Using the industry peer median P/E multiple (trailing + forward), Amgen Inc. (AMGN) has a fair value of $321.92 based on 7 comparable companies in the Drug Manufacturers - General industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Amgen Inc.AMGN | 191,077 | 24.8x | 15.7x |
| Merck & Co., Inc.MRK | 294,783 | 16.4x | 23.3x |
| Gilead Sciences, Inc.GILD | 170,903 | 20.3x | 15.9x |
| Novo Nordisk A/SNVO | 161,919 | 10.9x | 12.1x |
| Pfizer Inc.PFE | 156,770 | 20.3x | 9.3x |
| Danaher CorporationDHR | 133,264 | 37.4x | 22.4x |
| Bristol-Myers Squibb CompanyBMY | 121,119 | 17.2x | 9.5x |
| Boston Scientific CorporationBSX | 105,082 | 36.5x | 20.4x |
| Industry Median | 20.3x | 15.9x | |
| (*) Profit after tax | 7,711 | 12,145 | |
| Equity Value | 156,318 | 192,642 | |
| (/) Outstanding shares | 542 | 542 | |
| Fair Price | $288 | $355 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.