Stock Analysis on Net

Amgen Inc. (NASDAQ:AMGN)

Common Stock Valuation Ratios (Price Multiples) 

Microsoft Excel

Current Valuation Ratios

Amgen Inc., current price multiples

Microsoft Excel
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. Zoetis Inc. Pharmaceuticals, Biotechnology & Life Sciences Health Care
Selected Financial Data
Current share price (P) $305.84
No. shares of common stock outstanding 536,434,692
Growth rate (g) 44.79%
 
Earnings per share (EPS) $12.52
Next year expected EPS $18.13
Operating profit per share $14.72
Sales per share $50.16
Book value per share (BVPS) $11.62
Valuation Ratios (Price Multiples)
Price to earnings (P/E) 24.43 57.03 10.42 41.04 146.44 14.44 10.06 898.56 77.23 27.45 37.19 33.11 33.14 28.77
Price to next year expected earnings 16.87 71.09 10.15 37.45 98.94 8.89 70.43 22.00 32.45 24.44 30.16 26.09
Price-earnings-growth (PEG) 0.55 4.03 4.28 3.05 0.77 8.00 1.11 2.55 0.93 3.35 2.80
Price to operating profit (P/OP) 20.78 21.74 11.48 37.42 118.83 10.76 16.68 139.27 737.17 26.82 32.50 25.73 33.25 24.57
Price to sales (P/S) 6.10 5.11 1.86 8.15 22.49 3.04 4.15 5.46 2.80 8.27 5.20 9.08 5.89 2.31
Price to book value (P/BV) 26.33 26.77 2.84 3.64 71.24 3.58 5.14 8.73 1.84 4.18 4.77 15.53 6.95 5.22

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

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

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Price to earnings (P/E) 23.14 19.56 21.05 18.82 17.07
Price to operating profit (P/OP) 19.69 13.40 16.24 14.96 13.84
Price to sales (P/S) 5.78 5.17 5.10 5.64 6.03
Price to book value (P/BV) 24.94 35.01 18.51 14.53 13.84

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).

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. Amgen Inc. P/E ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. Amgen Inc. P/OP ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. Amgen Inc. P/S ratio increased from 2021 to 2022 and from 2022 to 2023.
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company required rate of return and its actual rate of return. Amgen Inc. P/BV ratio increased from 2021 to 2022 but then slightly decreased from 2022 to 2023 not reaching 2021 level.

Price to Earnings (P/E)

Amgen Inc., historical P/E calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
No. shares of common stock outstanding1 535,918,901 533,976,238 557,029,370 577,566,383 589,806,819
Selected Financial Data (US$)
Net income (in millions) 6,717 6,552 5,893 7,264 7,842
Earnings per share (EPS)2 12.53 12.27 10.58 12.58 13.30
Share price1, 3 290.07 240.00 222.66 236.65 227.00
Valuation Ratio
P/E ratio4 23.14 19.56 21.05 18.82 17.07
Benchmarks
P/E Ratio, Competitors5
AbbVie Inc. 63.84 22.62 22.07 40.17 17.82
Bristol-Myers Squibb Co. 12.27 23.97 20.92 41.99
Danaher Corp. 39.09 25.65 29.94 44.49 38.34
Eli Lilly & Co. 135.24 50.08 40.66 31.95 16.19
Gilead Sciences Inc. 16.17 22.68 12.36 641.48 16.45
Johnson & Johnson 10.73 22.97 20.93 28.92 25.99
Merck & Co. Inc. 893.99 19.21 14.78 26.72 20.60
Pfizer Inc. 73.42 7.58 11.76 19.62 11.63
Regeneron Pharmaceuticals Inc. 25.99 19.68 8.37 15.09 19.86
Thermo Fisher Scientific Inc. 35.65 30.55 27.35 27.89 33.36
Zoetis Inc. 35.84 37.68 45.82 48.25 45.89
P/E Ratio, Sector
Pharmaceuticals, Biotechnology & Life Sciences 32.98 20.46 19.59 36.00 21.03
P/E Ratio, Industry
Health Care 28.92 21.25 21.26 29.00 21.23

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 Data adjusted for splits and stock dividends.

2 2023 Calculation
EPS = Net income ÷ No. shares of common stock outstanding
= 6,717,000,000 ÷ 535,918,901 = 12.53

3 Closing price as at the filing date of Amgen Inc. Annual Report.

4 2023 Calculation
P/E ratio = Share price ÷ EPS
= 290.07 ÷ 12.53 = 23.14

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. Amgen Inc. P/E ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.

Price to Operating Profit (P/OP)

Amgen Inc., historical P/OP calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
No. shares of common stock outstanding1 535,918,901 533,976,238 557,029,370 577,566,383 589,806,819
Selected Financial Data (US$)
Operating income (in millions) 7,897 9,566 7,639 9,139 9,674
Operating profit per share2 14.74 17.91 13.71 15.82 16.40
Share price1, 3 290.07 240.00 222.66 236.65 227.00
Valuation Ratio
P/OP ratio4 19.69 13.40 16.24 14.96 13.84
Benchmarks
P/OP Ratio, Competitors5
AbbVie Inc. 24.34 14.78 14.21 16.32 10.82
Bristol-Myers Squibb Co. 13.53 18.29 19.84 24.42
Danaher Corp. 35.64 20.97 25.14 36.91 34.47
Eli Lilly & Co. 109.75 43.88 35.70 32.66 27.08
Gilead Sciences Inc. 12.05 14.21 7.76 19.38 20.66
Johnson & Johnson 17.78 17.62 18.68 21.84 19.83
Merck & Co. Inc. 138.56 15.55 15.39 23.89 17.47
Pfizer Inc. 700.76 6.80 13.30 23.12 14.36
Regeneron Pharmaceuticals Inc. 25.39 18.01 7.55 14.82 19.01
Thermo Fisher Scientific Inc. 31.16 25.30 21.07 22.81 26.84
Zoetis Inc. 27.86 27.31 33.82 35.22 35.00
P/OP Ratio, Sector
Pharmaceuticals, Biotechnology & Life Sciences 33.09 16.20 17.02 26.75 18.78
P/OP Ratio, Industry
Health Care 24.70 16.46 17.55 21.50 17.39

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 Data adjusted for splits and stock dividends.

2 2023 Calculation
Operating profit per share = Operating income ÷ No. shares of common stock outstanding
= 7,897,000,000 ÷ 535,918,901 = 14.74

3 Closing price as at the filing date of Amgen Inc. Annual Report.

4 2023 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 290.07 ÷ 14.74 = 19.69

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. Amgen Inc. P/OP ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.

Price to Sales (P/S)

Amgen Inc., historical P/S calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
No. shares of common stock outstanding1 535,918,901 533,976,238 557,029,370 577,566,383 589,806,819
Selected Financial Data (US$)
Product sales (in millions) 26,910 24,801 24,297 24,240 22,204
Sales per share2 50.21 46.45 43.62 41.97 37.65
Share price1, 3 290.07 240.00 222.66 236.65 227.00
Valuation Ratio
P/S ratio4 5.78 5.17 5.10 5.64 6.03
Benchmarks
P/S Ratio, Competitors5
AbbVie Inc. 5.72 4.61 4.53 4.05 4.22
Bristol-Myers Squibb Co. 2.19 3.29 3.16 3.16 5.52
Danaher Corp. 7.76 5.79 6.37 7.01 6.29
Eli Lilly & Co. 20.77 10.96 8.01 8.06 6.03
Gilead Sciences Inc. 3.40 3.86 2.85 3.24 4.00
Johnson & Johnson 4.43 4.34 4.66 5.15 4.79
Merck & Co. Inc. 5.43 4.71 3.96 3.93 4.33
Pfizer Inc. 2.66 2.37 3.18 4.50 3.66
Regeneron Pharmaceuticals Inc. 7.84 7.01 4.20 6.24 5.34
Thermo Fisher Scientific Inc. 4.99 4.73 5.39 5.52 4.83
Zoetis Inc. 9.83 9.86 12.00 11.84 11.00
P/S Ratio, Sector
Pharmaceuticals, Biotechnology & Life Sciences 5.86 4.58 4.57 4.96 4.87
P/S Ratio, Industry
Health Care 2.33 2.18 2.31 2.25 2.16

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 Data adjusted for splits and stock dividends.

2 2023 Calculation
Sales per share = Product sales ÷ No. shares of common stock outstanding
= 26,910,000,000 ÷ 535,918,901 = 50.21

3 Closing price as at the filing date of Amgen Inc. Annual Report.

4 2023 Calculation
P/S ratio = Share price ÷ Sales per share
= 290.07 ÷ 50.21 = 5.78

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. Amgen Inc. P/S ratio increased from 2021 to 2022 and from 2022 to 2023.

Price to Book Value (P/BV)

Amgen Inc., historical P/BV calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
No. shares of common stock outstanding1 535,918,901 533,976,238 557,029,370 577,566,383 589,806,819
Selected Financial Data (US$)
Stockholders’ equity (in millions) 6,232 3,661 6,700 9,409 9,673
Book value per share (BVPS)2 11.63 6.86 12.03 16.29 16.40
Share price1, 3 290.07 240.00 222.66 236.65 227.00
Valuation Ratio
P/BV ratio4 24.94 35.01 18.51 14.53 13.84
Benchmarks
P/BV Ratio, Competitors5
AbbVie Inc. 29.97 15.52 16.53 14.18
Bristol-Myers Squibb Co. 3.35 4.88 4.07 3.55 2.80
Danaher Corp. 3.47 3.64 4.16 3.93 3.72
Eli Lilly & Co. 65.80 29.36 25.28 35.07 51.67
Gilead Sciences Inc. 4.01 4.90 3.65 4.33 3.93
Johnson & Johnson 5.48 5.37 5.90 6.72 6.61
Merck & Co. Inc. 8.68 6.07 5.05 7.46 7.83
Pfizer Inc. 1.75 2.48 3.35 2.98 3.00
Regeneron Pharmaceuticals Inc. 3.96 3.77 3.60 4.81 3.79
Thermo Fisher Scientific Inc. 4.57 4.83 5.18 5.15 4.16
Zoetis Inc. 16.81 18.08 20.55 20.97 25.42
P/BV Ratio, Sector
Pharmaceuticals, Biotechnology & Life Sciences 6.92 5.79 5.89 6.16 5.90
P/BV Ratio, Industry
Health Care 5.24 4.78 4.89 4.68 4.49

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 Data adjusted for splits and stock dividends.

2 2023 Calculation
BVPS = Stockholders’ equity ÷ No. shares of common stock outstanding
= 6,232,000,000 ÷ 535,918,901 = 11.63

3 Closing price as at the filing date of Amgen Inc. Annual Report.

4 2023 Calculation
P/BV ratio = Share price ÷ BVPS
= 290.07 ÷ 11.63 = 24.94

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company required rate of return and its actual rate of return. Amgen Inc. P/BV ratio increased from 2021 to 2022 but then slightly decreased from 2022 to 2023 not reaching 2021 level.