AMGN Valuation

Amgen Inc

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296.300

-2.13(-0.714%)1D

AMGN Relative Valuation

AMGN's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, AMGN is overvalued; if below, it's undervalued.

Historical Valuation

Amgen Inc (AMGN) is now in the Undervalued zone, suggesting that its current forward PE ratio of 14.53 is considered Undervalued compared with the five-year average of 14.00. The fair price of Amgen Inc (AMGN) is between 296.45 to 330.61 according to relative valuation methord. Compared to the current price of 293.07 USD , Amgen Inc is Undervalued By 1.14%.

Relative Value

Fair Zone

296.45-330.61

Current Price：293.07

1.14%

Undervalued

14.43

Trailing

Forward

9.57

EV/EBITDA

Amgen Inc. (AMGN) has a current EV/EBITDA of 9.57. The 5-year average EV/EBITDA is 10.18. The thresholds are as follows: Strongly Undervalued below 8.34, Undervalued between 8.34 and 9.26, Fairly Valued between 11.10 and 9.26, Overvalued between 11.10 and 12.02, and Strongly Overvalued above 12.02. The current Forward EV/EBITDA of 9.57 falls within the Historic Trend Line -Fairly Valued range.

13.73

EV/EBIT

Amgen Inc. (AMGN) has a current EV/EBIT of 13.73. The 5-year average EV/EBIT is 12.78. The thresholds are as follows: Strongly Undervalued below 10.68, Undervalued between 10.68 and 11.73, Fairly Valued between 13.83 and 11.73, Overvalued between 13.83 and 14.88, and Strongly Overvalued above 14.88. The current Forward EV/EBIT of 13.73 falls within the Historic Trend Line -Fairly Valued range.

296.30

Amgen Inc. (AMGN) has a current PS of 296.30. The 5-year average PS is 6.18. The thresholds are as follows: Strongly Undervalued below -33.98, Undervalued between -33.98 and -13.90, Fairly Valued between 26.26 and -13.90, Overvalued between 26.26 and 46.34, and Strongly Overvalued above 46.34. The current Forward PS of 296.30 falls within the Strongly Overvalued range.

15.02

P/OCF

Amgen Inc. (AMGN) has a current P/OCF of 15.02. The 5-year average P/OCF is 12.47. The thresholds are as follows: Strongly Undervalued below 9.57, Undervalued between 9.57 and 11.02, Fairly Valued between 13.92 and 11.02, Overvalued between 13.92 and 15.37, and Strongly Overvalued above 15.37. The current Forward P/OCF of 15.02 falls within the Overvalued range.

12.71

P/FCF

Amgen Inc. (AMGN) has a current P/FCF of 12.71. The 5-year average P/FCF is 13.00. The thresholds are as follows: Strongly Undervalued below 9.20, Undervalued between 9.20 and 11.10, Fairly Valued between 14.91 and 11.10, Overvalued between 14.91 and 16.81, and Strongly Overvalued above 16.81. The current Forward P/FCF of 12.71 falls within the Historic Trend Line -Fairly Valued range.

Amgen Inc (AMGN) has a current Price-to-Book (P/B) ratio of 21.63. Compared to its 3-year average P/B ratio of 25.95 , the current P/B ratio is approximately -16.65% higher. Relative to its 5-year average P/B ratio of 30.43, the current P/B ratio is about -28.94% higher. Amgen Inc (AMGN) has a Forward Free Cash Flow (FCF) yield of approximately 6.60%. Compared to its 3-year average FCF yield of 5.68%, the current FCF yield is approximately 16.19% lower. Relative to its 5-year average FCF yield of 6.12% , the current FCF yield is about 7.78% lower.

21.47

P/B

Median3y

25.95

Median5y

30.43

0.06

FCF Yield

Median3y

5.68

Median5y

6.12

Competitors Valuation Multiple

The average P/S ratio for AMGN's competitors is 261.09, providing a benchmark for relative valuation. Amgen Inc Corp (AMGN) exhibits a P/S ratio of 296.30, which is 13.48% above the industry average. Given its robust revenue growth of 9.43%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of AMGN increased by 6.44% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 8.89 to 15.60.

The secondary factor is the Revenue Growth, contributed 9.43%to the performance.

Overall, the performance of AMGN in the past 1 year is driven by Margin Expansion. Which is more sustainable.

9.43%

8.39B → 9.18B

Revenue Growth

75.48%

8.89 → 15.60

Margin Expansion

-78.47%

112.53 → 24.23

P/E Change

6.44%