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Amgen Inc. (AMGN)

Common Stock Valuation Ratios (Price Multiples)
Quarterly Data

Difficulty: Beginner

  • Annual Data
  • Quarterly Data

    • 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).

    Historical Valuation Ratios (Summary)

    Amgen Inc., historical price multiples (quarterly data)

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    Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 Sep 30, 2014 Jun 30, 2014 Mar 31, 2014 Dec 31, 2013 Sep 30, 2013 Jun 30, 2013 Mar 31, 2013
    Price to earnings (P/E) 52.69 52.13 64.06 15.67 15.70 15.16 16.03 14.24 17.32 16.55 15.95 19.03 23.01 21.63 22.96 24.74 19.39 17.92 18.69 – – –
    Price to operating profit (P/OP) 12.16 11.45 12.71 12.55 12.46 11.99 12.64 11.56 14.06 13.50 13.07 15.51 19.05 18.03 19.13 20.42 15.82 14.61 16.19 – – –
    Price to sales (P/S) 5.65 5.27 5.82 5.85 5.85 5.48 5.65 5.01 5.97 5.60 5.28 5.89 6.65 6.22 6.13 6.38 5.18 4.60 5.22 – – –
    Price to book value (P/BV) 8.35 7.41 5.02 3.98 4.05 3.91 4.14 3.51 4.27 4.16 3.94 4.38 4.87 4.66 4.59 4.77 3.98 3.72 4.30 4.10 3.85 4.10
    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.'s P/E ratio declined from Q4 2017 to Q1 2018 but then slightly increased from Q1 2018 to Q2 2018.
    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.'s P/OP ratio declined from Q4 2017 to Q1 2018 but then increased from Q1 2018 to Q2 2018 not reaching Q4 2017 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.'s P/S ratio declined from Q4 2017 to Q1 2018 but then increased from Q1 2018 to Q2 2018 not reaching Q4 2017 level.
    P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company's required rate of return and its actual rate of return. Amgen Inc.'s P/BV ratio increased from Q4 2017 to Q1 2018 and from Q1 2018 to Q2 2018.

    Price to Earnings (P/E)

    Amgen Inc., historical P/E calculation (quarterly data)

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    Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 Sep 30, 2014 Jun 30, 2014 Mar 31, 2014 Dec 31, 2013 Sep 30, 2013 Jun 30, 2013 Mar 31, 2013
    No. shares of common stock outstanding1 647,272,067 661,706,007 720,562,246 725,910,575 729,674,773 735,399,128 736,452,791 743,922,473 748,360,906 751,217,078 752,091,038 754,327,866 758,250,346 760,323,664 758,861,306 760,670,000 759,607,230 757,021,648 755,007,290 754,126,197 753,356,209 749,976,556
    Selected Financial Data (USD $)
    Net income (in millions) 2,296  2,311  (4,264) 2,021  2,151  2,071  1,935  2,017  1,870  1,900  1,800  1,863  1,653  1,623  1,294  1,244  1,547  1,073  1,021  1,368  1,258  1,434 
    Earnings per share (EPS)3 3.65 3.35 2.75 11.27 11.20 10.73 10.49 10.20 9.93 9.61 9.23 8.53 7.67 7.51 6.80 6.42 6.59 6.23 6.73 – – –
    Share price1, 2 192.44 174.83 175.94 176.52 175.89 162.72 168.05 145.18 172.03 158.99 147.15 162.31 176.44 162.38 156.05 158.88 127.88 111.75 125.79 118.27 105.22 106.48
    P/E ratio4 52.69 52.13 64.06 15.67 15.70 15.16 16.03 14.24 17.32 16.55 15.95 19.03 23.01 21.63 22.96 24.74 19.39 17.92 18.69 – – –

    1 Data adjusted for splits and stock dividends.

    2 Close price on the filing date of Amgen Inc.'s Quarterly or Annual Report.

    Q2 2018 Calculations

    3 EPS = (Net incomeQ2 2018 + Net incomeQ1 2018 + Net incomeQ4 2017 + Net incomeQ3 2017) ÷ No. shares of common stock outstanding
    = (2,296,000,000 + 2,311,000,000 + -4,264,000,000 + 2,021,000,000) ÷ 647,272,067 = 3.65

    4 P/E ratio = Share price ÷ EPS
    = 192.44 ÷ 3.65 = 52.69

    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.'s P/E ratio declined from Q4 2017 to Q1 2018 but then slightly increased from Q1 2018 to Q2 2018.

    Price to Operating Profit (P/OP)

    Amgen Inc., historical P/OP calculation (quarterly data)

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    Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 Sep 30, 2014 Jun 30, 2014 Mar 31, 2014 Dec 31, 2013 Sep 30, 2013 Jun 30, 2013 Mar 31, 2013
    No. shares of common stock outstanding1 647,272,067 661,706,007 720,562,246 725,910,575 729,674,773 735,399,128 736,452,791 743,922,473 748,360,906 751,217,078 752,091,038 754,327,866 758,250,346 760,323,664 758,861,306 760,670,000 759,607,230 757,021,648 755,007,290 754,126,197 753,356,209 749,976,556
    Selected Financial Data (USD $)
    Operating income (in millions) 2,832  2,726  2,245  2,439  2,698  2,591  2,485  2,527  2,380  2,402  2,033  2,339  2,076  2,022  1,459  1,466  1,902  1,364  1,187  1,688  1,550  1,442 
    Operating profit per share3 15.82 15.28 13.84 14.07 14.12 13.57 13.30 12.56 12.23 11.78 11.26 10.47 9.26 9.01 8.16 7.78 8.08 7.65 7.77 – – –
    Share price1, 2 192.44 174.83 175.94 176.52 175.89 162.72 168.05 145.18 172.03 158.99 147.15 162.31 176.44 162.38 156.05 158.88 127.88 111.75 125.79 118.27 105.22 106.48
    P/OP ratio4 12.16 11.45 12.71 12.55 12.46 11.99 12.64 11.56 14.06 13.50 13.07 15.51 19.05 18.03 19.13 20.42 15.82 14.61 16.19 – – –

    1 Data adjusted for splits and stock dividends.

    2 Close price on the filing date of Amgen Inc.'s Quarterly or Annual Report.

    Q2 2018 Calculations

    3 Operating profit per share = (Operating incomeQ2 2018 + Operating incomeQ1 2018 + Operating incomeQ4 2017 + Operating incomeQ3 2017) ÷ No. shares of common stock outstanding
    = (2,832,000,000 + 2,726,000,000 + 2,245,000,000 + 2,439,000,000) ÷ 647,272,067 = 15.82

    4 P/OP ratio = Share price ÷ Operating profit per share
    = 192.44 ÷ 15.82 = 12.16

    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.'s P/OP ratio declined from Q4 2017 to Q1 2018 but then increased from Q1 2018 to Q2 2018 not reaching Q4 2017 level.

    Price to Sales (P/S)

    Amgen Inc., historical P/S calculation (quarterly data)

    Microsoft Excel LibreOffice Calc
    Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 Sep 30, 2014 Jun 30, 2014 Mar 31, 2014 Dec 31, 2013 Sep 30, 2013 Jun 30, 2013 Mar 31, 2013
    No. shares of common stock outstanding1 647,272,067 661,706,007 720,562,246 725,910,575 729,674,773 735,399,128 736,452,791 743,922,473 748,360,906 751,217,078 752,091,038 754,327,866 758,250,346 760,323,664 758,861,306 760,670,000 759,607,230 757,021,648 755,007,290 754,126,197 753,356,209 749,976,556
    Selected Financial Data (USD $)
    Product sales (in millions) 5,679  5,343  5,569  5,453  5,574  5,199  5,663  5,516  5,474  5,239  5,329  5,516  5,225  4,874  5,174  4,848  4,949  4,356  4,799  4,647  4,595  4,151 
    Sales per share3 34.06 33.16 30.25 30.15 30.08 29.71 29.73 28.98 28.81 28.37 27.85 27.56 26.54 26.10 25.47 24.91 24.69 24.30 24.10 – – –
    Share price1, 2 192.44 174.83 175.94 176.52 175.89 162.72 168.05 145.18 172.03 158.99 147.15 162.31 176.44 162.38 156.05 158.88 127.88 111.75 125.79 118.27 105.22 106.48
    P/S ratio4 5.65 5.27 5.82 5.85 5.85 5.48 5.65 5.01 5.97 5.60 5.28 5.89 6.65 6.22 6.13 6.38 5.18 4.60 5.22 – – –

    1 Data adjusted for splits and stock dividends.

    2 Close price on the filing date of Amgen Inc.'s Quarterly or Annual Report.

    Q2 2018 Calculations

    3 Sales per share = (Product salesQ2 2018 + Product salesQ1 2018 + Product salesQ4 2017 + Product salesQ3 2017) ÷ No. shares of common stock outstanding
    = (5,679,000,000 + 5,343,000,000 + 5,569,000,000 + 5,453,000,000) ÷ 647,272,067 = 34.06

    4 P/S ratio = Share price ÷ Sales per share
    = 192.44 ÷ 34.06 = 5.65

    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.'s P/S ratio declined from Q4 2017 to Q1 2018 but then increased from Q1 2018 to Q2 2018 not reaching Q4 2017 level.

    Price to Book Value (P/BV)

    Amgen Inc., historical P/BV calculation (quarterly data)

    Microsoft Excel LibreOffice Calc
    Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 Sep 30, 2014 Jun 30, 2014 Mar 31, 2014 Dec 31, 2013 Sep 30, 2013 Jun 30, 2013 Mar 31, 2013
    No. shares of common stock outstanding1 647,272,067 661,706,007 720,562,246 725,910,575 729,674,773 735,399,128 736,452,791 743,922,473 748,360,906 751,217,078 752,091,038 754,327,866 758,250,346 760,323,664 758,861,306 760,670,000 759,607,230 757,021,648 755,007,290 754,126,197 753,356,209 749,976,556
    Selected Financial Data (USD $)
    Stockholders' equity (in millions) 14,909  15,620  25,241  32,229  31,722  30,637  29,875  30,773  30,133  28,682  28,083  27,967  27,484  26,506  25,778  25,325  24,382  22,741  22,096  21,728  20,594  19,491 
    Book value per share (BVPS)3 23.03 23.61 35.03 44.40 43.47 41.66 40.57 41.37 40.27 38.18 37.34 37.08 36.25 34.86 33.97 33.29 32.10 30.04 29.27 28.81 27.34 25.99
    Share price1, 2 192.44 174.83 175.94 176.52 175.89 162.72 168.05 145.18 172.03 158.99 147.15 162.31 176.44 162.38 156.05 158.88 127.88 111.75 125.79 118.27 105.22 106.48
    P/BV ratio4 8.35 7.41 5.02 3.98 4.05 3.91 4.14 3.51 4.27 4.16 3.94 4.38 4.87 4.66 4.59 4.77 3.98 3.72 4.30 4.10 3.85 4.10

    1 Data adjusted for splits and stock dividends.

    2 Close price on the filing date of Amgen Inc.'s Quarterly or Annual Report.

    Q2 2018 Calculations

    3 BVPS = Stockholders' equity ÷ No. shares of common stock outstanding
    = 14,909,000,000 ÷ 647,272,067 = 23.03

    4 P/BV ratio = Share price ÷ BVPS
    = 192.44 ÷ 23.03 = 8.35

    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's required rate of return and its actual rate of return. Amgen Inc.'s P/BV ratio increased from Q4 2017 to Q1 2018 and from Q1 2018 to Q2 2018.