AMGN PE Ratio & Valuation,Is AMGN Overvalued

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 15.01 is considered Fairly compared with the five-year average of 14.03. The fair price of Amgen Inc (AMGN) is between 313.79 to 350.56 according to relative valuation methord.

Relative Value

Fair Zone

313.79-350.56

Current Price：317.74

Fair

15.01

10.11

EV/EBITDA

Amgen Inc. (AMGN) has a current EV/EBITDA of 10.11. 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 10.11 falls within the Historic Trend Line -Fairly Valued range.

14.08

EV/EBIT

Amgen Inc. (AMGN) has a current EV/EBIT of 14.08. The 5-year average EV/EBIT is 12.83. The thresholds are as follows: Strongly Undervalued below 10.67, Undervalued between 10.67 and 11.75, Fairly Valued between 13.91 and 11.75, Overvalued between 13.91 and 14.99, and Strongly Overvalued above 14.99. The current Forward EV/EBIT of 14.08 falls within the Overvalued range.

4.65

Amgen Inc. (AMGN) has a current PS of 4.65. The 5-year average PS is 4.76. The thresholds are as follows: Strongly Undervalued below 3.97, Undervalued between 3.97 and 4.37, Fairly Valued between 5.16 and 4.37, Overvalued between 5.16 and 5.55, and Strongly Overvalued above 5.55. The current Forward PS of 4.65 falls within the Historic Trend Line -Fairly Valued range.

13.89

P/OCF

Amgen Inc. (AMGN) has a current P/OCF of 13.89. The 5-year average P/OCF is 12.52. The thresholds are as follows: Strongly Undervalued below 9.59, Undervalued between 9.59 and 11.06, Fairly Valued between 13.99 and 11.06, Overvalued between 13.99 and 15.45, and Strongly Overvalued above 15.45. The current Forward P/OCF of 13.89 falls within the Historic Trend Line -Fairly Valued range.

13.43

P/FCF

Amgen Inc. (AMGN) has a current P/FCF of 13.43. The 5-year average P/FCF is 13.02. The thresholds are as follows: Strongly Undervalued below 9.23, Undervalued between 9.23 and 11.13, Fairly Valued between 14.92 and 11.13, Overvalued between 14.92 and 16.82, and Strongly Overvalued above 16.82. The current Forward P/FCF of 13.43 falls within the Historic Trend Line -Fairly Valued range.

Amgen Inc (AMGN) has a current Price-to-Book (P/B) ratio of 17.79. Compared to its 3-year average P/B ratio of 24.92 , the current P/B ratio is approximately -28.63% higher. Relative to its 5-year average P/B ratio of 30.48, the current P/B ratio is about -41.63% higher. Amgen Inc (AMGN) has a Forward Free Cash Flow (FCF) yield of approximately 6.74%. Compared to its 3-year average FCF yield of 5.76%, the current FCF yield is approximately 17.16% lower. Relative to its 5-year average FCF yield of 6.13% , the current FCF yield is about 10.01% lower.

17.79

P/B

Median3y

24.92

Median5y

30.48

6.74

FCF Yield

Median3y

5.76

Median5y

6.13

Competitors Valuation Multiple

The average P/S ratio for AMGN's competitors is 7.27, providing a benchmark for relative valuation. Amgen Inc Corp (AMGN) exhibits a P/S ratio of 4.65, which is -36.06% above the industry average. Given its robust revenue growth of 12.40%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of AMGN increased by 22.89% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 8.50B to 9.56B.

The secondary factor is the P/E Change, contributed 9.38%to the performance.

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

12.40%

8.50B → 9.56B

Revenue Growth

1.11%

33.28 → 33.65

Margin Expansion

9.38%

22.46 → 24.57

P/E Change

22.89%

258.55 → 317.74

Mkt Cap Growth

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Frequently Asked Questions

Is Amgen Inc (AMGN) currently overvalued or undervalued?

What is Amgen Inc (AMGN) fair value?

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. The fair price of Amgen Inc (AMGN) is between 313.79 to 350.56 according to relative valuation methord.

How does AMGN's valuation metrics compare to the industry average?

What is the current P/B ratio for Amgen Inc (AMGN) as of Dec 15 2025?

As of Dec 15 2025, Amgen Inc (AMGN) has a P/B ratio of 17.79. This indicates that the market values AMGN at 17.79 times its book value.

What is the current FCF Yield for Amgen Inc (AMGN) as of Dec 15 2025?

As of Dec 15 2025, Amgen Inc (AMGN) has a FCF Yield of 6.74%. This means that for every dollar of Amgen Inc’s market capitalization, the company generates 6.74 cents in free cash flow.

What is the current Forward P/E ratio for Amgen Inc (AMGN) as of Dec 15 2025?

As of Dec 15 2025, Amgen Inc (AMGN) has a Forward P/E ratio of 15.01. This means the market is willing to pay $15.01 for every dollar of Amgen Inc’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for Amgen Inc (AMGN) as of Dec 15 2025?

As of Dec 15 2025, Amgen Inc (AMGN) has a Forward P/S ratio of 4.65. This means the market is valuing AMGN at $4.65 for every dollar of expected revenue over the next 12 months.

AMGN Valuation