* Note: Prices are in Million (M) USD.
Description:
Amgen Inc. (formerly Applied Molecular Genetics Inc.) is an American multinational biopharmaceutical company headquartered in Thousand Oaks, California. Focused on molecular biology and biochemistry, its goal is to provide a healthcare business based on recombinant DNA technology.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $0 M
Debt : $0 M
EBITDA : $16,510 M
Since Cash is greater than Total Debt, 5 points assigned.
This criteria used industry in which company operates:
Sector: Healthcare
Industry: Biotechnology
Biotechnology detected → treating as non-Technology. 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 15.84
Since Forward PE Ratio is between 15 - 20, 3 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Error: Invalid cash flow data provided.Using default values for calculation.
Based on default values, 1 points assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2025-12-31): $36,741 M
Revenue 5 Years Ago (2020-12-31): $25,424 M
Total Growth over 5 Years: 44.5%
5-Year Revenue CAGR (Historical): 7.6%
Forward 5-Year CAGR (Tapered): 6.9%
Since historical Revenue CAGR is between 5 - 10, 2 points assigned.
This criteria used Company's ability to buy back its own share:
Error: Invalid balance sheet data provided.Using default values for calculation.
Based on default values, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $24.40
Trailing 12-Month Earnings Per Share (EPS): $23.04
Average Earnings Per Share (EPS): $23.72
Dividend Per Share (DPS): $10
Payout Ratio: 41%
Dividend Yield: 2.60%
Since company Payout Ratio is less than 50, 2 points assigned.
Since Dividend Yield is greater than 2, 2 points assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Error: Invalid balance sheet data provided.Skipping ROE-based PE.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $375.65
52-Week Low: $262.49
Threshold Price (15% Above 52-Week Low): $301.86
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $206,251 M
Since Market Cap is between 100B - 500B, 3 points assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 4% exposure of Total Portfolio.
Warren Buffett's Owners' Earnings:
No positive free cash flow found (TTM or annual) to compute Owners' Earnings per share.
Note: Many fast-growing companies reinvest heavily, so Owners' Earnings may appear low.
Consider other factors in your valuation.
Value-Trade has assigned 21 points to above Amgen Inc (AMGN) stock.
Last 20 Years Avg PE
10.79, Fair Value PE
15, Industry Based PE
15, Growth Based PE
15, Risk-Free Anchored PE (25% MoS)
16.03. Based on these 5 values, average assigned is
14.36. Value-Trades has assined P/E value
14.36. An average (Current Year EPS + Next Year EPS) earning per share is
$23.7223.
Fair value using multiple P/Es (blended): $340.73 (PE 14.36 × EPS $23.72)
So the Final Fair Value is: $340.73
Understanding the Value-Trades P/E Blend (click to expand)
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What goes into the blended P/E?
- 20-Year Avg P/E — Long-run market baseline; conservative anchor.
- Fair Value P/E — Score-based (cash, debt, sector, etc.).
- Industry P/E — Peer group norm.
- Growth-Based P/E — Uses tapered growth rates, floored at 15.
- RCFC-Based P/E — Maps cash conversion efficiency.
- ROE-Based P/E — Higher ROE supports higher multiples.
- Risk-Free Anchored P/E — Macro floor tied to 10y yield w/ MoS.
How it works
- Extreme values are clamped/filtered (IQR method).
- Anchors (20y avg, RCFC/ROE, risk-free) are always kept if valid.
- Final fair value = min(Blended PE × EPS, Avg PE × EPS).
P/E Reference Summary
Using EPS: $23.72
| Source |
P/E Ratio |
Implied Fair Value |
| Market (1 Yr Ago) | 14.68 | $348.24 |
| 20 Yrs Avg-PE | 10.79 | $255.96 |
| Value-Trades Assigned | 14.36 | $340.65 |
