Is Amgen, Inc. overvalued or undervalued?

As of 5 August 2025, the valuation grade for Amgen, Inc. moved from fair to attractive, indicating a positive shift in its perceived value. The company appears to be undervalued based on its strong financial metrics, including a P/E ratio of 22, a PEG ratio of 0.27, and an EV to EBITDA ratio of 14.13. In comparison to peers, Amgen's P/E of 19.10 is notably lower than Gilead Sciences, which has a P/E of 15.53, suggesting that Amgen may be a more appealing investment.
Despite recent underperformance against the S&P 500, with a 1-year return of -17.15% compared to the index's 17.14%, the long-term outlook remains promising, as evidenced by a 3-year return of 19.33% versus the S&P 500's 70.41%. Overall, these factors support the conclusion that Amgen, Inc. is undervalued in the current market.