Is Amgen, Inc. overvalued or undervalued?

As of 1 May 2025, the valuation grade for Amgen, Inc. has moved from expensive to fair. The company is currently fairly valued based on its financial metrics. Key ratios include a P/E ratio of 22, an EV to EBITDA of 14.13, and a PEG ratio of 0.27, indicating strong growth potential relative to its price.
In comparison to peers, Amgen's P/E ratio of 21.64 is more favorable than Gilead Sciences, which is considered very expensive at a P/E of 14.29, and Biogen, which is attractive at a P/E of 12.66. Notably, Amgen's ROE stands at an impressive 116.13%, suggesting efficient use of equity capital. While Amgen's recent stock performance has lagged behind the S&P 500 over the past year, its valuation metrics suggest it is positioned well within its industry.