Price to FCFE (P/FCFE)
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Amgen Inc. pages available for free this week:
- Common-Size Balance Sheet: Assets
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Profitability Ratios
- Analysis of Liquidity Ratios
- Analysis of Solvency Ratios
- Analysis of Short-term (Operating) Activity Ratios
- Analysis of Long-term (Investment) Activity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Enterprise Value (EV)
- Enterprise Value to FCFF (EV/FCFF)
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Free Cash Flow to Equity (FCFE)
Amgen Inc., FCFE calculation
US$ in millions
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).
The financial information reveals significant fluctuations in free cash flow to equity (FCFE) over the five-year period. Net cash provided by operating activities demonstrates an overall positive trend, though with some volatility. However, FCFE exhibits a much more pronounced pattern of change.
- Operating Cash Flow
- Net cash provided by operating activities increased from US$9,261 million in 2021 to US$9,721 million in 2022, representing a moderate growth rate. A decrease was then observed in 2023, falling to US$8,471 million, before a substantial increase to US$11,490 million in 2024. The final year, 2025, saw a decline to US$9,958 million, remaining above the 2021 level but below the peak in 2024.
- Free Cash Flow to Equity (FCFE)
- FCFE experienced a dramatic increase from US$9,176 million in 2021 to US$15,407 million in 2022. This growth accelerated significantly in 2023, reaching US$33,035 million, the highest value within the observed period. A substantial decline then occurred in 2024, with FCFE falling to US$6,135 million. This downward trend continued into 2025, with FCFE further decreasing to US$2,417 million.
The divergence between operating cash flow and FCFE suggests that factors beyond core operations are significantly impacting the cash available to equity holders. The large increase in FCFE in 2023, followed by the subsequent sharp declines, warrants further investigation to determine the underlying drivers, such as changes in debt levels, share repurchases, or other financing activities. While operating cash flow generally remained healthy, the volatility in FCFE indicates a potentially complex capital allocation strategy or external factors influencing cash distribution to equity.
- FCFE Trend
- The FCFE trend is characterized by initial growth, a peak in 2023, and a subsequent, rapid decline. This pattern is not directly mirrored by the trend in operating cash flow, indicating that changes in financing or investment decisions are likely contributing to the observed fluctuations.
Price to FCFE Ratio, Current
Amgen Inc., current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in millions) | |
| FCFE per share | |
| Current share price (P) | |
| Valuation Ratio | |
| P/FCFE | |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| AbbVie Inc. | |
| Bristol-Myers Squibb Co. | |
| Danaher Corp. | |
| Eli Lilly & Co. | |
| Gilead Sciences Inc. | |
| Johnson & Johnson | |
| Merck & Co. Inc. | |
| Pfizer Inc. | |
| Regeneron Pharmaceuticals Inc. | |
| Thermo Fisher Scientific Inc. | |
| Vertex Pharmaceuticals Inc. | |
| P/FCFE, Sector | |
| Pharmaceuticals, Biotechnology & Life Sciences | |
| P/FCFE, Industry | |
| Health Care | |
Based on: 10-K (reporting date: 2025-12-31).
1 Click competitor name to see calculations.
If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.
Price to FCFE Ratio, Historical
Amgen Inc., historical P/FCFE calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Free cash flow to equity (FCFE) (in millions)2 | ||||||
| FCFE per share3 | ||||||
| Share price1, 4 | ||||||
| Valuation Ratio | ||||||
| P/FCFE5 | ||||||
| Benchmarks | ||||||
| P/FCFE, Competitors6 | ||||||
| AbbVie Inc. | ||||||
| Bristol-Myers Squibb Co. | ||||||
| Danaher Corp. | ||||||
| Eli Lilly & Co. | ||||||
| Gilead Sciences Inc. | ||||||
| Johnson & Johnson | ||||||
| Merck & Co. Inc. | ||||||
| Pfizer Inc. | ||||||
| Regeneron Pharmaceuticals Inc. | ||||||
| Thermo Fisher Scientific Inc. | ||||||
| Vertex Pharmaceuticals Inc. | ||||||
| P/FCFE, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | ||||||
| P/FCFE, Industry | ||||||
| Health Care | ||||||
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.
3 2025 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= ÷ =
4 Closing price as at the filing date of Amgen Inc. Annual Report.
5 2025 Calculation
P/FCFE = Share price ÷ FCFE per share
= ÷ =
6 Click competitor name to see calculations.
The Price to Free Cash Flow to Equity (P/FCFE) ratio exhibits significant fluctuations over the observed period. Initially, the ratio decreased substantially before increasing dramatically in later years. This movement is closely tied to concurrent changes in both share price and free cash flow to equity per share.
- Share Price
- The share price demonstrates a consistent upward trend overall, increasing from US$222.66 in 2021 to US$369.19 in 2025. The most substantial increase occurred between 2024 and 2025. Prior to this, growth was more moderate between 2021 and 2023.
- FCFE per Share
- Free cash flow to equity per share experienced considerable volatility. It rose significantly from US$16.47 in 2021 to US$61.64 in 2023, then declined sharply to US$4.48 in 2025. The largest decrease in FCFE per share occurred between 2023 and 2024, followed by a further decline in 2025.
- P/FCFE Ratio
- The P/FCFE ratio began at 13.52 in 2021 and decreased to a low of 4.71 in 2023, coinciding with the peak in FCFE per share. A substantial increase is then observed, rising to 25.50 in 2024 and further to 82.34 in 2025. This increase is driven by the combination of a continued increase in share price and a significant decrease in FCFE per share. The ratio’s movement suggests that the market valuation relative to the cash flow available to equity holders has become considerably higher in the later periods.
The interplay between share price and FCFE per share is critical to understanding the P/FCFE ratio’s behavior. While the share price generally increased, the dramatic decline in FCFE per share in the final two years had a disproportionately large impact on the ratio, leading to its substantial increase. This suggests a potential shift in investor expectations or a change in the company’s cash flow generation profile.