NASDAQ
AMGN
Last Price
US $415.21
KEY FIGURES
MKT CAP
$224.1B
EPS
TTM
$16.19
PEG
TTM
0.80x
P/E
TTM
25.64x
P/S
TTM
5.88x
YIELD
2.36%
GROWTH
Revenue Y/Y
Profit margin
Current Ratio
Capital Returns
89.32%
Return on equity
ROIC: 14.22%
Valuation History
25.3X
Price to Earnings
EV/EBITDA: 16.1X
Cash flow
Profit margin
7.64%
(FY vs FY)
EBITDA Y/Y
5.39%
(FY vs FY)
Cash flow Y/Y
-3.91%
(FY vs FY)
Cash Flow (DCF)
Fair Value
Market $415.21
-84.57%
Default assumptions
EBITDA Multiple
Fair Value
Market $415.21
-70.77%
Default assumptions
Base valuations use default assumptions. Customize in the Valuator.
Valuation
Financial
Performance
Financial risk - Cash flow debt coverage.
Amgen Inc. cash flow to debt ratio of 18.24% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.
Financial risk - Healthy cash flow growth.
Amgen Inc.'s free cash flow has decreased -22.07% from $10.39G last year to $8.10G, signaling decreasing performance
Financial risk - Healthy debt to equity ratio.
Amgen Inc.'s debt to equity ratio is 4.90, which means that the company's assets are unhealthy financed, signaling financial risk. READ MORE: A ratio over 0.60 means the company finances its assets with debt, signaling financial risk. If ratio is negative, the company spent its own equity and risks bankruptcy
Financial stability - Healthy debt to equity ratio development.
Amgen Inc.'s debt has decreased relative to shareholder equity from 10.23 last year to 4.90 today, signaling strengthened financials
Financial stability - Net debt/EBITDA.
Amgen Inc. has a net debt to EBITDA ratio of 2.69x, which is below the 3.00x threshold, indicating healthy leverage and financial stability
Financial stability - ICR.
Amgen Inc.'s interest coverage ratio of 4.74 indicates that earnings with good margin can cover interest payments on company debt
Financial stability - Profit margin growth.
Amgen Inc.'s profit margin has increased (87.41%) in the last year from 12.24% to 22.93%, signaling increasing performance
Financial stability - Short term assets vs short term liabilities.
Amgen Inc.'s short-term assets of $29.06G exceed its short-term liabilities of $25.49G
Increasing performance - ROA.
Amgen Inc.'s return on assets of 9.14% is higher than the 5.00% threshold, indicating efficient asset utilization
Increasing performance - Absolute return on equity.
Amgen Inc.'s return on equity of 89.32%, is higher than 15.00%, indicating good performance
Increasing performance - Earnings quality.
Amgen Inc.'s operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation
Increasing performance - Earnings stability.
Amgen Inc. had positive net income in 5.00 out of 5 years, indicating stable and consistent earnings
Increasing performance - Free cash flow.
Amgen Inc. has positive free cash flow, indicating the company generates cash after capital expenditures
Increasing performance - FCF yield.
Amgen Inc. has a free cash flow yield of 3.61%, which is above the 2.00% threshold, indicating strong cash generation relative to market value
Increasing performance - Healthy earnings growth.
Amgen Inc.'s yearly earnings has increased 88.53% since last year from $4.09G to $7.71G, signaling increasing performance
Increasing performance - Healthy revenue growth.
Amgen Inc.'s yearly revenue has increased 9.95% since last year from $33.42G to $36.75G, signaling increasing performance
Increasing performance - ROIC.
ROIC 14.22% (Source: FMP key-metrics). At or above the 10% threshold. Score: 2 of 2. The company is generating returns above the upper end of the typical US weighted-average cost of capital range under this definition of invested capital.
Increasing performance - 3-year revenue CAGR.
Amgen Inc.'s 3-year revenue CAGR of 11.76% is positive, indicating growing revenue over the past 3 years
Increasing performance - Revenue consistency.
Amgen Inc. had revenue growth in 5.00 out of 5 years, indicating consistent revenue performance
Increasing performance - ROE consistency.
Amgen Inc. had positive ROE in 5.00 out of 5 years, indicating consistent and reliable returns on equity
Overvalued - DCF valuation.
Amgen Inc. is overvalued relative to its fair value price of 64.08 based on Discounted Cash Flow model
Overvalued - Earnings yield.
Amgen Inc. has an earnings yield of 3.90%, which is below the 4.00% threshold, indicating the stock may be expensive relative to its earnings
Overvalued - EBITDA valuation.
Amgen Inc. is overvalued relative to its fair value price of 121.37 based on EBITDA multiple model
Undervalued - EV/EBITDA.
Amgen Inc. has an EV/EBITDA ratio of 15.95x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings
Undervalued - PEG ratio value.
Amgen Inc. has a PEG-ratio under 1 which is considered undervalued
Overvalued - P/B ratio.
Amgen Inc. has a price-to-book ratio of 19.18x, which exceeds the 5.00x threshold, indicating the stock may be overvalued relative to its book value
Undervalued - P/S ratio.
Amgen Inc. has a price-to-sales ratio of 5.88x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue