Enterprise Value (EV)
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Amgen Inc. pages available for free this week:
- Cash Flow Statement
- Common-Size Balance Sheet: Assets
- Analysis of Liquidity Ratios
- Price to FCFE (P/FCFE)
- Capital Asset Pricing Model (CAPM)
- Present Value of Free Cash Flow to Equity (FCFE)
- Selected Financial Data since 2005
- Return on Equity (ROE) since 2005
- Current Ratio since 2005
- Price to Operating Profit (P/OP) since 2005
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Current Enterprise Value (EV)
Amgen Inc., current enterprise value calculation
| Current share price (P) | |
| No. shares of common stock outstanding | |
| US$ in millions | |
| Common equity (market value)1 | |
| Total equity | |
| Add: Current portion of long-term debt (per books) | |
| Add: Long-term debt, excluding current portion (per books) | |
| Total equity and debt | |
| Less: Cash and cash equivalents | |
| Less: Marketable securities | |
| Enterprise value (EV) | |
Based on: 10-K (reporting date: 2025-12-31).
1 Common equity (market value) = Share price × No. shares of common stock outstanding
= ×
Historical Enterprise Value (EV)
Amgen Inc., EV calculation
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 Data adjusted for splits and stock dividends.
2 Closing price as at the filing date of Amgen Inc. Annual Report.
3 2025 Calculation
Common equity (market value) = Share price × No. shares of common stock outstanding
= ×
The enterprise value demonstrates a consistent upward trajectory over the five-year period. Simultaneously, the components contributing to this value – common equity, total equity, and total equity and debt – also exhibit growth, though with some nuanced variations. A detailed examination of these elements reveals key insights into the company’s financial structure and market perception.
- Enterprise Value Trend
- Enterprise value increased from US$149.3 billion in 2021 to US$244.5 billion in 2025. The growth was not linear; while a substantial increase occurred between 2021 and 2023 (US$60 billion), the rate of increase slowed between 2023 and 2024 (US$4.6 billion) before resuming a stronger growth rate between 2024 and 2025 (US$39.9 billion). This suggests potential shifts in market conditions or company-specific factors influencing valuation.
- Equity Value
- Common equity and total equity values are identical across all reported years, indicating that the company’s equity structure remained consistent during the period. Both metrics increased from US$124.0 billion in 2021 to US$199.0 billion in 2025, mirroring the overall growth observed in enterprise value. The consistent alignment between common and total equity suggests no significant changes in other equity components.
- Debt and Total Capitalization
- Total equity and debt increased from US$157.3 billion in 2021 to US$253.6 billion in 2025. The increase in total equity and debt outpaced the growth in equity alone, indicating a growing reliance on debt financing. The difference between total equity and total equity and debt represents the company’s debt, which increased by US$96.3 billion over the period. This suggests a deliberate strategy to leverage debt to fund growth initiatives or capital allocation.
- Relationship between Components and EV
- The enterprise value consistently exceeds total equity, as expected, reflecting the inclusion of net debt in its calculation. The difference between enterprise value and total equity and debt represents net debt, which increased alongside enterprise value. The proportional increase in enterprise value relative to the increase in total equity and debt suggests that market participants are positively valuing the company’s use of debt, potentially due to anticipated returns on invested capital exceeding the cost of debt.
In summary, the company experienced substantial growth in enterprise value, driven by increases in both equity and debt. The increasing reliance on debt financing appears to be accompanied by positive market reception, as evidenced by the continued growth in enterprise value. The slight deceleration in EV growth between 2023 and 2024 warrants further investigation to understand the underlying causes.