Is Amgen, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Amgen, Inc. moved from expensive to attractive, indicating a shift towards a more favorable assessment. The company appears undervalued based on its current metrics, with a P/E ratio of 22, a PEG ratio of 0.27, and an EV to EBITDA ratio of 14.13, suggesting that the stock is priced lower relative to its growth potential compared to peers. In comparison to its peer Gilead Sciences, Inc., which has a P/E of 15.53 and an EV to EBITDA of 11.81, Amgen's valuation metrics reflect a more attractive investment opportunity. Additionally, Amgen's return over the past year shows a decline of 7.01%, contrasting with the S&P 500's gain of 14.08%, which highlights the potential for recovery given its current valuation. Overall, Amgen's strong ROE of 116.13% and solid dividend yield of 3.18% further support the case for its undervaluation.