Amgen Inc, the global biotechnology pharmaceutical leader is overvalued, along with most leading pharmaceutical companies, which are striving to be biotechnology companies.
According to Wolfteam Ltd.'s corporate view, Amgen Inc's intrinsic worth is 105 billion USD compared with Amgen's current 140.42 billion USD market capitalization.
At an average revenue growth rate of 4 % for the last 5 years Amgen Inc seems overvalued.
Amgen is very profitable indeed with an average net profit margin of circa 28 % for the last 5 calendar years and with a Price/Earning of approximately 18 Amgen might on the first glance look even slightly undervalued.
But developing new, innovative and hopefully blockbuster drugs is difficult and the slowly growing Amgen's revenue proves Amgen is having difficulties developing new, blockbuster high growth drugs.
On the base of that and the maturity of Amgen, Wolfteam Ltd.'s view is that Amgen is overvalued by circa 34 %.
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