Amgen Inc.

NasdaqGS:AMGN Stock Report

Market Cap: US$141.6b

Amgen Valuation

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

Valuation Score

3/6

Valuation Score 3/6

  • 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.

Below Fair Value: AMGN ($263.38) is trading below our estimate of fair value ($525.15)

Significantly Below Fair Value: AMGN is trading below fair value by more than 20%.

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 Ratio33.5x
EarningsUS$4.23b
Market CapUS$141.58b

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 Average37.8x
REGN Regeneron Pharmaceuticals
16.2x6.9%US$75.5b
ABBV AbbVie
61.1x28.0%US$310.3b
HZNP Horizon Therapeutics
60.8x16.4%US$26.6b
BIIB Biogen
13.2x13.6%US$21.3b
AMGN Amgen
33.5x18.5%US$141.6b

Price-To-Earnings vs Peers: AMGN is expensive based on its Price-To-Earnings Ratio (33.5x) compared to the peer average (30.2x).

Price to Earnings Ratio vs Industry

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

12 CompaniesPrice / EarningsEstimated GrowthMarket Cap
ROIV Roivant Sciences
1.8x-58.7%US$8.42b
AGIO Agios Pharmaceuticals
3x-57.3%US$2.02b
INBX Inhibrx Biosciences
0.1xn/aUS$211.35m
DTIL Precision BioSciences
3.2x-41.0%US$36.21m
AMGN 33.5xIndustry Avg. 15.2xNo. of Companies12PE020406080100+
12 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: AMGN is expensive based on its Price-To-Earnings Ratio (33.5x) compared to the US Biotechs industry average (15.2x).

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 Ratio33.5x
Fair PE Ratio37.8x

Price-To-Earnings vs Fair Ratio: AMGN is good value based on its Price-To-Earnings Ratio (33.5x) compared to the estimated Fair Price-To-Earnings Ratio (37.8x).

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$263.38
US$322.43
+22.4%
16.4%US$405.00US$195.00n/a26
Dec ’25US$282.87
US$328.39
+16.1%
15.6%US$405.00US$195.00n/a26
Nov ’25US$319.22
US$332.50
+4.2%
14.9%US$405.00US$200.00n/a26
Oct ’25US$320.32
US$328.72
+2.6%
15.2%US$405.00US$200.00n/a25
Sep ’25US$333.83
US$324.94
-2.7%
15.6%US$381.00US$180.00n/a24
Aug ’25US$335.53
US$317.90
-5.3%
15.5%US$380.00US$170.00n/a24
Jul ’25US$311.01
US$316.44
+1.7%
15.4%US$380.00US$170.00n/a24
Jun ’25US$305.85
US$316.27
+3.4%
15.4%US$380.00US$170.00n/a24
May ’25US$277.37
US$303.26
+9.3%
16.7%US$380.00US$170.00n/a25
Apr ’25US$283.04
US$305.38
+7.9%
16.7%US$380.00US$170.00n/a25
Mar ’25US$280.33
US$304.33
+8.6%
16.9%US$380.00US$170.00n/a24
Feb ’25US$324.56
US$291.23
-10.3%
16.1%US$350.00US$185.00n/a24
Jan ’25US$288.02
US$281.43
-2.3%
14.8%US$336.00US$185.00n/a24
Dec ’24US$272.45
US$276.06
+1.3%
14.5%US$336.00US$185.00US$282.8724
Nov ’24US$260.84
US$274.70
+5.3%
14.4%US$336.00US$185.00US$319.2223
Oct ’24US$268.76
US$262.40
-2.4%
14.1%US$320.00US$185.00US$320.3220
Sep ’24US$256.71
US$254.55
-0.8%
14.5%US$310.00US$175.00US$333.8320
Aug ’24US$232.12
US$249.00
+7.3%
13.7%US$294.00US$175.00US$335.5320
Jul ’24US$222.02
US$253.55
+14.2%
14.2%US$325.00US$175.00US$311.0120
Jun ’24US$214.27
US$253.55
+18.3%
14.2%US$325.00US$175.00US$305.8520
May ’24US$238.90
US$253.70
+6.2%
14.3%US$325.00US$175.00US$277.3720
Apr ’24US$241.75
US$254.16
+5.1%
14.7%US$325.00US$175.00US$283.0419
Mar ’24US$236.19
US$254.68
+7.8%
14.8%US$325.00US$175.00US$280.3319
Feb ’24US$246.41
US$260.79
+5.8%
14.8%US$325.00US$180.00US$324.5619
Jan ’24US$262.64
US$264.74
+0.8%
15.2%US$325.00US$180.00US$288.0219
Dec ’23US$285.94
US$257.61
-9.9%
15.0%US$325.00US$180.00US$272.4518

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/22 02:33
End of Day Share Price 2024/12/20 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

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 here.

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 .

Analyst Sources

Amgen Inc. is covered by 66 analysts. 30 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