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).
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) | $279.21 | ||||||||||||||||
| No. shares of common stock outstanding | 537,706,118 | ||||||||||||||||
| Growth rate (g) | 26.96% | ||||||||||||||||
| Earnings per share (EPS) | $7.61 | ||||||||||||||||
| Next year expected EPS | $9.66 | ||||||||||||||||
| Operating profit per share | $13.50 | ||||||||||||||||
| Sales per share | $59.56 | ||||||||||||||||
| Book value per share (BVPS) | $10.93 | ||||||||||||||||
| Valuation Ratios (Price Multiples) | |||||||||||||||||
| Price to earnings (P/E) | 36.71 | 76.64 | — | 36.26 | 69.76 | 287.32 | 26.13 | 11.61 | 17.16 | 12.85 | 24.16 | — | 41.03 | 33.45 | |||
| Price to next year expected earnings | 28.91 | 175.84 | — | 33.24 | 54.92 | — | 23.53 | — | 16.34 | 10.39 | 21.08 | — | 38.28 | 30.88 | |||
| Price-earnings-growth (PEG) | 1.36 | — | — | 3.99 | 2.58 | — | 2.37 | — | 3.40 | 0.54 | 1.65 | — | 5.71 | 4.02 | |||
| Price to operating profit (P/OP) | 20.69 | 35.88 | — | 29.07 | 57.27 | 82.98 | 17.67 | 9.98 | 11.10 | 14.20 | 20.86 | — | 28.29 | 23.36 | |||
| Price to sales (P/S) | 4.69 | 5.82 | 1.95 | 5.92 | 16.40 | 4.82 | 4.14 | 3.10 | 2.17 | 3.99 | 3.57 | 10.37 | 5.05 | 2.35 | |||
| Price to book value (P/BV) | 25.55 | 98.61 | 5.77 | 2.85 | 52.06 | 7.13 | 5.14 | 4.29 | 1.56 | 1.93 | 3.09 | 6.97 | 6.39 | 4.93 | |||
Based on: 10-K (reporting date: 2024-12-31).
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
Based on: 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), 10-K (reporting date: 2020-12-31).
- Price to Earnings (P/E) Ratio
- The P/E ratio shows a fluctuating upward trend over the five-year period. Starting at 18.82 in 2020, it increased to 21.05 in 2021 before slightly declining to 19.56 in 2022. Thereafter, it rose more substantially to 23.14 in 2023 and then sharply increased to 38.24 in 2024. This pattern suggests increasing market valuation relative to earnings, particularly notable in the latest year.
- Price to Operating Profit (P/OP) Ratio
- The P/OP ratio similarly exhibits an overall rising trend with some variability. It decreased from 14.96 in 2020 to 13.4 in 2022, indicating a period of lower valuation relative to operating profit. However, this reversed in 2023 when the ratio increased significantly to 19.69, continuing upwards to 21.55 in 2024. This indicates rising market expectations relative to operating profitability in recent years.
- Price to Sales (P/S) Ratio
- The P/S ratio fluctuates within a narrower range compared to other ratios. It decreased from 5.64 in 2020 to 5.1 in 2021, then slightly increased to 5.17 in 2022 and 5.78 in 2023. However, it declined again to 4.88 in 2024. The relative stability with minor ups and downs suggests more moderate shifts in market valuation relative to sales over the period.
- Price to Book Value (P/BV) Ratio
- The P/BV ratio demonstrates considerable volatility. It increased markedly from 14.53 in 2020 to a peak of 35.01 in 2022, indicating a substantial increase in valuation relative to book value. This was followed by a decrease to 24.94 in 2023, before climbing again to 26.61 in 2024. This volatility suggests changing market sentiment or asset valuation affecting the book value relationship.
Price to Earnings (P/E)
Amgen Inc., historical P/E calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 537,204,943 | 535,918,901 | 533,976,238 | 557,029,370 | 577,566,383 | |
| Selected Financial Data (US$) | ||||||
| Net income (in millions) | 4,090) | 6,717) | 6,552) | 5,893) | 7,264) | |
| Earnings per share (EPS)2 | 7.61 | 12.53 | 12.27 | 10.58 | 12.58 | |
| Share price1, 3 | 291.16 | 290.07 | 240.00 | 222.66 | 236.65 | |
| Valuation Ratio | ||||||
| P/E ratio4 | 38.24 | 23.14 | 19.56 | 21.05 | 18.82 | |
| Benchmarks | ||||||
| P/E Ratio, Competitors5 | ||||||
| AbbVie Inc. | 79.59 | 63.84 | 22.62 | 22.07 | 40.17 | |
| Bristol-Myers Squibb Co. | — | 12.27 | 23.97 | 20.92 | — | |
| Danaher Corp. | 38.12 | 39.09 | 25.65 | 29.94 | 44.49 | |
| Eli Lilly & Co. | 77.63 | 135.24 | 50.08 | 40.66 | 31.95 | |
| Gilead Sciences Inc. | 296.57 | 16.17 | 22.68 | 12.36 | 641.48 | |
| Johnson & Johnson | 26.92 | 10.73 | 22.97 | 20.93 | 28.92 | |
| Merck & Co. Inc. | 13.49 | 893.99 | 19.21 | 14.78 | 26.72 | |
| Pfizer Inc. | 18.42 | 73.42 | 7.58 | 11.76 | 19.62 | |
| Regeneron Pharmaceuticals Inc. | 17.76 | 25.99 | 19.68 | 8.37 | 15.09 | |
| Thermo Fisher Scientific Inc. | 32.03 | 35.65 | 30.55 | 27.35 | 27.89 | |
| Vertex Pharmaceuticals Inc. | — | 30.42 | 23.02 | 26.55 | 20.18 | |
| P/E Ratio, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 45.15 | 32.80 | 20.23 | 19.27 | 34.89 | |
| P/E Ratio, Industry | ||||||
| Health Care | 37.14 | 29.43 | 21.38 | 21.35 | 30.75 | |
Based on: 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), 10-K (reporting date: 2020-12-31).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
EPS = Net income ÷ No. shares of common stock outstanding
= 4,090,000,000 ÷ 537,204,943 = 7.61
3 Closing price as at the filing date of Amgen Inc. Annual Report.
4 2024 Calculation
P/E ratio = Share price ÷ EPS
= 291.16 ÷ 7.61 = 38.24
5 Click competitor name to see calculations.
The financial data over the five-year period reveals several key trends. The share price exhibited moderate fluctuations initially, starting at $236.65 in 2020, declining slightly in 2021 to $222.66, and then increasing steadily to reach $291.16 by 2024. This reflects an overall upward trajectory in market valuation over the period.
Earnings per share (EPS) showed some volatility. After a decrease from $12.58 in 2020 to $10.58 in 2021, the EPS improved to $12.27 in 2022 and slightly rose to $12.53 in 2023, indicating a recovery and stabilization in profitability. However, in 2024, EPS experienced a significant decline to $7.61, suggesting a reduction in net earnings available to shareholders in that year.
The price-to-earnings (P/E) ratio fluctuated in line with changes in share price and EPS but rose notably by 2024. From 18.82 in 2020, it increased to 21.05 in 2021, then dipped slightly in 2022 to 19.56 before climbing to 23.14 in 2023. By 2024, the P/E ratio surged sharply to 38.24. This substantial increase is primarily attributable to the pronounced drop in EPS, as the share price remained relatively stable between 2023 and 2024. The elevated P/E ratio may indicate heightened market expectations for future growth or reflect a valuation premium despite diminished earnings.
In summary, the company’s market valuation, as reflected by the share price, showed a general upward trend over the period. The EPS improved after an initial decline but dropped significantly in the latest year, while the P/E ratio escalated considerably in 2024. These dynamics suggest a recent divergence between market valuation and earnings performance, warranting further analysis of underlying factors.
Price to Operating Profit (P/OP)
Amgen Inc., historical P/OP calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 537,204,943 | 535,918,901 | 533,976,238 | 557,029,370 | 577,566,383 | |
| Selected Financial Data (US$) | ||||||
| Operating income (in millions) | 7,258) | 7,897) | 9,566) | 7,639) | 9,139) | |
| Operating profit per share2 | 13.51 | 14.74 | 17.91 | 13.71 | 15.82 | |
| Share price1, 3 | 291.16 | 290.07 | 240.00 | 222.66 | 236.65 | |
| Valuation Ratio | ||||||
| P/OP ratio4 | 21.55 | 19.69 | 13.40 | 16.24 | 14.96 | |
| Benchmarks | ||||||
| P/OP Ratio, Competitors5 | ||||||
| AbbVie Inc. | 37.26 | 24.34 | 14.78 | 14.21 | 16.32 | |
| Bristol-Myers Squibb Co. | — | 13.53 | 18.29 | 19.84 | — | |
| Danaher Corp. | 30.56 | 35.64 | 20.97 | 25.14 | 36.91 | |
| Eli Lilly & Co. | 63.73 | 109.75 | 43.88 | 35.70 | 32.66 | |
| Gilead Sciences Inc. | 85.65 | 12.05 | 14.21 | 7.76 | 19.38 | |
| Johnson & Johnson | 18.20 | 17.78 | 17.62 | 18.68 | 21.84 | |
| Merck & Co. Inc. | 11.60 | 138.56 | 15.55 | 15.39 | 23.89 | |
| Pfizer Inc. | 11.92 | 121.63 | 6.64 | 12.74 | 21.12 | |
| Regeneron Pharmaceuticals Inc. | 19.63 | 25.39 | 18.01 | 7.55 | 14.82 | |
| Thermo Fisher Scientific Inc. | 27.65 | 31.16 | 25.30 | 21.07 | 22.81 | |
| Vertex Pharmaceuticals Inc. | — | 28.74 | 17.75 | 22.35 | 19.16 | |
| P/OP Ratio, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 31.13 | 32.68 | 15.94 | 16.68 | 25.95 | |
| P/OP Ratio, Industry | ||||||
| Health Care | 25.94 | 25.66 | 16.51 | 17.67 | 22.32 | |
Based on: 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), 10-K (reporting date: 2020-12-31).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
Operating profit per share = Operating income ÷ No. shares of common stock outstanding
= 7,258,000,000 ÷ 537,204,943 = 13.51
3 Closing price as at the filing date of Amgen Inc. Annual Report.
4 2024 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 291.16 ÷ 13.51 = 21.55
5 Click competitor name to see calculations.
- Share Price Analysis
- The share price exhibited a fluctuation over the observed period. Initially, it decreased from $236.65 at the end of 2020 to $222.66 by the end of 2021, representing a decline. Subsequently, it rebounded to $240 by the end of 2022, followed by a notable increase to $290.07 in 2023 and a marginal rise to $291.16 in 2024. Overall, this indicates a recovery and upward trend in market valuation after the initial decline.
- Operating Profit Per Share
- The operating profit per share showed variable performance. It declined from $15.82 in 2020 to $13.71 in 2021, marking a decrease. However, it improved significantly to $17.91 in 2022, the highest value in the series, before declining again to $14.74 in 2023 and further to $13.51 in 2024. This pattern suggests some volatility in operational profitability, with a peak in 2022 followed by a downward tendency.
- Price to Operating Profit Ratio (P/OP)
- The P/OP ratio displayed a generally increasing trend across the period. The ratio rose from 14.96 in 2020 to 16.24 in 2021, then decreased to 13.4 in 2022 coinciding with the peak in operating profit per share. Afterward, it sharply increased to 19.69 in 2023 and further to 21.55 in 2024. The higher ratio values in the last two years indicate the market has assigned a higher price relative to operating profit, which could reflect expectations of future growth, perceived quality of earnings, or other market sentiments.
- Summary and Insights
- Overall, the data portrays a company experiencing fluctuations in operating profitability while its market valuation, as reflected in share price, has shown resilience and upward momentum in recent years. The marked increase in P/OP in the last two years despite declining operating profits per share suggests investors may have optimistic projections about future financial performance or deem the operating profits as sustainable and valuable. However, the volatility in operating profit per share warrants attention to underlying operational factors driving these changes.
Price to Sales (P/S)
Amgen Inc., historical P/S calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 537,204,943 | 535,918,901 | 533,976,238 | 557,029,370 | 577,566,383 | |
| Selected Financial Data (US$) | ||||||
| Product sales (in millions) | 32,026) | 26,910) | 24,801) | 24,297) | 24,240) | |
| Sales per share2 | 59.62 | 50.21 | 46.45 | 43.62 | 41.97 | |
| Share price1, 3 | 291.16 | 290.07 | 240.00 | 222.66 | 236.65 | |
| Valuation Ratio | ||||||
| P/S ratio4 | 4.88 | 5.78 | 5.17 | 5.10 | 5.64 | |
| Benchmarks | ||||||
| P/S Ratio, Competitors5 | ||||||
| AbbVie Inc. | 6.04 | 5.72 | 4.61 | 4.53 | 4.05 | |
| Bristol-Myers Squibb Co. | 2.36 | 2.19 | 3.29 | 3.16 | 3.16 | |
| Danaher Corp. | 6.23 | 7.76 | 5.79 | 6.37 | 7.01 | |
| Eli Lilly & Co. | 18.25 | 20.77 | 10.96 | 8.01 | 8.06 | |
| Gilead Sciences Inc. | 4.98 | 3.40 | 3.86 | 2.85 | 3.24 | |
| Johnson & Johnson | 4.26 | 4.43 | 4.34 | 4.66 | 5.15 | |
| Merck & Co. Inc. | 3.60 | 5.43 | 4.71 | 3.96 | 3.93 | |
| Pfizer Inc. | 2.32 | 2.61 | 2.35 | 3.15 | 4.42 | |
| Regeneron Pharmaceuticals Inc. | 5.52 | 7.84 | 7.01 | 4.20 | 6.24 | |
| Thermo Fisher Scientific Inc. | 4.73 | 4.99 | 4.73 | 5.39 | 5.52 | |
| Vertex Pharmaceuticals Inc. | 10.78 | 11.16 | 8.56 | 8.21 | 8.82 | |
| P/S Ratio, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 5.55 | 5.89 | 4.56 | 4.50 | 4.90 | |
| P/S Ratio, Industry | ||||||
| Health Care | 2.61 | 2.72 | 2.48 | 2.65 | 2.59 | |
Based on: 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), 10-K (reporting date: 2020-12-31).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
Sales per share = Product sales ÷ No. shares of common stock outstanding
= 32,026,000,000 ÷ 537,204,943 = 59.62
3 Closing price as at the filing date of Amgen Inc. Annual Report.
4 2024 Calculation
P/S ratio = Share price ÷ Sales per share
= 291.16 ÷ 59.62 = 4.88
5 Click competitor name to see calculations.
- Share Price Trend
- The share price experienced a decline from $236.65 at the end of 2020 to $222.66 at the end of 2021. In the following years, the share price showed a notable upward trend, rising to $240.00 by the end of 2022 and then significantly increasing to $290.07 in 2023. The price stabilized marginally, with a slight increase to $291.16 in 2024.
- Sales Per Share Trend
- Sales per share displayed consistent growth across the entire period. Starting at $41.97 in 2020, it incrementally increased each year, reaching $43.62 in 2021, $46.45 in 2022, $50.21 in 2023, and showing a more marked rise to $59.62 in 2024. This indicates progressively improving revenue generation on a per-share basis.
- Price-to-Sales (P/S) Ratio Analysis
- The P/S ratio demonstrated some variability over the years. Beginning at 5.64 in 2020, it declined to 5.10 in 2021, followed by a slight increase to 5.17 in 2022. There was a more noticeable rise to 5.78 in 2023, after which the ratio fell to 4.88 in 2024. The downward trend in the P/S ratio at the end of the period suggests that the share price increase in 2024 was relatively less pronounced compared to sales growth, potentially indicating a valuation adjustment.
- Overall Insights
- Overall, the data reveals a pattern of steady growth in sales per share, which is a positive indicator of the company’s operational performance. The share price trend aligns generally with this growth, particularly with strong appreciation in 2023. Meanwhile, fluctuations in the P/S ratio reflect changing market perceptions of valuation relative to sales, with the 2024 decrease possibly hinting at more conservative investor sentiment or a reevaluation of growth expectations despite robust sales performance.
Price to Book Value (P/BV)
Amgen Inc., historical P/BV calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 537,204,943 | 535,918,901 | 533,976,238 | 557,029,370 | 577,566,383 | |
| Selected Financial Data (US$) | ||||||
| Stockholders’ equity (in millions) | 5,877) | 6,232) | 3,661) | 6,700) | 9,409) | |
| Book value per share (BVPS)2 | 10.94 | 11.63 | 6.86 | 12.03 | 16.29 | |
| Share price1, 3 | 291.16 | 290.07 | 240.00 | 222.66 | 236.65 | |
| Valuation Ratio | ||||||
| P/BV ratio4 | 26.61 | 24.94 | 35.01 | 18.51 | 14.53 | |
| Benchmarks | ||||||
| P/BV Ratio, Competitors5 | ||||||
| AbbVie Inc. | 102.40 | 29.97 | 15.52 | 16.53 | 14.18 | |
| Bristol-Myers Squibb Co. | 6.98 | 3.35 | 4.88 | 4.07 | 3.55 | |
| Danaher Corp. | 3.00 | 3.47 | 3.64 | 4.16 | 3.93 | |
| Eli Lilly & Co. | 57.93 | 65.80 | 29.36 | 25.28 | 35.07 | |
| Gilead Sciences Inc. | 7.36 | 4.01 | 4.90 | 3.65 | 4.33 | |
| Johnson & Johnson | 5.30 | 5.48 | 5.37 | 5.90 | 6.72 | |
| Merck & Co. Inc. | 4.99 | 8.68 | 6.07 | 5.05 | 7.46 | |
| Pfizer Inc. | 1.68 | 1.75 | 2.48 | 3.35 | 2.98 | |
| Regeneron Pharmaceuticals Inc. | 2.67 | 3.96 | 3.77 | 3.60 | 4.81 | |
| Thermo Fisher Scientific Inc. | 4.09 | 4.57 | 4.83 | 5.18 | 5.15 | |
| Vertex Pharmaceuticals Inc. | 7.24 | 6.26 | 5.50 | 6.16 | 6.30 | |
| P/BV Ratio, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 7.03 | 6.77 | 5.66 | 5.72 | 5.99 | |
| P/BV Ratio, Industry | ||||||
| Health Care | 5.48 | 5.44 | 4.90 | 5.07 | 4.90 | |
Based on: 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), 10-K (reporting date: 2020-12-31).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
BVPS = Stockholders’ equity ÷ No. shares of common stock outstanding
= 5,877,000,000 ÷ 537,204,943 = 10.94
3 Closing price as at the filing date of Amgen Inc. Annual Report.
4 2024 Calculation
P/BV ratio = Share price ÷ BVPS
= 291.16 ÷ 10.94 = 26.61
5 Click competitor name to see calculations.
- Share Price
- The share price exhibited a general upward trend over the observed period. Beginning at $236.65 at the end of 2020, it decreased slightly to $222.66 in 2021, before increasing significantly to $240 in 2022. The upward momentum continued more robustly in 2023 and 2024, reaching $290.07 and $291.16 respectively. This indicates growing market confidence and potentially improved company prospects or profitability during these years.
- Book Value Per Share (BVPS)
- The book value per share demonstrated notable variability across the timeframe. It started at $16.29 in 2020, declined sharply to $12.03 in 2021 and further dropped to a low of $6.86 in 2022. Subsequently, there was a recovery in 2023 and 2024, with BVPS rising to $11.63 and then slightly decreasing to $10.94. This pattern suggests periods of asset revaluation or changes in equity structure, which contributed to volatility in book value per share.
- Price-to-Book Value Ratio (P/BV)
- The price-to-book ratio experienced significant fluctuations throughout the period. It started at 14.53 at the end of 2020 and increased sharply to 18.51 in 2021. This upward trend accelerated in 2022, peaking at 35.01, indicating that the market valued the company at a much higher multiple relative to its book value during that year. In 2023, the ratio decreased to 24.94 but remained elevated, before slightly rising again to 26.61 in 2024. This suggests a market perception of strong growth potential or intangible asset value not fully captured by book value despite the lower BVPS in 2022.