Using the PEG framework with analyst consensus forward EPS growth of 16.8% plus 2.7% dividend yield, Amgen Inc. has a fair value of $376.48 based on NTM EPS (FY2026) of $22.41. The current PEG ratio is 0.94.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG works well for steady growers with predictable earnings.
| EPS Growth RateForward | 14.1% |
| Dividend Yield | +2.7% |
| Adjusted Growth (clamped 8–25%) | 16.8% |
| Fair P/E | 16.8x |
| NTM EPS (FY2026) | $22.41 |
| Fair Value | $376.48 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $14.23 | — | — |
| FY2026E | $22.41 | +57.5% | 24 |
| FY2027E | $23.35 | +4.2% | 23 |
| FY2028E | $24.22 | +3.7% | 26 |
| FY2029E | $25.48 | +5.2% | 25 |
| FY2030E | $27.53 | +8.0% | 15 |
5Y Forward EPS CAGR: 14.1%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $5.9B | $10.28 | — |
| FY2022 | $6.6B | $12.11 | +17.8% |
| FY2023 | $6.7B | $12.49 | +3.1% |
| FY2024 | $4.1B | $7.56 | -39.5% |
| FY2025 | $7.7B | $14.23 | +88.2% |
4Y Historical EPS CAGR: 8.5%
The PEG Fair Value uses the Price/Earnings-to-Growth framework. A stock is fairly valued when its P/E ratio equals its earnings growth rate (PEG = 1.0). This model adds dividend yield to the growth rate per the original PEGY formula.
Growth rate priority: analyst consensus forward EPS CAGR (when ≥ 3 analysts cover the stock), falling back to historical EPS CAGR. Using EPS rather than net income avoids distortion from share buybacks. The growth rate is clamped between 8% and 25% — below 8% would undervalue stable earners, while above 25% would overvalue unsustainable spikes.