Amgen Inc. (NASDAQ:AMGN)

The financial data presents an analysis of key valuation ratios over a series of quarterly periods. These ratios include Price to Earnings (P/E), Price to Operating Profit (P/OP), Price to Sales (P/S), and Price to Book Value (P/BV), each providing insights into the company’s market valuation relative to its earnings, operating profit, sales, and book value, respectively.

Price to Earnings (P/E) Ratio

The P/E ratio started at 19.2 and showed a moderate increase to a peak of 22.56 within the first half of 2021. Following this, there was a decline through late 2021 and early 2022, reaching a low of 16.18 in the first quarter of 2023. Subsequently, the ratio rose substantially to a high of 53.65 in mid-2024, before gradually decreasing and stabilizing around the mid-20s by late 2025. This pattern suggests fluctuating investor expectations of future earnings growth, with notable optimism or valuation spikes around 2024, followed by a normalization phase.

Price to Operating Profit (P/OP) Ratio

The P/OP ratio mirrored a similar trend to the P/E ratio, beginning at 15.26 and increasing moderately up to 17.48 by mid-2021. A downward trend was evident through 2022 into early 2023, bottoming near 13.4. This was followed by a strong upward movement, reaching a peak of approximately 27.68 in late 2024. Afterward, the ratio decreased steadily to around 18.71 by late 2025. This indicates variations in the market’s valuation of operating performance, with peaks potentially reflecting heightened expectations of profitability or an increase in market premium during late 2023 and 2024.

Price to Sales (P/S) Ratio

The P/S ratio displayed less pronounced volatility compared to the earnings and operating profit multiples. It began at 5.68 in early 2021, generally tapered slightly with minor fluctuations through 2022 and 2023, reaching a modest low near 4.57 in late 2025. The ratio’s relative stability implies consistent valuation relative to revenue over the period, with some compression in later periods possibly related to slower sales growth or changes in market sentiment.

Price to Book Value (P/BV) Ratio

The P/BV ratio exhibited the most dramatic fluctuations among the reported ratios. Starting at 14.57 in early 2021, it surged sharply to an exceptionally high level of 138.87 in early 2022, followed by a rapid decline to around 35.01 by the end of 2022. From 2023 onwards, a general downward trend continued, with some intermittent increases, stabilizing around 17.91 by late 2025. Such pronounced swings may reflect significant changes in the company's book value, market capitalization, or investor perception of asset value, possibly influenced by write-downs, revaluations, or major corporate events during 2022.

Overall, the data reveals periods of heightened valuation across multiple metrics, particularly during 2023 and 2024, followed by a return toward more normalized levels by late 2025. These trends suggest evolving investor expectations and shifting perceptions of the company's earnings quality, operating profitability, revenue stability, and asset base throughout the examined timeframe.

The financial data reveals several notable trends in share price, earnings per share (EPS), and the price-to-earnings (P/E) ratio over the observed periods.

Share Price

The share price exhibits moderate volatility but maintains an overall upward trajectory throughout the timeline. Starting from around $236.71, it experiences fluctuations with peaks and troughs but reaches above $319.86 towards the last reported period. The data shows some significant upward momentum especially from early 2023 onward, with a notable peak at $320.16 in late 2024 before a slight decline and recovery to $319.86. This pattern indicates a generally positive market perception with occasional corrections.

Earnings per Share (EPS)

EPS displays considerable variability over the periods. Initially, EPS shows a slight downward trend from 12.33 to single-digit figures around late 2021 and early 2022. A recovery occurs in 2023 with EPS rising to mid-teens, peaking approximately at 14.92, but afterward, there is a sharp drop starting in early 2024 to a low of 5.83. The earnings performance recovers again by the end of 2025, reaching 13.01. This volatility implies fluctuating profitability, potentially due to operational or market-related factors impacting net income.

Price-to-Earnings (P/E) Ratio

The P/E ratio fluctuates significantly, reflecting the interplay between share price trends and EPS variations. Initially, P/E ratios range between approximately 19 and 22 during 2021 and early 2022. As EPS falls in early 2024, the P/E ratio spikes dramatically, reaching a high of 53.65, which suggests the market price remained relatively high despite lower earnings. Subsequently, the P/E lowers but remains elevated relative to early periods, indicating investor willingness to value the stock at higher multiples, potentially due to anticipated future growth or other qualitative factors.

Overall, the data depict a company experiencing episodic earnings volatility alongside a generally appreciating share price. The elevated and variable P/E ratios signal changing investor sentiment and possibly expectations of future earnings growth, despite temporary dips in profitability. The financial metrics collectively hint at a dynamic environment with underlying growth potential tempered by periods of earnings uncertainty.

The analysis of the quarterly financial indicators reveals several notable trends over the observed period.

Share Price

The share price experienced fluctuations but generally showed an upward trajectory from early 2021 through 2025. It started around $236.71 and saw some decline through late 2021 reaching lows near $218.13, before recovering and increasing to peaks above $311 in early 2024. Following this peak, the price showed some volatility but remained relatively high, reaching approximately $320 by early 2025. Overall, the share price demonstrated phases of growth interspersed with moderate corrections.

Operating Profit per Share

The operating profit per share showed variability over the quarters, with values ranging typically between $11.52 and $18.07 during the period. Initially, it declined from a high near $15.51 in early 2021 to a lower point near $11.52 in mid-2024. Subsequently, there was a gradual recovery into 2025, with the metric increasing again to approximately $16.10. This pattern suggests an operational performance subject to both headwinds and recovery phases.

Price to Operating Profit Ratio (P/OP)

The P/OP ratio exhibited considerable variation, moving inversely to changes in operating profit per share relative to share price. Initially, the ratio hovered around 15 to 17 but increased sharply from early 2023 onward, peaking at nearly 28 in late 2024. This peak indicates that the share price increased disproportionately compared to operating profit during that period. Toward 2025, this ratio declined to about 19.86, reflecting either an improvement in operating profit, a correction in share price, or a combination of both.

In summary, the data indicates a company experiencing cyclical operational performance alongside a generally appreciating share price. The rising P/OP ratio in the latter years points to heightened market expectations or valuation adjustments, even as operating profitability saw some decline before partial recovery. This suggests a need to monitor whether profitability improvements will sustain or if valuation pressures might recalibrate further.

Share Price Trend

The share price exhibited a fluctuating yet generally upward trend over the period analyzed. Initially, prices showed a decline from approximately $236.71 to $218.13 within 2021, followed by a recovery and growth through 2022 and early 2023, reaching a peak near $320.16. A minor decrease followed in late 2024 and mid-2025, but the overall trend suggests positive momentum with the share price rising from the low 200s to the upper 300s range.

Sales per Share Evolution

Sales per share demonstrated a consistent and steady growth throughout the entire period. Beginning at $41.66, this metric incremented gradually each quarter, reaching $64.06 by the end of the timeframe. This pattern indicates steady revenue growth on a per-share basis, reflecting increasing operational performance or sales efficiency over time.

Price-to-Sales (P/S) Ratio Analysis

The P/S ratio showed significant variation across the quarters. Early in the dataset, the ratio decreased from 5.68 to around 5.04, then oscillated between approximately 5.1 and 5.85, displaying cyclical movements consistent with fluctuations in share price relative to sales per share. Notably, after peaking in early 2023 at around 5.93, the ratio declined gradually to the mid-4 range by mid-2025, suggesting that share price growth may not be keeping pace with increasing sales per share towards the end of the period.

Overall Observations

The data points to a company experiencing steady growth in its sales per share, accompanied by share price volatility but an overall increase. The decreasing trend in the P/S ratio in the latter periods could imply that the market is valuing the company more conservatively relative to its sales, or that sales growth is beginning to outpace stock price appreciation. The combination of rising sales per share and a relatively stable to decreasing P/S ratio may indicate improving underlying business performance alongside more cautious market sentiment or valuation adjustments.

The analysis of the quarterly financial data reveals notable fluctuations and trends in the share price, book value per share (BVPS), and the price-to-book value (P/BV) ratio over the observed periods.

Share Price

The share price demonstrates a general upward trend from March 2021 to September 2025, with fluctuations within this timeframe. Initially, the price showed a slight decline from $236.71 to $218.13 in Q3 2021, followed by recovery and growth peaking around $320.16 in Q3 2024. After this peak, a downward adjustment is observed in late 2024 and early 2025, with prices fluctuating in the high $280-$320 range by September 2025. The share price exhibits a pattern of recovery after dips, indicating resilience and investor confidence throughout these quarters.

Book Value Per Share (BVPS)

The BVPS trend shows significant variability over the periods. From March 2021 through December 2021, BVPS decreased notably from $16.25 to $12.03, followed by an abrupt drop to $1.71 in March 2022. Subsequently, a steady recovery is observed, with BVPS climbing to $14.31 by September 2023. Despite some fluctuations, the general pattern after the trough in early 2022 is positive, with BVPS reaching a high of $17.86 by September 2025. This recovery phase indicates improvements in the company's net asset value relative to its shares outstanding.

Price-to-Book Value Ratio (P/BV)

The P/BV ratio exhibits extreme volatility, especially in the early 2022 period, where it spikes dramatically to 138.87 in March 2022, followed by a marked decline to 35.01 by December 2022. This spike corresponds with the reduced BVPS in the same period, inflating the ratio significantly. After this period of volatility, the ratio stabilizes somewhat and trends downwards from levels above 30 in early 2024 to below 20 by September 2025. This indicates a normalization of market valuation relative to the book value as BVPS recovers and share price growth moderates.

In summary, the company experienced a phase of declining book value and distorted valuation ratios around early 2022, followed by progressive recovery in book value and stabilization of the valuation multiples. Share prices generally appreciated with intermittent corrections, reflecting market response to underlying asset value improvements and overall financial health enhancements over the analyzed quarters.