgnd/ligand-pharmaceuticals/news/has-ligand-pharmaceuticals-lgnd-run-too-far-after-its-59-one\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Has Ligand Pharmaceuticals (LGND) Run Too Far After Its 59% One-Year Share Price Surge?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nHas Ligand Pharmaceuticals (LGND) Run Too Far After Its 59% One-Year Share Price Surge?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-02-13 12:56 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/us/pharmaceuticals-biotech/nasdaq-lgnd/ligand-pharmaceuticals/news/has-ligand-pharmaceuticals-lgnd-run-too-far-after-its-59-one><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>If you are wondering whether Ligand Pharmaceuticals at around US$181.65 is still offering value or has already run too far, you are not alone. The stock has seen a 59.4% return over the past year and ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/pharmaceuticals-biotech/nasdaq-lgnd/ligand-pharmaceuticals/news/has-ligand-pharmaceuticals-lgnd-run-too-far-after-its-59-one\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"IE0009354923.USD","symbol_name":"JANUS HENDERSON US VENTURE \"A2\" (USD) ACC","start_time":0,"source_url":"https://simplywall.st/stocks/us/pharmaceuticals-biotech/nasdaq-lgnd/ligand-pharmaceuticals/news/has-ligand-pharmaceuticals-lgnd-run-too-far-after-its-59-one","article_id":"2611418126","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/6111000-choice1-main-header/1585186710114"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/us/pharmaceuticals-biotech/nasdaq-lgnd/ligand-pharmaceuticals/news/has-ligand-pharmaceuticals-lgnd-run-too-far-after-its-59-one","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2611418126","pubTimestamp":1770958600,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"If you are wondering whether Ligand Pharmaceuticals at around US$181.65 is still offering value or has already run too far, you are not alone.\nThe stock has seen a 59.4% return over the past year and 154.1% over three years, even though the last week and month showed 5.2% and 3.8% declines and year to date it is down 4.5%.\nRecent coverage has focused on Ligand's role as a platform company in pharmaceuticals and biotech partnerships, with attention on how its portfolio of royalty streams and...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"IE0009354923.USD":"JANUS HENDERSON US VENTURE \"A2\" (USD) ACC","DCF":"Dreyfus Alcentra Global Credit Income 2024 Target Term Fund, Inc","LGND":"Ligand Pharmaceuticals Inc.","BK4139":"生物科技","LU0566484027.USD":"安本美国小盘成长股","BK4007":"制药","LU1559883803.SGD":"Aberdeen Standard SICAV I - North American Smaller Companies Fund A Acc SGD-H"},"translate_title":"Ligand Pharmaceuticals(LGND)股价一年内飙升59%后是否走得太远了？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"DCF":1,"LGND":1.5},"content_text":"If you are wondering whether Ligand Pharmaceuticals at around US$181.65 is still offering value or has already run too far, you are not alone. The stock has seen a 59.4% return over the past year and 154.1% over three years, even though the last week and month showed 5.2% and 3.8% declines and year to date it is down 4.5%. Recent coverage has focused on Ligand's role as a platform company in pharmaceuticals and biotech partnerships, with attention on how its portfolio of royalty streams and licensing deals may influence investor sentiment. This context helps explain why the share price reaction has not just been about short term trading, but also about how the market interprets the durability of those underlying assets. On our checks, Ligand scores a 3 out of 6 valuation score, suggesting that some metrics hint at undervaluation while others look more balanced. Next, we will walk through the different valuation approaches before finishing with a way to think about value that goes beyond the usual ratios.  Ligand Pharmaceuticals delivered 59.4% returns over the last year. See how this stacks up to the rest of the Pharmaceuticals industry. AdvertisementApproach 1: Ligand Pharmaceuticals Discounted Cash Flow (DCF) Analysis A DCF model estimates what a company might be worth by projecting its future cash flows and then discounting those back to today’s dollars. It is essentially asking what all those future cash flows are worth right now. For Ligand Pharmaceuticals, the latest twelve month free cash flow is about $28.35 million. Based on analyst inputs for the next few years and then extrapolations out to 2035, projected free cash flow rises to $204.78 million in 2030, with interim estimates such as $121.97 million in 2026 and $164.83 million in 2029. All of these are in US$, and the model used here is a 2 Stage Free Cash Flow to Equity framework. Adding up and discounting these projected cash flows gives an estimated intrinsic value of about $310.19 per share. Compared with a current share price around $181.65, the model indicates an implied discount of roughly 41.4%, which suggests the stock screens as undervalued on this cash flow view. Result: UNDERVALUED Our Discounted Cash Flow (DCF) analysis suggests Ligand Pharmaceuticals is undervalued by 41.4%. Track this in your watchlist or portfolio, or discover 55 more high quality undervalued stocks. LGND Discounted Cash Flow as at Feb 2026 Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Ligand Pharmaceuticals. Approach 2: Ligand Pharmaceuticals Price vs Earnings For profitable companies, the P/E ratio is a useful way to see how much investors are paying for each dollar of earnings. It links the share price directly to the bottom line, which is usually what ultimately matters to shareholders. What counts as a normal P/E really depends on how the market views a company’s growth prospects and risk. Higher expected growth or lower perceived risk can support a higher multiple, while slower growth or higher uncertainty usually call for a lower one. Ligand Pharmaceuticals currently trades on a P/E of about 73.59x. That sits well above the Pharmaceuticals industry average of roughly 20.89x and above the peer group average of about 23.28x. Simply Wall St’s Fair Ratio for Ligand, which is 21.15x, is a proprietary estimate of what a more appropriate P/E might be given the company’s earnings growth profile, industry, profit margins, market cap and risk factors. This Fair Ratio can be more useful than a straight comparison with peers or the industry, because it adjusts for company specific traits rather than assuming all businesses deserve similar multiples. When you set the current 73.59x P/E against the 21.15x Fair Ratio, the shares appear expensive on this earnings based view. Result: OVERVALUED NasdaqGM:LGND P/E Ratio as at Feb 2026 P/E ratios tell one story, but what if the real opportunity lies elsewhere? Start investing in legacies, not executives. Discover our 23 top founder-led companies. Upgrade Your Decision Making: Choose your Ligand Pharmaceuticals Narrative Earlier we mentioned that there is an even better way to understand valuation, so let us introduce you to Narratives, a simple tool on Simply Wall St’s Community page that lets you spell out your story for Ligand Pharmaceuticals by linking your assumptions about future revenue, earnings and margins to a financial forecast and fair value. You can then compare that fair value to today’s price to decide if the stock looks attractive or stretched, and have that view update automatically as new news or earnings arrive. One investor might build a Narrative that leans closer to the higher US$234 price target and another might anchor around the lower US$155 target, yet both can clearly see how their different expectations and risk views translate into different fair values and decisions. Do you think there's more to the story for Ligand Pharmaceuticals? Head over to our Community to see what others are saying! NasdaqGM:LGND 1-Year Stock Price Chart  This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.New: AI Stock Screener & AlertsOur new AI Stock Screener scans the market every day to uncover opportunities.• Dividend Powerhouses (3%+ Yield)• Undervalued Small Caps with Insider Buying• High growth Tech and AI CompaniesOr build your own from over 50 metrics.Explore Now for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. 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