Amgen Valuation
| AMGN Stock | USD 272.11 2.68 0.99% |
At this time, the firm appears to be undervalued. Amgen Inc shows a prevailing Real Value of $299.76 per share. The current price of the firm is $272.11. Our model approximates the value of Amgen Inc from analyzing the firm fundamentals such as profit margin of 0.13 %, and Return On Equity of 0.56 as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Amgen's valuation include:
Price Book 19.2061 | Enterprise Value | Enterprise Value Ebitda 14.5332 | Price Sales 4.4516 | Forward PE 12.9199 |
Undervalued
Today
Please note that Amgen's price fluctuation is very steady at this time. Calculation of the real value of Amgen Inc is based on 3 months time horizon. Increasing Amgen's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since Amgen is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Amgen Stock. However, Amgen's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 272.11 | Real 299.76 | Target 319.35 | Hype 269.97 |
The intrinsic value of Amgen's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Amgen's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Amgen Inc helps investors to forecast how Amgen stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Amgen more accurately as focusing exclusively on Amgen's fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Amgen's intrinsic value based on its ongoing forecasts of Amgen's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Amgen's closest peers.
Amgen Cash |
|
Amgen Valuation Trend
Knowing Amgen's actual value is paramount for traders when making sound investment determinations. Using both Amgen's enterprise value as well as its market capitalization is the best way to estimate the value of the company and is usually enough for investors to make market timing decisions.
Amgen Revenue by Product
Amgen Total Value Analysis
Amgen Inc is presently forecasted to have valuation of 195.95 B with market capitalization of 144.83 B, debt of 64.61 B, and cash on hands of 11.48 B. Please note that valuation may be misleading and is a subject to auditing or accounting errors. We encourage investors to vigilantly validate all of the Amgen fundamentals before making equity appraisal based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
195.95 B | 144.83 B | 64.61 B | 11.48 B |
Amgen Investor Information
About 81.0% of the company shares are held by institutions such as insurance companies. The company has Price/Earnings To Growth (PEG) ratio of 1.91. Amgen Inc recorded earning per share (EPS) of 7.84. The entity last dividend was issued on the 14th of February 2025. The firm had 2:1 split on the 22nd of November 1999. Based on the analysis of Amgen's profitability, liquidity, and operating efficiency, Amgen Inc may be sliding down financialy. It has an above-average odds of going through some form of financial crisis next quarter.Amgen Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Amgen has an asset utilization ratio of 29.02 percent. This suggests that the Company is making $0.29 for each dollar of assets. An increasing asset utilization means that Amgen Inc is more efficient with each dollar of assets it utilizes for everyday operations.Amgen Ownership Allocation
Amgen holds a total of 537.53 Million outstanding shares. The majority of Amgen Inc outstanding shares are owned by other corporate entities. These outside corporations are usually referred to as non-private investors looking to acquire positions in Amgen Inc to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Amgen. Please pay attention to any change in the institutional holdings of Amgen Inc as this could imply that something significant has changed or is about to change at the company. On November 11, 2024, Representative Ro Khanna of US Congress acquired under $15k worth of Amgen Inc's common stock.Amgen Profitability Analysis
The company reported the previous year's revenue of 28.19 B. Net Income was 6.72 B with profit before overhead, payroll, taxes, and interest of 19.71 B.Amgen Past Distributions to stockholders
About Amgen Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of Amgen Inc. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Amgen Inc based exclusively on its fundamental and basic technical indicators. By analyzing Amgen's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of Amgen's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of Amgen. We calculate exposure to Amgen's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Amgen's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 22.7 B | 23.8 B | |
| Pretax Profit Margin | 0.28 | 0.25 | |
| Operating Profit Margin | 0.25 | 0.26 | |
| Net Profit Margin | 0.21 | 0.18 | |
| Gross Profit Margin | 0.63 | 0.65 |
A single share of Amgen represents a small ownership stake in the entity. As a stockholder of Amgen, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
Amgen Dividends Analysis For Valuation
As of the 17th of January 2025, Dividends Paid is likely to drop to about 2.9 B. In addition to that, Dividend Yield is likely to drop to 0.02. As of the 17th of January 2025, Price Earnings To Growth Ratio is likely to grow to 6.95, though Retained Earnings are likely to grow to (22.7 B).
| Last Reported | Projected for Next Year | ||
| Dividends Paid | 5.2 B | 2.9 B | |
| Dividend Yield | 0.03 | 0.02 | |
| Dividend Payout Ratio | 0.61 | 0.42 | |
| Dividend Paid And Capex Coverage Ratio | 1.35 | 1.28 |
There are various types of dividends Amgen can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Amgen shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Amgen Inc directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Amgen pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Amgen by the value of the dividends paid out.
Amgen Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines.
| Common Stock Shares Outstanding | 538 M | |
| Quarterly Earnings Growth Y O Y | 0.621 | |
| Forward Price Earnings | 12.9199 |
Amgen Current Valuation Indicators
Amgen's valuation analysis is a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Amgen's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Amgen, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Amgen's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Amgen's worth.When determining whether Amgen Inc offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Amgen's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Amgen Inc Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Amgen Inc Stock: Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Amgen Inc. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in price. You can also try the Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Is Biotechnology space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Amgen. If investors know Amgen will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Amgen listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.621 | Dividend Share 8.88 | Earnings Share 7.84 | Revenue Per Share | Quarterly Revenue Growth 0.232 |
The market value of Amgen Inc is measured differently than its book value, which is the value of Amgen that is recorded on the company's balance sheet. Investors also form their own opinion of Amgen's value that differs from its market value or its book value, called intrinsic value, which is Amgen's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Amgen's market value can be influenced by many factors that don't directly affect Amgen's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Amgen's value and its price as these two are different measures arrived at by different means. Investors typically determine if Amgen is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Amgen's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.