Amgen Inc. (AMGN) Stock Valuation — PE Analysis
Drug Manufacturers - General · NASDAQ
Current Price
$383.80
PE Ratio (TTM)
26.5x
Intrinsic Value
$369.67
-3.8% margin of safety
COMPETITIVE MOAT
↑Patented Blockbuster Drugs
Amgen possesses a portfolio of highly successful, patented drugs like Enbrel. These patents create significant barriers to entry for competitors, ensuring sustained revenue streams.
↑Extensive R&D Pipeline
A robust research and development pipeline allows Amgen to continuously innovate and bring new, high-demand therapies to market. This fuels future growth and maintains market leadership.
↑Manufacturing Scale and Expertise
Amgen's advanced manufacturing capabilities and scale provide cost advantages and ensure reliable supply of complex biologics. This is difficult for smaller players to replicate.
INVESTMENT RISKS
↓Clinical Trial Failures
The success of Amgen relies heavily on its R&D pipeline. Failure of key drugs in clinical trials could significantly impact future revenue and growth prospects.
↓Intense Biopharmaceutical Competition
The biopharmaceutical industry is highly competitive, with numerous companies vying for market share. Amgen faces constant pressure from both established players and emerging biotech firms.
↓Geopolitical and Economic Instability
Global economic downturns or geopolitical events can disrupt supply chains, impact healthcare spending, and affect drug demand. This creates uncertainty for Amgen's operations and financial performance.
Base case
AMGN base case PE valuation
At a current price of $383.8, the base case PE valuation puts AMGN fair value near $369.67 per share. That figure assumes 4.9% yearly earnings growth, a target PE multiple of 27x, and a 10% discount rate.
Intrinsic Value
$369.67
Margin of safety
-3.8%
Expected annual return
-0.7%
Base case assumptions: 4.9% annual earnings growth, 27x target PE, 10% discount rate, 5 year projection. Data as of 2026-07-30.
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.
Open PE Calculator for AMGNCompany 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)
26.5x
PEG Ratio
0.85
Earnings Yield
3.76%
ROE (TTM)
89.4%
Revenue/Share (TTM)
$68.96
Dividend Yield
2.55%
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 26.5x combined with a PEG ratio of 0.85 provides a growth-adjusted perspective. A PEG below 1.0 means the P/E is low relative to the 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 (26.5x) against the Drug Manufacturers - General median to assess relative pricing, (2) check the PEG ratio (0.85) 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 0.85, calculated by dividing the PE ratio (26.5x) by the expected earnings growth rate. A PEG below 1.0 means the P/E is low relative to the expected earnings growth rate. 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
Related PE Valuations
All Healthcare valuationsP/E and DCF value AMGN with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-07-30. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.