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Disclaimer: The blog posts and comments on this blog and posts on social networks are not investment recommendation, are provided solely for informational purposes, and do not constitute an offer or solicitation to buy or sell any securities. The opinions expressed on the blog are Petar Posledovich's. Petar Posledovich does not guarantee the accuracy of the information presented on this blog and social networks. The information presented is "as is". The blog is stocks analysis and valuation, Bitcoin, Cryptocurrencies, Artificial Intelligence, AI, deep-learning focused. Independent, unbiased AI insights. Petar Vladimirov Posledovich is not liable for any investment losses incurred by reading and interpreting blog posts on this blog and posts on social networks. Conflicts of interest: I may possess some of the securities, currencies or their derivatives mentioned in the blog post and posts on social networks! The blog is property of Wolfteam Ltd. www.wolfteamedge.com Respectfully yours, Petar Posledovich

Saturday, August 12, 2023

Amgen Valuation

 


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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