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 Fair zone, suggesting that its current forward PE ratio of 16.15 is considered Fairly compared with the five-year average of 14.03. The fair price of Amgen Inc (AMGN) is between 315.82 to 352.39 according to relative valuation methord.
Relative Value
Fair Zone
315.82-352.39
Current Price：340.16
Fair
16.15
PE
1Y
3Y
5Y
Trailing
Forward
10.86
EV/EBITDA
Amgen Inc. (AMGN) has a current EV/EBITDA of 10.86. The 5-year average EV/EBITDA is 10.18. The thresholds are as follows: Strongly Undervalued below 8.35, Undervalued between 8.35 and 9.26, Fairly Valued between 11.10 and 9.26, Overvalued between 11.10 and 12.01, and Strongly Overvalued above 12.01. The current Forward EV/EBITDA of 10.86 falls within the Historic Trend Line -Fairly Valued range.
15.08
EV/EBIT
Amgen Inc. (AMGN) has a current EV/EBIT of 15.08. The 5-year average EV/EBIT is 12.82. The thresholds are as follows: Strongly Undervalued below 10.67, Undervalued between 10.67 and 11.75, Fairly Valued between 13.90 and 11.75, Overvalued between 13.90 and 14.97, and Strongly Overvalued above 14.97. The current Forward EV/EBIT of 15.08 falls within the Strongly Overvalued range.
5.05
PS
Amgen Inc. (AMGN) has a current PS of 5.05. The 5-year average PS is 4.77. The thresholds are as follows: Strongly Undervalued below 3.98, Undervalued between 3.98 and 4.37, Fairly Valued between 5.16 and 4.37, Overvalued between 5.16 and 5.56, and Strongly Overvalued above 5.56. The current Forward PS of 5.05 falls within the Historic Trend Line -Fairly Valued range.
15.10
P/OCF
Amgen Inc. (AMGN) has a current P/OCF of 15.10. The 5-year average P/OCF is 12.51. The thresholds are as follows: Strongly Undervalued below 9.59, Undervalued between 9.59 and 11.05, Fairly Valued between 13.97 and 11.05, Overvalued between 13.97 and 15.43, and Strongly Overvalued above 15.43. The current Forward P/OCF of 15.10 falls within the Overvalued range.
14.60
P/FCF
Amgen Inc. (AMGN) has a current P/FCF of 14.60. The 5-year average P/FCF is 13.02. The thresholds are as follows: Strongly Undervalued below 9.23, Undervalued between 9.23 and 11.12, Fairly Valued between 14.92 and 11.12, Overvalued between 14.92 and 16.81, and Strongly Overvalued above 16.81. The current Forward P/FCF of 14.60 falls within the Historic Trend Line -Fairly Valued range.
Amgen Inc (AMGN) has a current Price-to-Book (P/B) ratio of 19.04. Compared to its 3-year average P/B ratio of 25.18 , the current P/B ratio is approximately -24.37% higher. Relative to its 5-year average P/B ratio of 30.44, the current P/B ratio is about -37.45% higher. Amgen Inc (AMGN) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 5.75%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 6.14% , the current FCF yield is about -100.00% lower.
19.04
P/B
Median3y
25.18
Median5y
30.44
6.20
FCF Yield
Median3y
5.75
Median5y
6.14
Competitors Valuation Multiple
The average P/S ratio for AMGN's competitors is 9.97, providing a benchmark for relative valuation. Amgen Inc Corp (AMGN) exhibits a P/S ratio of , which is -100.00% above the industry average. Given its robust revenue growth of 12.40%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of AMGN increased by 31.56% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 22.28 to 26.30.
The secondary factor is the Revenue Growth, contributed 12.40%to the performance.
Overall, the performance of AMGN in the past 1 year is driven by P/E Change. Which is more unsustainable.
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