Common Stock Valuation Ratios (Price Multiples)
Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).
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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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Current Valuation Ratios
Amgen Inc., current price multiples
| Amgen Inc. | 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. | Pharmaceuticals, Biotechnology & Life Sciences | Health Care | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||
| Current share price (P) | |||||||||||||||||
| No. shares of common stock outstanding | |||||||||||||||||
| Growth rate (g) | |||||||||||||||||
| Earnings per share (EPS) | |||||||||||||||||
| Next year expected EPS | |||||||||||||||||
| Operating profit per share | |||||||||||||||||
| Sales per share | |||||||||||||||||
| Book value per share (BVPS) | |||||||||||||||||
| Valuation Ratios (Price Multiples) | |||||||||||||||||
| Price to earnings (P/E) | |||||||||||||||||
| Price to next year expected earnings | |||||||||||||||||
| Price-earnings-growth (PEG) | |||||||||||||||||
| Price to operating profit (P/OP) | |||||||||||||||||
| Price to sales (P/S) | |||||||||||||||||
| Price to book value (P/BV) | |||||||||||||||||
Based on: 10-K (reporting date: 2025-12-31).
If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.
Historical Valuation Ratios (Summary)
Amgen Inc., historical price multiples
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Price to earnings (P/E) | ||||||
| Price to operating profit (P/OP) | ||||||
| Price to sales (P/S) | ||||||
| Price to book value (P/BV) |
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 valuation ratios exhibit varied trends over the five-year period. Generally, the ratios demonstrate fluctuations, suggesting shifts in investor sentiment and market perception of the company’s value. A notable increase in price multiples occurred between 2022 and 2023, followed by a more mixed pattern in subsequent years.
- Price to Earnings (P/E)
- The Price to Earnings ratio decreased from 21.05 in 2021 to 19.56 in 2022, then increased to 23.14 in 2023. A significant jump to 38.24 was observed in 2024, followed by a decline to 25.81 in 2025. This indicates considerable volatility in earnings relative to market price, with a particularly high valuation in 2024.
- Price to Operating Profit (P/OP)
- The Price to Operating Profit ratio followed a similar pattern to the P/E ratio, decreasing from 16.24 in 2021 to 13.40 in 2022, increasing to 19.69 in 2023, then rising to 21.55 in 2024, and finally settling at 21.92 in 2025. The increases from 2022 to 2025 suggest a growing premium placed on the company’s operating profitability.
- Price to Sales (P/S)
- The Price to Sales ratio increased from 5.10 in 2021 to 5.78 in 2023, indicating investors were willing to pay more for each dollar of revenue. A decrease to 4.88 occurred in 2024, followed by a recovery to 5.66 in 2025. This suggests a correlation with overall revenue performance and market expectations.
- Price to Book Value (P/BV)
- The Price to Book Value ratio experienced substantial fluctuation. It increased significantly from 18.51 in 2021 to 35.01 in 2022, then decreased to 24.94 in 2023. The ratio remained relatively stable at 26.61 in 2024 and decreased slightly to 22.99 in 2025. This indicates a changing perception of the company’s net asset value relative to its market capitalization.
Overall, the observed trends suggest periods of increased and decreased investor confidence. The significant changes in the P/E and P/BV ratios, particularly in 2024, warrant further investigation to understand the underlying drivers of these valuation shifts.
Price to Earnings (P/E)
Amgen Inc., historical P/E 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$) | ||||||
| Net income (in millions) | ||||||
| Earnings per share (EPS)2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/E ratio4 | ||||||
| Benchmarks | ||||||
| P/E Ratio, Competitors5 | ||||||
| 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/E Ratio, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | ||||||
| P/E Ratio, 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.
2 2025 Calculation
EPS = Net income ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Amgen Inc. Annual Report.
4 2025 Calculation
P/E ratio = Share price ÷ EPS
= ÷ =
5 Click competitor name to see calculations.
The price to earnings (P/E) ratio exhibited fluctuating behavior over the five-year period. Initially, the ratio demonstrated a slight decrease, followed by a substantial increase, and then a subsequent decline.
- Share Price
- The share price generally increased throughout the period, with a notable acceleration in growth from December 31, 2024, to December 31, 2025. The price moved from US$222.66 to US$369.19 over the five years.
- Earnings Per Share (EPS)
- Earnings per share showed an initial increase from US$10.58 in 2021 to US$12.53 in 2023. A significant decrease was observed in 2024, falling to US$7.61, before recovering substantially to US$14.30 in 2025.
- Price to Earnings (P/E) Ratio - Trend Analysis
- The P/E ratio began at 21.05 in 2021 and decreased to 19.56 in 2022. It then increased to 23.14 in 2023. A considerable surge occurred in 2024, with the ratio reaching 38.24, primarily driven by the decline in earnings per share. The ratio then decreased to 25.81 in 2025, reflecting the recovery in earnings per share and continued share price appreciation, but at a slower rate than earnings growth.
- Price to Earnings (P/E) Ratio - Observations
- The substantial increase in the P/E ratio in 2024 suggests that investors were willing to pay a significantly higher price for each dollar of earnings, potentially due to expectations of future growth or a reassessment of the company’s value. The subsequent decrease in 2025 indicates a recalibration as earnings improved. The P/E ratio’s movement is highly sensitive to fluctuations in earnings per share.
The interplay between share price and earnings per share significantly influenced the P/E ratio. The largest change in the P/E ratio corresponded with the largest change in earnings per share, highlighting the importance of earnings in valuation.
Price to Operating Profit (P/OP)
Amgen Inc., historical P/OP calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Operating income (in millions) | ||||||
| Operating profit per share2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/OP ratio4 | ||||||
| Benchmarks | ||||||
| P/OP Ratio, Competitors5 | ||||||
| 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/OP Ratio, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | ||||||
| P/OP Ratio, 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.
2 2025 Calculation
Operating profit per share = Operating income ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Amgen Inc. Annual Report.
4 2025 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= ÷ =
5 Click competitor name to see calculations.
The price to operating profit (P/OP) ratio for the analyzed period demonstrates considerable fluctuation. Initially, a decrease is observed, followed by a period of increase and relative stabilization. The share price exhibited an overall upward trend, while operating profit per share experienced more variability.
- Share Price
- The share price increased from US$222.66 in 2021 to US$369.19 in 2025. The most substantial increase occurred between 2024 and 2025, with a gain of US$78.03. Prior to this, growth was more moderate, with an increase of US$17.34 between 2021 and 2022, and US$51.07 between 2022 and 2023. The increase from 2023 to 2024 was minimal, at US$0.09.
- Operating Profit Per Share
- Operating profit per share rose from US$13.71 in 2021 to US$17.91 in 2022, representing a significant increase. However, this was followed by a decline to US$14.74 in 2023 and a further decrease to US$13.51 in 2024. A recovery is then noted in 2025, with operating profit per share reaching US$16.84.
- P/OP Ratio
- The P/OP ratio began at 16.24 in 2021, then decreased to 13.40 in 2022, coinciding with the increase in operating profit per share. A subsequent increase was observed, with the ratio rising to 19.69 in 2023 and 21.55 in 2024, driven by the share price increase and the decline in operating profit per share. The ratio remained relatively stable in 2025 at 21.92, indicating a continued high valuation relative to operating profit despite the recovery in operating profit per share.
The interplay between share price and operating profit per share significantly influences the P/OP ratio. The initial decrease in the ratio suggests that the increase in earnings was outpacing the increase in share price. However, the subsequent increases in the ratio indicate that the share price growth began to outpace earnings growth. The stabilization in 2025 suggests a potential equilibrium, though the ratio remains elevated compared to its 2021 level.
Price to Sales (P/S)
Amgen Inc., historical P/S calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Product sales (in millions) | ||||||
| Sales per share2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/S ratio4 | ||||||
| Benchmarks | ||||||
| P/S Ratio, Competitors5 | ||||||
| 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/S Ratio, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | ||||||
| P/S Ratio, 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.
2 2025 Calculation
Sales per share = Product sales ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Amgen Inc. Annual Report.
4 2025 Calculation
P/S ratio = Share price ÷ Sales per share
= ÷ =
5 Click competitor name to see calculations.
The price-to-sales ratio exhibited a generally increasing trend over the observed period, though with some fluctuation. Initial values were relatively stable before a more pronounced increase towards the end of the timeframe. Share price and sales per share both demonstrated consistent growth, contributing to the observed ratio behavior.
- Price-to-Sales Ratio
- The price-to-sales ratio began at 5.10 in 2021 and increased to 5.17 in 2022, indicating a slight increase in valuation relative to sales. A further increase was observed in 2023, reaching 5.78. In 2024, the ratio decreased to 4.88, representing a notable decline in valuation relative to sales. Subsequently, the ratio increased again in 2025, closing at 5.66.
- Share Price Trend
- The share price demonstrated a consistent upward trend throughout the period. Starting at 222.66 in 2021, it rose to 240.00 in 2022, 290.07 in 2023, and 291.16 in 2024. The most significant increase occurred between 2024 and 2025, with the share price reaching 369.19.
- Sales per Share Trend
- Sales per share also exhibited a consistent upward trend, though with less volatility than the share price. It increased from 43.62 in 2021 to 46.45 in 2022, 50.21 in 2023, 59.62 in 2024, and finally to 65.20 in 2025. This consistent growth in sales per share likely contributed to the overall increase in share price.
The decrease in the price-to-sales ratio in 2024, despite increases in both share price and sales per share, suggests that sales growth may not have kept pace with investor expectations or that the market reassessed the company’s valuation. The subsequent increase in 2025 indicates a potential correction or renewed positive sentiment.
Price to Book Value (P/BV)
Amgen Inc., historical P/BV 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$) | ||||||
| Stockholders’ equity (in millions) | ||||||
| Book value per share (BVPS)2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/BV ratio4 | ||||||
| Benchmarks | ||||||
| P/BV Ratio, Competitors5 | ||||||
| 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/BV Ratio, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | ||||||
| P/BV Ratio, 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.
2 2025 Calculation
BVPS = Stockholders’ equity ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Amgen Inc. Annual Report.
4 2025 Calculation
P/BV ratio = Share price ÷ BVPS
= ÷ =
5 Click competitor name to see calculations.
The price to book value (P/BV) ratio exhibited considerable fluctuation over the five-year period. Initially, the ratio increased significantly before stabilizing and then decreasing slightly. The share price demonstrated a consistent upward trajectory, while the book value per share experienced more volatility.
- Price to Book Value (P/BV) Ratio
- The P/BV ratio rose substantially from 18.51 in 2021 to 35.01 in 2022, indicating a significant increase in the market’s valuation of the company’s net assets relative to its share price. This was followed by a decrease to 24.94 in 2023 and a further slight increase to 26.61 in 2024. The ratio concluded the period at 22.99 in 2025, representing a decline from its peak in 2022 but remaining above the 2021 level.
- Share Price
- The share price increased steadily throughout the period, moving from US$222.66 in 2021 to US$369.19 in 2025. The most substantial year-over-year increase occurred between 2024 and 2025, with a gain of US$78.03. Prior to that, the increase from 2021 to 2022 was US$17.34, from 2022 to 2023 was US$50.07, and from 2023 to 2024 was US$0.09.
- Book Value Per Share (BVPS)
- The book value per share experienced a notable decline from US$12.03 in 2021 to US$6.86 in 2022. It then recovered to US$11.63 in 2023 and US$10.94 in 2024, before increasing to US$16.06 in 2025. This suggests fluctuations in the company’s net asset value as reflected on the balance sheet.
The divergence between the share price and book value per share trends contributed to the observed P/BV ratio fluctuations. The initial increase in the P/BV ratio in 2022 was likely driven by a combination of a rising share price and a decreasing book value per share. The subsequent stabilization and slight decline in the P/BV ratio reflect the interplay between the continued increase in share price and the recovery, then further increase, in book value per share.