Amgen Inc. (NASDAQ:AMGN)

Price to Earnings (P/E) Ratio

The Price to Earnings ratio fluctuated moderately from March 2021 through December 2022, ranging between approximately 16 and 23. Beginning in March 2023, there was a noticeable increase, peaking sharply at around 54 in June 2024. Following this peak, a downward trend emerged, reducing the ratio to approximately 23 by June 2025. This pattern suggests a period of heightened market valuation relative to earnings in mid-2024, followed by a recalibration toward lower valuation levels.

Price to Operating Profit (P/OP) Ratio

The Price to Operating Profit ratio exhibited a general decline from early 2021 through late 2022, decreasing from about 15.3 to 13.4. Starting in early 2023, the ratio increased substantially, reaching a peak above 27 between mid-2024 and late 2024, indicating a significant rise in price relative to operating profit during this period. Afterward, the ratio declined again to below 19 by mid-2025, reflecting reduced market optimism or improved operating profitability relative to price.

Price to Sales (P/S) Ratio

The Price to Sales ratio demonstrated relative stability across the entire span, generally fluctuating between 4.5 and 6. There was a slight upward drift early in 2024, peaking near 5.9, before declining gradually toward 4.6 by mid-2025. Compared to other valuation metrics, this ratio showed less pronounced volatility, implying steady market valuation against sales.

Price to Book Value (P/BV) Ratio

The Price to Book Value ratio showed a notable anomaly in the first quarter of 2022, soaring dramatically from around 18 at the end of 2021 to approximately 139. This spike was followed by a sharp decline over the subsequent quarters, settling near 35 by the end of 2022. From 2023 onward, the ratio continued trending downward gradually to around 20 by mid-2025, with intermittent moderate fluctuations. The initial spike suggests an extraordinary event or revaluation impacting book value or price, after which normalization occurred.

Summary of Trends

Overall, valuation multiples experienced significant variability, particularly in P/E and P/OP ratios from late 2022 through 2024, indicating periods of changing investor expectations or operational performance. The P/BV ratio highlights an exceptional fluctuation in early 2022, contrasting with more stable behavior in the P/S ratio. Toward mid-2025, all metrics generally show a downward adjustment from their respective peaks, implying a normalization or correction in market valuations relative to the company's financial measures.

Share Price Trend

The share price demonstrated moderate volatility throughout the observed periods. Initially, from March 2021 to December 2021, the price showed a downward trend, declining from $236.71 to $222.66. From early 2022 to the end of that year, the price recovered and experienced an upward trajectory, peaking at around $269 in September 2022 before a decline at year-end. The price continued to rise from early 2023 through the third quarter, reaching a peak of $320.16 in September 2024. Subsequently, a noticeable decrease occurred, with the share price falling to $284.67 by June 2025. Overall, the share price reflects periods of growth interspersed with declines, indicating market sensitivity during these quarters.

Earnings Per Share (EPS) Analysis

EPS showed some fluctuations but with a general upward trend in the first half of the timeline. From March 2021 to December 2021, EPS ranged between 9.96 and 12.33, indicating some volatility but relative stability. In 2022 and early 2023, EPS values remained generally elevated, peaking at 14.92 in June 2023. However, a sharp decline occurred starting in late 2023, reaching the lowest point of 5.83 in June 2024. Following this trough, EPS rebounded steadily, reaching 12.29 by June 2025. This pattern suggests intermittent challenges affecting profitability during late 2023 and early 2024, followed by a recovery phase.

Price-to-Earnings (P/E) Ratio Insights

The P/E ratio exhibited considerable variation over the observed timeframe. It began at 19.2 in March 2021 and generally oscillated around the low twenties throughout 2021 and 2022, with occasional dips below 20, indicating moderate market valuation relative to earnings. Notably, from early 2023 through mid-2024, the ratio escalated significantly, peaking at 53.65 in June 2024. This spike suggests that the market valuation increased disproportionately compared to earnings, likely influenced by the sharp decline in EPS during this period. Subsequently, the P/E ratio declined to about 23.15 by June 2025, aligning more closely with historical levels. This reversion indicates a normalization of market expectations in relation to earnings performance.

Combined Interpretation

The data indicates a period of relative stability and growth through 2021 and 2022 in both earnings and share price. The decline in EPS around late 2023 to mid-2024, coupled with a dramatic increase in the P/E ratio, suggests temporary challenges impacting profitability while market valuation remained elevated, possibly reflecting optimistic future outlooks or market speculation. The subsequent recovery in EPS and correction in the P/E ratio to lower levels is indicative of an improvement in financial performance and a recalibration of market valuation. Share price movements generally correspond with these fundamentals, to a degree, but also show independent fluctuations likely influenced by broader market conditions.

The financial data reveals several noteworthy trends regarding the share price, operating profit per share, and the price to operating profit ratio over the analyzed periods.

Share Price

The share price shows a moderate overall upward trend from March 2021 through June 2025. Initial fluctuations are observed, with a decline from a high around 236.71 USD in early 2021 to below 220 USD by late 2021. Following this period, the share price recovers and steadily increases, peaking at approximately 320.16 USD in September 2024. After this peak, some volatility occurs with a slight decline towards June 2025, stabilizing around 284.67 USD. This suggests growth in market valuation, with some short-term volatility in recent quarters.

Operating Profit per Share

The operating profit per share exhibits a volatile but generally stable trend. Starting at 15.51 USD in March 2021, it declines to lower levels around 13 USD by the end of 2021. It then rises to a peak near 18.07 USD in September 2022, followed by a gradual decline through 2023 and most of 2024, reaching lows near 11.52 USD. A recovery trend is noticeable in late 2024 into 2025, with values climbing back above 15 USD. This pattern indicates cyclical profitability, with recent improvements suggesting potential operational enhancements or market conditions positively impacting profit generation.

Price to Operating Profit Ratio (P/OP)

The P/OP ratio demonstrates considerable variability. It decreases from about 15.26 in March 2021 to a low around 13.4 in December 2022, indicating that the share price was relatively undervalued compared to operating profit at that time. However, from 2023 onward, the ratio rises significantly, peaking near 27.68 in late 2024. This increase implies market expectations growing stronger relative to operating earnings, possibly reflecting optimism or higher future growth assumptions. Toward mid-2025, the ratio declines somewhat, suggesting a market correction or adjustment in investor sentiment.

Overall, the data indicates a company experiencing phases of profitability fluctuation and share price growth, with market valuation metrics reflecting changing investor perceptions over time. The recent recovery in operating profit per share alongside elevated but decreasing P/OP ratios suggests a transition phase with cautious optimism regarding future performance.

The company's share price demonstrated variability over the analyzed quarterly periods, showing an initial decline from $236.71 to $218.13 between March and September 2021, followed by a recovery and a peak at $320.16 in September 2024. Subsequently, the share price experienced a modest decline, settling around $284.67 by June 2025. This pattern suggests periods of market adjustment succeeded by strong upward momentum, albeit with some recent softening.

Sales per share exhibited consistent growth throughout the periods, rising steadily from $41.66 in March 2021 to $62.25 in June 2025. This upward trajectory indicates ongoing revenue expansion on a per-share basis, reflecting positively on the company's operational performance and market demand.

The price-to-sales (P/S) ratio showed fluctuations that indicate changing market valuations relative to sales. Starting at 5.68 in March 2021, the ratio generally decreased to a low point of 4.57 by June 2025, despite some intermittent increases reaching as high as 5.93 in March 2024. The declining trend in the P/S ratio toward the end of the period suggests that the market price grew at a slower pace relative to sales, potentially indicating improved sales performance or a normalization of market valuation metrics.

Share Price Trend

Initial decline followed by a strong rise hitting a peak near late 2024, with a slight downward adjustment thereafter.

Sales per Share Trend

Consistently increasing sales per share, reflecting solid revenue growth over the period.

Price-to-Sales Ratio Trend

Fluctuated but generally declined, indicating the market valuation per unit of sales decreased moderately after peaking in early 2024.

Overall, the data reveals a company experiencing growing sales and increasing shareholder value despite some volatility in market price. The reduction in the P/S ratio towards the end of the period may warrant attention, as it could signal either valuation normalization or accelerated sales growth outpacing share price appreciation.

Share Price Trend

The share price exhibited moderate fluctuations over the observed periods. Initially, there was a decline from approximately 237 US dollars to a low around 218 US dollars in late 2021. Subsequently, the price rebounded, reaching a peak near 320 US dollars by the third quarter of 2024. However, a slight decrease occurred thereafter, with prices moving down to the mid-280 US dollar range toward mid-2025. Overall, the share price shows a recovery and growth after an initial dip.

Book Value Per Share (BVPS)

BVPS displayed notable volatility. It started at approximately 16.25 US dollars in early 2021, followed by a sharp decline to around 1.71 US dollars by the first quarter of 2022. After this drop, BVPS demonstrated a gradual recovery over subsequent quarters, peaking again near 14 US dollars in late 2024. There is some variance towards the end of the timeline, but the general direction from early 2022 onwards is upward, suggesting improvement in underlying book value after a significant setback.

Price to Book Value Ratio (P/BV)

The P/BV ratio showed extreme variation, strongly influenced by the fluctuations in book value per share. Initially, this ratio was in the range of 14 to 19, consistent with common market valuations. However, during the first quarter of 2022, coinciding with the drastic fall in BVPS, the ratio surged dramatically to above 130, then quickly dropped back below 60 in mid-2022. Afterwards, the ratio stabilized somewhat but remained elevated relative to early periods, generally fluctuating between 17 and 35, indicating that the share price was valued several times higher than the book value throughout most periods after early 2022.

Insights

The data suggests an initial period of instability in book value per share, which heavily impacted valuation multiples. The severe drop in BVPS in early 2022 likely reflects significant accounting or operational events, affecting shareholder equity. Despite this, share price recovered and even grew substantially, indicating market confidence in future prospects or earnings potential. The relatively high P/BV ratios post-recovery imply that the market valued the company at a premium compared to its book value, reflecting expectations beyond net asset value. The combination of recovering book value and rising share price points toward improving fundamentals or successful strategic initiatives over the observed periods.