Amgen Inc.

BVL:AMGN Stock Report

Market Cap: US$157.6b

Amgen Valuation

Is AMGN undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of AMGN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Discounted Cash Flow
Simply Wall St
US$328.23
Fair Value
19.3% undervalued intrinsic discount
26
Number of Analysts

Below Fair Value: AMGN ($264.8) is trading below our estimate of fair value ($328.23)

Significantly Below Fair Value: AMGN is trading below fair value, but not by a significant amount.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for AMGN?

Key metric: As AMGN is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for AMGN. This is calculated by dividing AMGN's market cap by their current earnings.
What is AMGN's PE Ratio?
PE Ratio38.5x
EarningsUS$4.09b
Market CapUS$157.63b

Price to Earnings Ratio vs Peers

How does AMGN's PE Ratio compare to its peers?

The above table shows the PE ratio for AMGN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average34.9x
CSL CSL
31.1x12.8%AU$130.7b
ABBV AbbVie
78.7x25.3%US$341.0b
REGN Regeneron Pharmaceuticals
17.2x10.2%US$77.3b
BIIB Biogen
12.8x10.3%US$20.7b
AMGN Amgen
38.5x15.1%US$157.6b

Price-To-Earnings vs Peers: AMGN is expensive based on its Price-To-Earnings Ratio (38.5x) compared to the peer average (34.9x).

Price to Earnings Ratio vs Industry

How does AMGN's PE Ratio compare vs other companies in the Global Biotechs Industry?

15 CompaniesPrice / EarningsEstimated GrowthMarket Cap
AMGN 38.5xIndustry Avg. 25.5xNo. of Companies20PE020406080100+
15 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: AMGN is expensive based on its Price-To-Earnings Ratio (38.5x) compared to the Global Biotechs industry average (25.5x).

Price to Earnings Ratio vs Fair Ratio

What is AMGN's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

AMGN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio38.5x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate AMGN's Price-To-Earnings Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst AMGN forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$264.80
US$315.97
+19.3%
15.5%US$389.00US$195.00n/a26
Feb ’26US$264.80
US$316.04
+19.4%
16.7%US$405.00US$195.00n/a26
Jan ’26US$264.80
US$322.43
+21.8%
16.4%US$405.00US$195.00n/a26
Dec ’25US$264.80
US$328.39
+24.0%
15.6%US$405.00US$195.00n/a26
Nov ’25US$333.40
US$332.50
-0.3%
14.9%US$405.00US$200.00n/a26
Oct ’25US$333.40
US$328.72
-1.4%
15.2%US$405.00US$200.00n/a25
Sep ’25n/a
US$324.94
0%
15.6%US$381.00US$180.00n/a24
Aug ’25n/a
US$317.90
0%
15.5%US$380.00US$170.00n/a24
Jul ’25n/a
US$316.44
0%
15.4%US$380.00US$170.00n/a24
Jun ’25n/a
US$316.27
0%
15.4%US$380.00US$170.00n/a24
May ’25n/a
US$303.26
0%
16.7%US$380.00US$170.00n/a25
Apr ’25n/a
US$305.38
0%
16.7%US$380.00US$170.00n/a25
Mar ’25n/a
US$304.33
0%
16.9%US$380.00US$170.00n/a24
Feb ’25n/a
US$291.23
0%
16.1%US$350.00US$185.00US$264.8024
Jan ’25n/a
US$281.43
0%
14.8%US$336.00US$185.00US$264.8024
Dec ’24n/a
US$276.06
0%
14.5%US$336.00US$185.00US$264.8024
Nov ’24n/a
US$274.70
0%
14.4%US$336.00US$185.00US$333.4023
Oct ’24n/a
US$262.40
0%
14.1%US$320.00US$185.00US$333.4020
Sep ’24n/a
US$254.55
0%
14.5%US$310.00US$175.00n/a20
Aug ’24n/a
US$249.00
0%
13.7%US$294.00US$175.00n/a20
Jul ’24n/a
US$253.55
0%
14.2%US$325.00US$175.00n/a20
Jun ’24n/a
US$253.55
0%
14.2%US$325.00US$175.00n/a20
May ’24n/a
US$253.70
0%
14.3%US$325.00US$175.00n/a20
Apr ’24n/a
US$254.16
0%
14.7%US$325.00US$175.00n/a19
Mar ’24n/a
US$254.68
0%
14.8%US$325.00US$175.00n/a19
Feb ’24n/a
US$260.79
0%
14.8%US$325.00US$180.00n/a19
Analyst Price Target
Consensus Narrative from 26 Analysts
US$285.03
Fair Value
7.1% undervalued intrinsic discount
26
Number of Analysts

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/02/08 17:26
End of Day Share Price 2025/02/07 00:00
Earnings2024/12/31
Annual Earnings2024/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Amgen Inc. is covered by 62 analysts. 28 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
David ToungArgus Research Company
Brian SkorneyBaird
Ishan MajumdarBaptista Research