Latest Ratios: P/E Ratio 28.5x · EV/EBITDA 16.7x · ROE 106.1%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $219.2B | $177.4B | $141.0B | $155.0B | $142.1B | $128.9B | $135.7B | $146.8B | $129.5B | $127.8B | $110.2B |
| Enterprise Value | $264.6B | $222.9B | $189.1B | $208.6B | $173.4B | $154.2B | $162.4B | $170.7B | $156.4B | $159.4B | $141.6B |
| P/E Ratio → | 28.54 | 23.00 | 34.48 | 23.06 | 21.69 | 21.88 | 18.68 | 18.72 | 15.43 | 64.65 | 14.28 |
| P/S Ratio | 5.97 | 4.83 | 4.22 | 5.50 | 5.40 | 4.96 | 5.34 | 6.28 | 5.45 | 5.59 | 4.80 |
| P/B Ratio | 25.42 | 20.49 | 23.99 | 24.86 | 38.81 | 19.24 | 14.42 | 15.18 | 10.36 | 5.06 | 3.69 |
| P/FCF | 27.06 | 21.90 | 13.57 | 21.06 | 16.17 | 15.38 | 13.72 | 17.21 | 12.26 | 12.16 | 11.58 |
| P/OCF | 22.01 | 17.82 | 12.27 | 18.29 | 14.62 | 13.92 | 12.92 | 16.04 | 11.46 | 11.44 | 10.65 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 6.07 | 5.66 | 7.40 | 6.59 | 5.94 | 6.39 | 7.31 | 6.59 | 6.97 | 6.16 |
| EV / EBITDA | 16.70 | 14.07 | 14.72 | 17.43 | 13.36 | 13.97 | 12.75 | 14.37 | 12.81 | 13.36 | 11.90 |
| EV / EBIT | 24.79 | 19.00 | 24.36 | 19.44 | 19.81 | 19.53 | 17.28 | 16.37 | 14.30 | 14.62 | 13.59 |
| EV / FCF | — | 27.52 | 18.20 | 28.35 | 19.74 | 18.40 | 16.42 | 20.00 | 14.82 | 15.16 | 14.88 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 70.8% | 70.8% | 61.5% | 70.1% | 75.7% | 75.2% | 75.8% | 81.4% | 82.7% | 82.2% | 81.9% |
| Operating Margin | 29.1% | 29.1% | 21.7% | 28.0% | 36.3% | 29.4% | 35.9% | 41.4% | 43.2% | 43.6% | 42.6% |
| Net Profit Margin | 21.0% | 21.0% | 12.2% | 23.8% | 24.9% | 22.7% | 28.6% | 33.6% | 35.3% | 8.7% | 33.6% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 106.1% | 106.1% | 67.6% | 135.8% | 126.5% | 73.2% | 76.1% | 70.7% | 44.5% | 7.2% | 26.6% |
| ROA | 8.5% | 8.5% | 4.3% | 8.3% | 10.4% | 9.5% | 11.8% | 12.4% | 11.5% | 2.5% | 10.4% |
| ROIC | 14.8% | 14.8% | 9.6% | 12.5% | 21.4% | 16.8% | 19.7% | 19.9% | 16.0% | 12.7% | 12.6% |
| ROCE | 16.0% | 16.0% | 9.8% | 12.3% | 19.4% | 15.2% | 18.6% | 19.4% | 16.6% | 14.5% | 15.1% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 6.31 | 6.31 | 10.23 | 10.37 | 10.64 | 4.97 | 3.51 | 3.09 | 2.71 | 1.40 | 1.16 |
| Debt / EBITDA | 3.45 | 3.45 | 4.68 | 5.40 | 3.00 | 3.02 | 2.59 | 2.52 | 2.78 | 2.96 | 2.91 |
| Net Debt / Equity | — | 5.25 | 8.19 | 8.61 | 8.55 | 3.78 | 2.84 | 2.47 | 2.16 | 1.25 | 1.05 |
| Net Debt / EBITDA | 2.87 | 2.87 | 3.75 | 4.48 | 2.41 | 2.29 | 2.10 | 2.01 | 2.21 | 2.64 | 2.64 |
| Debt / FCF | — | 5.61 | 4.63 | 7.29 | 3.56 | 3.02 | 2.70 | 2.80 | 2.56 | 3.00 | 3.29 |
| Interest Coverage | 4.26 | 4.26 | 2.46 | 3.73 | 6.22 | 6.60 | 7.44 | 8.09 | 7.86 | 8.36 | 8.27 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.14 | 1.14 | 1.26 | 1.65 | 1.41 | 1.59 | 1.81 | 1.44 | 2.79 | 5.49 | 4.11 |
| Quick Ratio | 0.90 | 0.90 | 0.95 | 1.13 | 1.10 | 1.26 | 1.48 | 1.16 | 2.57 | 5.17 | 3.86 |
| Cash Ratio | 0.36 | 0.36 | 0.52 | 0.60 | 0.59 | 0.66 | 0.91 | 0.69 | 2.17 | 4.62 | 3.40 |
| Asset Turnover | — | 0.41 | 0.36 | 0.29 | 0.40 | 0.42 | 0.40 | 0.39 | 0.36 | 0.29 | 0.30 |
| Inventory Turnover | 1.72 | 1.72 | 1.84 | 0.88 | 1.30 | 1.58 | 1.58 | 1.22 | 1.39 | 1.44 | 1.52 |
| Days Sales Outstanding | — | 95.07 | 81.91 | 102.83 | 88.63 | 82.04 | 64.96 | 63.39 | 55.03 | 51.71 | 50.25 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 2.3% | 2.9% | 3.4% | 2.9% | 3.0% | 3.1% | 2.8% | 2.4% | 2.7% | 2.6% | 2.7% |
| Payout Ratio | 66.5% | 66.5% | 118.1% | 67.8% | 64.0% | 68.1% | 51.7% | 44.7% | 41.8% | 170.0% | 38.8% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.5% | 4.3% | 2.9% | 4.3% | 4.6% | 4.6% | 5.4% | 5.3% | 6.5% | 1.5% | 7.0% |
| FCF Yield | 3.7% | 4.6% | 7.4% | 4.7% | 6.2% | 6.5% | 7.3% | 5.8% | 8.2% | 8.2% | 8.6% |
| Buyback Yield | 0.0% | 0.0% | 0.1% | 0.0% | 4.5% | 3.9% | 2.6% | 5.2% | 13.7% | 2.5% | 2.7% |
| Total Shareholder Yield | 2.3% | 2.9% | 3.6% | 2.9% | 7.4% | 7.0% | 5.3% | 7.6% | 16.5% | 5.1% | 5.4% |
| Shares Outstanding | — | $542M | $541M | $538M | $541M | $573M | $590M | $609M | $665M | $735M | $754M |
Includes 30+ ratios · 30 years · Updated daily
Live VCP patterns, Cup & Handle overlays, support/resistance, and AI trade plans.
High-probability breakout stocks crossing their pivot across 5 pattern engines.
Bull/bear thesis, analyst target revisions, and earnings execution.
DCF models, multiple analysis, and analyst estimates.
10-year return with dividends reinvested.
Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying AMGN stock.
Amgen Inc.'s current P/E ratio is 28.5x. The historical average is 26.9x. This places it at the 72th percentile of its historical range.
Amgen Inc.'s current EV/EBITDA is 16.7x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 17.6x.
Amgen Inc.'s return on equity (ROE) is 106.1%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 39.1%.
Based on historical data, Amgen Inc. is trading at a P/E of 28.5x. This is at the 72th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Amgen Inc.'s current dividend yield is 2.33% with a payout ratio of 66.5%.
Amgen Inc. has 70.8% gross margin and 29.1% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Amgen Inc.'s Debt/EBITDA ratio is 3.4x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.
Key Metrics
Top Statement Risk
High leverage and IRA exposure
Metrics are mathematically derived from official filings.
Margin Expansion Signals Mix Shift
Gross margin improved to 72.0% in Q2 2026 from 67.2% a year earlier, per financial statements, suggesting a favorable product mix shift toward higher-margin rare disease and growth assets.
The 470 basis point year-over-year gross margin expansion in Q2 2026, as reported in SEC filings, appears to reflect the growing contribution of the Horizon portfolio and other high-margin products, while operating margin surged to 35.0% from 28.8%, indicating strong operating leverage. However, the quarterly volatility in net margin (ranging from -1.5% in Q1 2024 to 33.7% in Q3 2025) suggests that non-operating items, such as acquisition-related charges, distort underlying profitability, so investors should focus on gross and operating margins as cleaner indicators of earning power.
ROIC Recovery Masks Capital Intensity
ROIC improved to 4.8% in Q2 2026 from 1.2% in Q1 2024, per reported figures, but remains below the cost of capital, reflecting the heavy capital deployed in the Horizon acquisition.
Despite the sequential improvement, ROIC of 4.8% in Q2 2026 is still modest relative to peers like Vertex (23.0%) and Regeneron (8.9%), as per the peer table, suggesting that Amgen's M&A-driven growth has yet to generate returns that exceed its cost of capital. The trend in ROE, which swung from -2.0% in Q1 2024 to 22.8% in Q2 2026, is heavily influenced by the equity base rebuilding from a low of $5.0B, so the more stable ROIC metric indicates that the company is still in the early stages of realizing returns on its large intangible asset base.
Working Capital Efficiency Improves
Cash conversion cycle turned negative to -84 days in Q2 2026 from 304 days in Q1 2024, as per financial statements, driven by a sharp increase in days payable outstanding to 372.
The dramatic shift in CCC is primarily due to DPO jumping from 46 days in Q1 2024 to 372 days in Q2 2026, which appears to reflect extended payment terms with suppliers, possibly a deliberate strategy to conserve cash given the high debt load. However, this improvement is not purely operational; DSO has remained relatively stable around 75-98 days, and DIO has fluctuated, so the negative CCC may indicate that Amgen is using supplier financing to manage liquidity, which could reverse if payment terms are normalized. Asset turnover remains low at 0.11, consistent with a capital-intensive biomanufacturing model, but the efficiency gains in working capital are a positive sign for cash generation.
Leverage Eases but Debt Overhang Persists
Debt-to-equity fell to 4.90 in Q2 2026 from 12.75 in Q1 2024, per reported figures, as equity nearly doubled, but total debt of $57.3B remains elevated, keeping interest coverage at 5.11.
The deleveraging trend is encouraging, with D/E declining from 12.75 to 4.90 over ten quarters, driven by retained earnings rebuilding equity, but the absolute debt level is still substantial, and D/EBITDA of 16.65 in Q2 2026 is high relative to peers like Gilead (13.06) and Bristol-Myers (9.53), as per the peer table. Interest coverage improved to 5.11 from 0.92 in Q1 2024, indicating that earnings are now more comfortably covering interest expense, but the company remains sensitive to rising rates, and the inclusion of Enbrel in IRA negotiations could pressure cash flows, warranting close monitoring of refinancing risk.
Liquidity Buffer Strengthens
Current ratio improved to 1.37 in Q2 2026 from 1.42 in Q1 2024, with cash rising to $14.0B, per reported data, indicating a solid liquidity position despite high leverage.
The quick ratio of 1.13 in Q2 2026, up from 0.98 in Q1 2024, suggests that Amgen can cover short-term obligations without relying on inventory sales, which is reassuring given the high fixed-cost base. However, the liquidity cushion is modest relative to the $57.3B debt load, and the negative CCC implies that the company is effectively using supplier credit to fund operations, which could tighten if payment terms are renegotiated. Under a severe stress scenario, such as a sudden drop in revenue from IRA price concessions, the current ratio could deteriorate, but the $14.0B cash balance provides a buffer for near-term obligations.
Misapplied Metric: P/E on GAAP Earnings
The P/E ratio is commonly misapplied to Amgen because GAAP earnings are depressed by acquisition-related amortization, making the forward P/E of 18.33 a more accurate reflection of earning power, as per reported data.
Amgen's TTM P/E of 29.36 appears elevated, but this is largely due to non-cash amortization from the Horizon and Otezla acquisitions, which reduces GAAP net income but not cash flows. Investors should instead use EV/EBITDA (17.10) or P/FCF (27.84) to assess valuation, as these metrics adjust for non-cash charges and better capture the company's cash-generating ability. The forward P/E of 18.33, based on analyst estimates, suggests the market is already pricing in the earnings recovery, but the high PEG of 9.98 indicates that the implied growth rate is modest, so the valuation may not fully reflect the potential upside from MariTide or the durability of the biosimilar franchise.