Stock Analysis on Net

Amgen Inc. (NASDAQ:AMGN)

Enterprise Value to FCFF (EV/FCFF) 

Microsoft Excel

Free Cash Flow to The Firm (FCFF)

Amgen Inc., FCFF calculation

US$ in millions

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12 months ended: Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Net income 6,717 6,552 5,893 7,264 7,842
Net noncash charges 2,238 3,902 4,562 3,449 2,039
Changes in operating assets and liabilities, net of acquisitions (484) (733) (1,194) (216) (731)
Net cash provided by operating activities 8,471 9,721 9,261 10,497 9,150
Interest paid, net of tax1 2,052 1,070 1,055 1,072 1,115
Purchases of property, plant and equipment (1,112) (936) (880) (608) (618)
Free cash flow to the firm (FCFF) 9,411 9,855 9,436 10,961 9,647

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Item Description The company
FCFF Free cash flow to the firm is the cash flow available to the Amgen Inc. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made. Amgen Inc. FCFF increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.

Interest Paid, Net of Tax

Amgen Inc., interest paid, net of tax calculation

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Effective Income Tax Rate (EITR)
EITR1 14.50% 10.80% 12.10% 10.70% 14.20%
Interest Paid, Net of Tax
Interest paid, before tax 2,400 1,200 1,200 1,200 1,300
Less: Interest paid, tax2 348 130 145 128 185
Interest paid, net of tax 2,052 1,070 1,055 1,072 1,115

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 See details »

2 2023 Calculation
Interest paid, tax = Interest paid × EITR
= 2,400 × 14.50% = 348


Enterprise Value to FCFF Ratio, Current

Amgen Inc., current EV/FCFF calculation, comparison to benchmarks

Microsoft Excel
Selected Financial Data (US$ in millions)
Enterprise value (EV) 217,732
Free cash flow to the firm (FCFF) 9,411
Valuation Ratio
EV/FCFF 23.14
Benchmarks
EV/FCFF, Competitors1
AbbVie Inc. 13.50
Bristol-Myers Squibb Co. 8.06
Danaher Corp. 38.03
Eli Lilly & Co. 707.90
Gilead Sciences Inc. 12.20
Johnson & Johnson 18.12
Merck & Co. Inc. 38.02
Pfizer Inc. 33.46
Regeneron Pharmaceuticals Inc. 25.45
Thermo Fisher Scientific Inc. 29.96
Zoetis Inc. 43.74
EV/FCFF, Sector
Pharmaceuticals, Biotechnology & Life Sciences 27.62
EV/FCFF, Industry
Health Care 23.82

Based on: 10-K (reporting date: 2023-12-31).

1 Click competitor name to see calculations.

If the company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.
Otherwise, if the company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.


Enterprise Value to FCFF Ratio, Historical

Amgen Inc., historical EV/FCFF calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 209,123 157,794 149,300 159,020 154,878
Free cash flow to the firm (FCFF)2 9,411 9,855 9,436 10,961 9,647
Valuation Ratio
EV/FCFF3 22.22 16.01 15.82 14.51 16.05
Benchmarks
EV/FCFF, Competitors4
AbbVie Inc. 14.89 12.15 13.18 13.95 11.60
Bristol-Myers Squibb Co. 9.14 13.87 10.52 11.63 23.39
Danaher Corp. 36.34 25.74 28.25 30.66 37.11
Eli Lilly & Co. 655.33 59.14 38.37 39.01 36.26
Gilead Sciences Inc. 13.41 13.58 8.42 13.60 9.78
Johnson & Johnson 19.30 23.80 21.25 20.75 19.31
Merck & Co. Inc. 37.84 19.09 23.27 34.12 20.46
Pfizer Inc. 32.24 9.15 8.40 21.74 19.44
Regeneron Pharmaceuticals Inc. 23.99 17.96 9.81 25.74 19.54
Thermo Fisher Scientific Inc. 28.85 31.61 33.14 26.14 28.88
Zoetis Inc. 47.16 54.71 49.22 43.54 47.27
EV/FCFF, Sector
Pharmaceuticals, Biotechnology & Life Sciences 27.50 18.37 16.44 20.25 19.59
EV/FCFF, Industry
Health Care 23.93 17.99 17.44 18.06 18.43

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 See details »

2 See details »

3 2023 Calculation
EV/FCFF = EV ÷ FCFF
= 209,123 ÷ 9,411 = 22.22

4 Click competitor name to see calculations.

Valuation ratio Description The company
EV/FCFF Enterprise value to free cash flow to the firm is whole company valuation indicator. Amgen Inc. EV/FCFF ratio increased from 2021 to 2022 and from 2022 to 2023.