Amgen Inc. (NASDAQ:AMGN)

The valuation ratios exhibit varied trends over the observed period. Initially, from March 2022 through December 2022, a general pattern of decline or stabilization is noted across most ratios. Subsequently, a period of significant fluctuation and, in some cases, substantial increases occurs, particularly from March 2023 through December 2023. More recently, from March 2024 through December 2025, the ratios demonstrate a degree of stabilization, though at generally elevated levels compared to the earlier observation period.

Price to Earnings (P/E) Ratio

The P/E ratio decreased from 22.23 in March 2022 to 19.56 in December 2022. A subsequent decline to 16.18 in March 2023 was followed by a marked increase, peaking at 53.65 in June 2024. The ratio then moderated, settling at 25.81 by December 2025. This suggests a period of increased investor optimism followed by a recalibration.

Price to Operating Profit (P/OP) Ratio

Similar to the P/E ratio, the P/OP ratio experienced a decline through December 2022, moving from 15.88 to 13.40. It then increased, reaching 19.69 in December 2023, before peaking at 27.68 in September 2024. The ratio concluded the period at 21.92 in December 2025, indicating a sustained, though fluctuating, increase in valuation relative to operating profit.

Price to Sales (P/S) Ratio

The P/S ratio showed less dramatic fluctuation than the earnings-based ratios. It increased from 5.21 in March 2022 to 5.85 in September 2022, then decreased to 5.17 in December 2022. A relatively stable period followed, with the ratio fluctuating between approximately 5.14 and 5.78 through September 2024. A more noticeable increase is observed towards the end of the period, reaching 5.66 in December 2025.

Price to Book Value (P/BV) Ratio

The P/BV ratio exhibited the most substantial decline initially, falling from 138.87 in March 2022 to 35.01 in December 2022. This trend continued into mid-2023, reaching a low of 17.87 in September 2023. The ratio then increased, peaking at 33.25 in March 2024, before settling at 22.99 in December 2025. This suggests a significant re-evaluation of the company’s asset value relative to its market price.

Overall, the observed trends suggest a period of valuation compression through late 2022, followed by a period of expansion and increased volatility in 2023 and 2024. The ratios appear to be stabilizing in the most recent quarters, but remain at levels generally higher than those observed at the beginning of the analyzed timeframe.

The price-to-earnings (P/E) ratio exhibited fluctuating behavior over the observed period, spanning from March 31, 2022, to December 31, 2025. Initial values indicated a relatively stable range, followed by a period of increased volatility and a subsequent return towards more moderate levels.

Initial Period (Mar 31, 2022 – Dec 31, 2022)

The P/E ratio began at 22.23 and generally decreased through the end of 2022, reaching 19.56. This suggests a relative increase in earnings compared to the share price during this timeframe, or a modest decline in investor sentiment. The ratio remained within a narrow band of approximately 20 to 22 for most of this period.

Early 2023 – Mid 2023

The first half of 2023 saw the P/E ratio remain relatively stable, fluctuating between 16.18 and 16.31. This indicates a consistent relationship between share price and earnings during this period. A slight increase to 18.09 was observed by September 30, 2023, followed by a more substantial rise to 23.14 by the end of the year.

Significant Increase (Mar 31, 2024 – Jun 30, 2024)

A marked increase in the P/E ratio occurred in the first half of 2024, escalating from 44.38 to a peak of 53.65. This substantial rise suggests a significant increase in investor expectations relative to earnings, potentially driven by positive market sentiment or anticipated future growth. The share price increased at a faster rate than earnings during this period.

Subsequent Moderation (Sep 30, 2024 – Dec 31, 2025)

Following the peak in June 2024, the P/E ratio experienced a decline, settling at 25.81 by December 31, 2025. While still elevated compared to earlier periods, this decrease indicates a recalibration of investor expectations or an increase in earnings relative to the share price. The ratio fluctuated between approximately 38 and 41 in late 2024 and early 2025 before trending downwards.

Overall, the observed trend suggests a period of relative stability, followed by increased volatility and a subsequent moderation in the P/E ratio. The significant increase in the first half of 2024 warrants further investigation to understand the underlying drivers of investor sentiment and earnings expectations.

The Price to Operating Profit (P/OP) ratio for the analyzed period demonstrates considerable fluctuation. Initially, the ratio exhibited a decreasing trend from March 31, 2022, to December 31, 2022, followed by a period of volatility and then a notable increase towards the end of the observed timeframe.

Initial Decreasing Trend (Mar 31, 2022 – Dec 31, 2022)

From 15.88 in March 2022, the P/OP ratio generally declined to reach 13.40 by December 2022. This suggests that the share price decreased at a faster rate than operating profit per share during this period, or that operating profit per share grew at a faster rate than the share price. The decline was not monotonic, with a slight increase observed in September 2022 before resuming the downward trend.

Volatility and Subsequent Increase (Mar 31, 2023 – Dec 31, 2023)

The ratio experienced volatility in the first half of 2023, fluctuating between 14.25 and 13.71. However, a significant increase was observed in the latter half of 2023, culminating in a P/OP ratio of 19.69 in December 2023. This indicates a substantial increase in the share price relative to operating profit per share, or a decrease in operating profit per share relative to the share price.

Continued High Values and Recent Trends (Mar 31, 2024 – Dec 31, 2025)

The P/OP ratio remained elevated in early 2024, peaking at 27.68 in September 2024. A subsequent decrease was observed, falling to 21.92 by December 2025. While still higher than the values observed in 2022, the ratio demonstrates a moderating trend in the most recent quarters. The increase from 21.92 in December 2024 to 21.92 in December 2025 is minimal, suggesting a stabilization of the relationship between share price and operating profit per share.

Overall, the P/OP ratio has demonstrated a significant increase over the analyzed period, particularly in the latter half of 2023 and into 2024. While a slight decrease is observed towards the end of the period, the ratio remains substantially higher than its initial values, indicating a potentially changing investor sentiment or fundamental shifts in the company’s valuation.

The price-to-sales (P/S) ratio exhibited fluctuating behavior over the observed period, spanning from March 31, 2022, to December 31, 2025. Initially, the ratio demonstrated an increasing trend, peaking in September 2022, followed by a decline through December 2022. Subsequently, the ratio experienced a period of relative stability in the first half of 2023 before rising again towards the end of 2023. A subsequent decrease was observed in early 2024, followed by a period of fluctuation, and then a notable increase through the end of 2025.

Initial Trend (March 31, 2022 – September 30, 2022)

The P/S ratio increased from 5.21 to 5.85, indicating a growing investor willingness to pay for each dollar of sales. This increase suggests positive market sentiment regarding the company’s revenue generation capabilities during this period.

Subsequent Decline (September 30, 2022 – December 31, 2022)

A decrease in the P/S ratio from 5.85 to 5.17 was observed. This could be attributed to various factors, including broader market corrections, sector-specific concerns, or company-specific news impacting investor confidence.

Stabilization and Re-increase (January 1, 2023 – December 31, 2023)

The ratio remained relatively stable in the first half of 2023, around 5.14, before increasing to 5.78 by the end of the year. This suggests a potential recovery in investor sentiment or a reassessment of the company’s growth prospects.

Fluctuation and Final Increase (January 1, 2024 – December 31, 2025)

The P/S ratio experienced fluctuations throughout 2024, decreasing to a low of 4.61 in March 2025, before rising significantly to 5.66 by the end of 2025. This final increase indicates renewed investor optimism, potentially driven by improved financial performance or positive future outlooks. The increase from 4.61 to 5.66 represents a substantial shift in valuation.

Throughout the period, the P/S ratio remained generally within a range of 4.57 to 5.93, suggesting a relatively consistent valuation approach by the market, albeit with notable short-term variations. The observed trends warrant further investigation into the underlying factors driving these changes, including sales growth, profitability, and overall market conditions.

The Price to Book Value (P/BV) ratio for the analyzed period demonstrates a significant degree of fluctuation. Initially, the ratio exhibited a substantial decline, followed by a period of relative stability, and then a renewed increase towards the end of the observed timeframe.

Initial Decline (Mar 31, 2022 – Jun 30, 2023)

The P/BV ratio began at a high of 138.87 and experienced a dramatic decrease over the first six quarters, falling to 19.19 by June 30, 2023. This decline coincided with a substantial increase in Book Value Per Share (BVPS), suggesting that while the share price increased modestly, the underlying net asset value, as reflected in BVPS, grew at a much faster rate. This could indicate a correction from a previously overvalued position relative to book value.

Period of Stabilization (Sep 30, 2023 – Jun 30, 2024)

Following the initial decline, the P/BV ratio entered a period of relative stabilization, fluctuating between 17.87 and 33.25. While some variation occurred, the ratio remained within a narrower range compared to the previous period. This suggests a more balanced relationship between share price and book value during this time. BVPS continued to increase, but the share price also saw gains, keeping the ratio relatively contained.

Subsequent Increase (Sep 30, 2024 – Dec 31, 2025)

From September 30, 2024, the P/BV ratio began to increase again, reaching 22.99 by December 31, 2025. This increase occurred despite continued growth in BVPS, indicating that the share price experienced a more significant rate of increase. The ratio’s movement suggests growing investor optimism or a shift in market perception regarding the company’s future earnings potential relative to its net asset value.

Overall, the P/BV ratio’s trajectory suggests a dynamic valuation influenced by both changes in share price and underlying book value. The initial high ratio and subsequent decline may represent a market correction, while the later increase could reflect renewed investor confidence. The ratio ultimately moved from a high of 138.87 to a final value of 22.99 over the analyzed period.