Amgen discovers, develops, manufactures, and delivers human therapeutics worldwide. It focuses for the treatment of illness in the areas of oncology, hematology, inflammation, bone health, nephrology, cardiovascular, and general medicine. The company was founded in 1980 and is based in Thousand Oaks, California.
AMGN Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Amgen Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Amgen Inc ranked in the 41th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. The most interesting components of our discounted cash flow analysis for Amgen Inc ended up being:
The company has produced more trailing twelve month cash flow than 95% of its sector Healthcare.
Amgen Inc's weighted average cost of capital (WACC) is 7%; for context, that number is higher than just 21.38% of tickers in our DCF set.
AMGN's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than just 21.38% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Healthcare that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as AMGN, try DGX, STE, FONR, PRGO, and PAHC.
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