New data reinforces Repatha's strong cardiovascular risk reduction in high-risk diabetes patients. This strengthens its market position and potential for continued growth in a significant therapeutic area.

↑Late-Stage Pipeline Strength

Amgen highlighted its robust late-stage pipeline at the Jefferies conference. This suggests a strong future product portfolio, mitigating reliance on current blockbusters.

↑AI Integration in Drug Development

The company's emphasis on AI gains indicates a commitment to innovation. This could lead to more efficient drug discovery and development, creating a competitive edge.

INVESTMENT RISKS

↓Patent Expirations and Competition

While not explicitly mentioned, Amgen, like all biotechs, faces the perpetual risk of patent expirations. This can lead to generic competition and revenue erosion for key products.

↓Regulatory Scrutiny and Approval Hurdles

The pharmaceutical industry is heavily regulated. Delays or rejections in drug approvals can significantly impact Amgen's growth trajectory and financial performance.

↓Pipeline Execution Uncertainty

Despite a strong pipeline, there's inherent risk in drug development. Not all promising candidates will reach market successfully, impacting future revenue streams.

Base case

AMGN base case PE valuation

A base case PE valuation for AMGN estimates a fair value of about $352.22 per share, against a current price of $355.2. The model assumes 5.2% annual earnings growth, a 25x target PE multiple, and a 10% discount rate.

Intrinsic Value

$352.22

Margin of safety

-0.8%

Expected annual return

-0.2%

Base case assumptions: 5.2% annual earnings growth, 25x target PE, 10% discount rate, 5 year projection. Data as of 2026-06-12.

This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.

Customize the AMGN PE valuation

Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Amgen Inc. respond.

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Company Overview

Amgen Inc., established in 1980 and headquartered in Thousand Oaks, California, is a global biotechnology leader focused on discovering, developing, manufacturing, and delivering groundbreaking human medicines. The company's scientific endeavors span several critical therapeutic categories, including inflammatory conditions, oncology and hematology, bone health, cardiovascular diseases, nephrology, and neuroscience. Its extensive portfolio features a range of significant pharmaceutical products. Notable examples include Enbrel, prescribed for conditions like plaque psoriasis, rheumatoid arthritis, and psoriatic arthritis; Neulasta, which helps cancer patients by reducing the risk of infection linked to a low white blood cell count; Prolia, utilized in postmenopausal women to combat osteoporosis; and Xgeva, designed to prevent skeletal-related complications. Otezla offers relief for adult patients suffering from plaque psoriasis, psoriatic arthritis, and oral ulcers associated with Behçet's disease. Aranesp addresses anemia and low red blood cell counts, while KYPROLIS is employed to treat patients with relapsed or refractory multiple myeloma. Furthermore, Repatha plays a vital role in lowering the incidence of major cardiovascular events such as myocardial infarction, stroke, and coronary revascularization. Amgen's comprehensive product lineup also encompasses Nplate, Vectibix, MVASI, Parsabiv, EPOGEN, KANJINTI, BLINCYTO, Aimovig, EVENITY, AMGEVITATM, Sensipar/Mimpara, NEUPOGEN, IMLYGIC, Corlanor, and AVSOLA. The company distributes its therapies worldwide, primarily serving healthcare providers, including physicians and their clinics, dialysis centers, hospitals, and pharmacies. Distribution is facilitated through pharmaceutical wholesale distributors, complemented by direct-to-consumer channels. Amgen actively engages in strategic collaborations. It has partnered with entities such as Novartis Pharma AG, UCB, Bayer HealthCare LLC, BeiGene, Ltd., Eli Lilly and Company, Datos Health, and Verastem, Inc., to jointly assess VS-6766 when combined with lumakrastm (Sotorasib) in patients with KRAS G12C-mutant non-small cell lung cancer. Another key alliance involves Kyowa Kirin Co., Ltd., for the co-development and commercialization of KHK4083, a Phase 3-ready anti-OX40 fully human monoclonal antibody targeting atopic dermatitis and other autoimmune conditions. Additionally, Amgen maintains research and development partnerships with Neumora Therapeutics, Inc. and Plexium, Inc.

Financial Metrics — AMGN PE Stock Valuation Data

PE Ratio (TTM)

24.6x

PEG Ratio

0.79

Earnings Yield

4.07%

ROE (TTM)

89.4%

Revenue/Share (TTM)

$68.96

Dividend Yield

2.76%

Debt/Equity

6.24x

Frequently Asked Questions

What is the PE ratio of AMGN?

The trailing twelve-month PE ratio of AMGN reflects how much investors pay per dollar of Amgen Inc.'s earnings. This metric is most useful when compared to Drug Manufacturers - General peers and the company's own historical range.

Is AMGN overvalued based on PE ratio?

AMGN's PE of 24.6x combined with a PEG ratio of 0.79 provides a growth-adjusted perspective. A PEG below 1.0 suggests AMGN may be undervalued relative to its earnings growth rate. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Drug Manufacturers - General, a DCF analysis may be more appropriate.

How do I value AMGN stock using PE ratio?

To value Amgen Inc. using PE: (1) Compare the current PE (24.6x) against the Drug Manufacturers - General median to assess relative pricing, (2) check the PEG ratio (0.79) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.

What is the PEG ratio of AMGN?

AMGN's PEG ratio is 0.79, calculated by dividing the PE ratio (24.6x) by the expected earnings growth rate. A PEG below 1.0 is traditionally considered a sign of undervaluation — the market may not be fully pricing in the growth potential. Note that PEG accuracy depends on the reliability of growth estimates.

Should I use PE ratio or DCF for AMGN stock valuation?

PE ratio gives a quick relative read — how AMGN is priced versus Drug Manufacturers - General peers. DCF provides an absolute value based on projected free cash flows. For AMGN, with a strong ROE of 89.4%, both methods are worth using — PE for a market-relative check, DCF to stress-test whether fundamentals justify the price. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.

Learn More

See AMGN DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
PE Methodology — Step-by-step guide to PE ratio stock valuation
DCF Methodology — Guide to discounted cash flow analysis
PE Ratio — Understanding the price-to-earnings ratio
Intrinsic Value — How to evaluate stock fair value

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P/E and DCF value AMGN with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.

Price as of 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.

This is an estimate, not investment advice.