Amgen (NAS:AMGN) Cyclically Adjusted Book per Share

: $30.12 (As of Sep. 2023)

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E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Book per Share and the Cyclically Adjusted PB Ratio. The Cyclically Adjusted Book per Share is the average of the inflation adjusted Book Value per Share of a company over the past 10 years.

Amgen's adjusted book value per share for the three months ended in Sep. 2023 was $14.308. Add all the adjusted book value per share for the past 10 years together and divide the count will get our Cyclically Adjusted Book per Share, which is $30.12 for the trailing ten years ended in Sep. 2023.

During the past 12 months, Amgen's average Cyclically Adjusted Book Growth Rate was -4.10% per year. During the past 3 years, the average Cyclically Adjusted Book Growth Rate was -1.20% per year. During the past 5 years, the average Cyclically Adjusted Book Growth Rate was -0.50% per year. During the past 10 years, the average Cyclically Adjusted Book Growth Rate was 4.30% per year. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Cyclically Adjusted Book Growth Rate using Cyclically Adjusted Book per Share data.

During the past 13 years, the highest 3-Year average Cyclically Adjusted Book Growth Rate of Amgen was 38.80% per year. The lowest was -1.20% per year. And the median was 16.30% per year.

As of today (2023-12-03), Amgen's current stock price is $272.49. Amgen's Cyclically Adjusted Book per Share for the quarter that ended in Sep. 2023 was $30.12. Amgen's Cyclically Adjusted PB Ratio of today is 9.05.

During the past 13 years, the highest Cyclically Adjusted PB Ratio of Amgen was 9.43. The lowest was 3.91. And the median was 6.23.

Amgen Cyclically Adjusted Book per Share Historical Data

The historical data trend for Amgen's Cyclically Adjusted Book per Share can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Amgen Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Cyclically Adjusted Book per Share

31.96

31.87

31.06

31.46

30.75

Amgen Quarterly Data
	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23
Cyclically Adjusted Book per Share																31.40	30.75	30.68	30.44	30.12

Competitive Comparison

For the Drug Manufacturers - General subindustry, Amgen's Cyclically Adjusted PB Ratio, along with its competitors' market caps and Cyclically Adjusted PB Ratio data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Amgen Cyclically Adjusted PB Ratio Distribution

For the Drug Manufacturers industry and Healthcare sector, Amgen's Cyclically Adjusted PB Ratio distribution charts can be found below:

* The bar in red indicates where Amgen's Cyclically Adjusted PB Ratio falls into.

Amgen Cyclically Adjusted Book per Share Calculation

What is Cyclically Adjusted Book per Share? How do we calculate Cyclically Adjusted Book per Share?

Cyclically Adjusted Book per Share is the average of the inflation adjusted Book Value per Share of a company over the past 10 years. Let's use an example to explain.

If we want to calculate the Cyclically Adjusted Book per Share of Wal-Mart (WMT) for Dec. 31, 2010, we need to have the inflation data and the book value per share from 2001 through 2010.

We adjusted the 2001 book value per share data with the total inflation from 2001 through 2010 to the equivalent book value in 2010. If the total inflation from 2001 to 2010 is 40%, and Wal-Mart's book value is $1 a share in 2001, then the 2001's equivalent book value in 2010 is $1.4 a share. If Wal-Mart's book value is $1 again in 2002, and the total inflation from 2002 through 2010 is 35%, then the equivalent 2002 book value in 2010 is $1.35. So on and so forth, you get the equivalent book value per share of past 10 years. Then you add them together and divided the sum by the count to get Cyclically Adjusted Book per Share.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.

For example, Amgen's adjusted Book Value per Share data for the three months ended in Sep. 2023 was:

Adj_Book	=	Book Value per Share	/	CPI of Sep. 2023 (Change)	*	Current CPI (Sep. 2023)
	=	14.308	/	129.8595	*	129.8595
	=	14.308

Current CPI (Sep. 2023) = 129.8595.

Amgen Quarterly Data

	Book Value per Share	CPI	Adj_Book
201312	29.282	98.326	38.673
201403	30.045	99.695	39.136
201406	32.107	100.560	41.462
201409	33.296	100.428	43.054
201412	33.901	99.070	44.437
201503	34.858	99.621	45.439
201506	36.206	100.684	46.698
201509	37.047	100.392	47.921
201512	37.245	99.792	48.467
201603	38.176	100.470	49.343
201606	40.236	101.688	51.383
201609	41.317	101.861	52.674
201612	40.481	101.863	51.607
201703	41.621	102.862	52.545
201706	43.413	103.349	54.549
201709	44.356	104.136	55.313
201712	34.950	104.011	43.636
201803	23.439	105.290	28.909
201806	22.972	106.317	28.059
201809	22.403	106.507	27.315
201812	19.854	105.998	24.323
201903	17.630	107.251	21.347
201906	17.927	108.070	21.542
201909	18.328	108.329	21.971
201912	16.356	108.420	19.590
202003	16.131	108.902	19.235
202006	18.177	108.767	21.702
202009	18.781	109.815	22.209
202012	16.270	109.897	19.225
202103	16.225	111.754	18.854
202106	14.479	114.631	16.402
202109	14.543	115.734	16.318
202112	12.001	117.630	13.249
202203	1.715	121.301	1.836
202206	4.522	125.017	4.697
202209	6.847	125.227	7.100
202212	6.856	125.222	7.110
202303	10.009	127.348	10.206
202306	12.677	128.729	12.788
202309	14.308	129.860	14.308

Add all the adjusted book value per share together and divide the count will get our Cyclically Adjusted Book per Share.

Amgen (NAS:AMGN) Cyclically Adjusted Book per Share Explanation

If a company grows much fast than inflation, Cyclically Adjusted Book per Share may underestimate the company's equity. Cyclically Adjusted PB Ratio can seem to be too high even the actual PB Ratio is low.

For the Cyclically Adjusted PB Ratio, the book value of the past 10 years are inflation-adjusted and averaged. The result is used for P/B calculation. Since it looks at the average over the last 10 years, the Cyclically Adjusted PB Ratio is also called CAPB Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PB Ratio. The Cyclically Adjusted Book per Share is the average of the inflation adjusted book value per share of a company over the past 10 years.

Amgen's Cyclically Adjusted PB Ratio of today is calculated as

Cyclically Adjusted PB Ratio	=	Share Price	/	Cyclically Adjusted Book per Share
	=	272.49	/	30.12
	=	9.05

During the past 13 years, the highest Cyclically Adjusted PB Ratio of Amgen was 9.43. The lowest was 3.91. And the median was 6.23.

Be Aware

Cyclically Adjusted PB Ratio works better for cyclical companies. It gives you a better idea on the company's real book value.

Amgen Cyclically Adjusted Book per Share Related Terms

Thank you for viewing the detailed overview of Amgen's Cyclically Adjusted Book per Share provided by GuruFocus.com. Please click on the following links to see related term pages.

Amgen (NAS:AMGN) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Amgen Inc (NAS:AMGN) » Definitions » Cyclically Adjusted Book per Share

Comparable Companies

Traded in Other Exchanges

AMG N:Mexico AMGd:UK 0R0T:UK AMG:Germany AMG:Germany AMG:Germany AMG:Germany AMGN34:Brazil AMGN:Austria AMGN:Argentina

Address

One Amgen Center Drive, Thousand Oaks, CA, USA, 91320-1799

Website

https://www.amgen.com

Amgen is a leader in biotechnology-based human therapeutics, with historical expertise in renal disease and cancer supportive-care products. Flagship drugs include red blood cell boosters Epogen and Aranesp, immune system boosters Neupogen and Neulasta, and Enbrel and Otezla for inflammatory diseases. Amgen introduced its first cancer therapeutic, Vectibix, in 2006 and markets bone-strengthening drug Prolia/Xgeva (approved 2010) and Evenity (2019). The acquisition of Onyx bolstered the firm's therapeutic oncology portfolio with Kyprolis. Recent launches include Repatha (cholesterol-lowering), Aimovig (migraine), Lumakras (lung cancer), and Tezspire (asthma). Amgen's biosimilar portfolio includes Mvasi (biosimilar Avastin), Kanjinti (biosimilar Herceptin), and Amjevita (biosimilar Humira).

Executives

Matthew C. Busch	officer: VP, Finance & CAO	ONE AMGEN CENTER DRIVE, THOUSAND OAKS CA 91320
Michael V Drake	director	ONE AMGEN CENTER DRIVE, THOUSAND OAKS CA 91320
Derek Miller	officer: SVP, Human Resources	ONE AMGEN CENTER DRIVE, THOUSAND OAKS CA 91320
Rachna Khosla	officer: SVP, Business Development	ONE AMGEN CENTER DRIVE, THOUSAND OAKS CA 91320
Omar Ishrak	director	710 MEDTRONIC PKWY, MS LC300, MINNEAPOLIS MN 55432
Amy E Miles	director
Linda H. Louie	officer: VP, Finance & CAO	ONE AMGEN CENTER DRIVE, THOUSAND OAKS CA 91320
Nancy A. Grygiel	officer: SVP & CCO	ONE AMGEN CENTER DRIVE, THOUSAND OAKS CA 91320
Peter H. Griffith	officer: EVP & CFO	ONE AMGEN CENTER DRIVE, THOUSAND OAKS CA 91320
Murdo Gordon	officer: EVP Global Commercial Ops	C/O BRISTOL-MYERS SQUIBB COMPANY, 345 PARK AVE, NEW YORK NY 10154
David M Reese	officer: EVP, Research and Development	ONE AMGEN CENTER DRIVE, THOUSAND OAKS CA 91320
Brian Druker	director	ONE AMGEN CENTER DRIVE, THOUSAND OAKS CA 91320-1799
Wanda M Austin	director	6001 BOLLINGER CANYON ROAD, SAN RAMON CA 94583
Charles M Holley	director
Lori A Johnston	officer: SVP, HR	C/O AMGEN INC., ONE AMGEN CENTER DRIVE, THOUSAND OAKS CA 91320