Stock Analysis on Net
Stock Analysis on Net

Amgen Inc. (NASDAQ:AMGN)

Price to FCFE (P/FCFE) 

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Free Cash Flow to Equity (FCFE)

Amgen Inc., FCFE calculation

US$ in millions

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12 months ended: Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Net income 6,717 6,552 5,893 7,264 7,842
Net noncash charges 2,238 3,902 4,562 3,449 2,039
Changes in operating assets and liabilities, net of acquisitions (484) (733) (1,194) (216) (731)
Net cash provided by operating activities 8,471 9,721 9,261 10,497 9,150
Purchases of property, plant and equipment (1,112) (936) (880) (608) (618)
Net proceeds from issuance of debt 27,777 6,919 4,945 8,914 —
Extinguishment of debt (647) (297) — — —
Repayment of debt (1,454) — (4,150) (6,450) (4,514)
Free cash flow to equity (FCFE) 33,035 15,407 9,176 12,353 4,018

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Item Description The company
FCFE Free cash flow to equity is the cash flow available to Amgen Inc. equity holders after all operating expenses, interest, and principal payments have been paid and necessary investments in working and fixed capital have been made. Amgen Inc. FCFE increased from 2021 to 2022 and from 2022 to 2023.

Price to FCFE Ratio, Current

Amgen Inc., current P/FCFE calculation, comparison to benchmarks

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No. shares of common stock outstanding 537,532,723
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions) 33,035
FCFE per share 61.46
Current share price (P) 279.95
Valuation Ratio
P/FCFE 4.56
Benchmarks
P/FCFE, Competitors1
AbbVie Inc. 16.47
Bristol-Myers Squibb Co. 9.01
Danaher Corp. 47.73
Eli Lilly & Co. 73.37
Gilead Sciences Inc. 15.29
Johnson & Johnson 23.74
Merck & Co. Inc. 18.32
Moderna Inc. —
Pfizer Inc. 3.49
Regeneron Pharmaceuticals Inc. 21.11
Thermo Fisher Scientific Inc. 28.39
P/FCFE, Sector
Pharmaceuticals, Biotechnology & Life Sciences 16.08
P/FCFE, Industry
Health Care 16.45

Based on: 10-K (reporting date: 2023-12-31).

1 Click competitor name to see calculations.

If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.

Price to FCFE Ratio, Historical

Amgen Inc., historical P/FCFE calculation, comparison to benchmarks

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Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
No. shares of common stock outstanding1 535,918,901 533,976,238 557,029,370 577,566,383 589,806,819
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)2 33,035 15,407 9,176 12,353 4,018
FCFE per share3 61.64 28.85 16.47 21.39 6.81
Share price1, 4 290.07 240.00 222.66 236.65 227.00
Valuation Ratio
P/FCFE5 4.71 8.32 13.52 11.06 33.32
Benchmarks
P/FCFE, Competitors6
AbbVie Inc. 17.37 22.66 18.76 13.16 3.64
Bristol-Myers Squibb Co. 7.52 22.85 16.17 7.80 5.80
Danaher Corp. 53.08 32.04 20.75 44.62 6.88
Eli Lilly & Co. 75.06 60.51 35.17 36.62 15.87
Gilead Sciences Inc. 12.81 15.22 12.70 5.98 15.91
Johnson & Johnson 24.31 16.73 23.28 15.60 23.06
Merck & Co. Inc. 24.48 22.40 18.72 17.85 18.08
Moderna Inc. — 12.24 4.62 31.68 —
Pfizer Inc. 3.82 10.56 8.88 — 9.87
Regeneron Pharmaceuticals Inc. 26.52 19.29 10.35 13.30 21.00
Thermo Fisher Scientific Inc. 31.16 27.98 13.44 18.58 46.04
P/FCFE, Sector
Pharmaceuticals, Biotechnology & Life Sciences 17.23 19.02 15.27 17.30 11.46
P/FCFE, Industry
Health Care 16.99 18.08 16.76 17.08 13.39

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 Data adjusted for splits and stock dividends.

2 See details »

3 2023 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 33,035,000,000 ÷ 535,918,901 = 61.64

4 Closing price as at the filing date of Amgen Inc. Annual Report.

5 2023 Calculation
P/FCFE = Share price ÷ FCFE per share
= 290.07 ÷ 61.64 = 4.71

6 Click competitor name to see calculations.

Valuation ratio Description The company
P/FCFE Price to free cash flow to equity is cash valuation indicator of stockholders’ equity. Amgen Inc. P/FCFE ratio decreased from 2021 to 2022 and from 2022 to 2023.