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Amgen (NAS:AMGN) Cyclically Adjusted FCF per Share

: $16.62 (As of Dec. 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 FCF per Share and the Cyclically Adjusted Price-to-FCF. The Cyclically Adjusted FCF per Share is the average of the inflation adjusted Free Cash Flow per Share of a company over the past 10 years.

Amgen's adjusted free cash flow per share for the three months ended in Dec. 2023 was $0.537. Add all the adjusted free cash flow per share for the past 10 years together and divide the count will get our Cyclically Adjusted FCF per Share, which is $16.62 for the trailing ten years ended in Dec. 2023.

During the past 12 months, Amgen's average Cyclically Adjusted FCF Growth Rate was 6.00% per year. During the past 3 years, the average Cyclically Adjusted FCF Growth Rate was 10.70% per year. During the past 5 years, the average Cyclically Adjusted FCF Growth Rate was 11.10% per year. During the past 10 years, the average Cyclically Adjusted FCF Growth Rate was 12.70% 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 FCF Growth Rate using Cyclically Adjusted FCF per Share data.

During the past 13 years, the highest 3-Year average Cyclically Adjusted FCF Growth Rate of Amgen was 48.70% per year. The lowest was 10.70% per year. And the median was 17.65% per year.

As of today (2024-03-04), Amgen's current stock price is $281.42. Amgen's Cyclically Adjusted FCF per Share for the quarter that ended in Dec. 2023 was $16.62. Amgen's Cyclically Adjusted Price-to-FCF of today is 16.93.

During the past 13 years, the highest Cyclically Adjusted Price-to-FCF of Amgen was 29.70. The lowest was 13.20. And the median was 20.23.


Amgen Cyclically Adjusted FCF per Share Historical Data

The historical data trend for Amgen's Cyclically Adjusted FCF 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 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cyclically Adjusted FCF per Share
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 11.06 12.25 13.99 15.68 16.62

Amgen Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Cyclically Adjusted FCF per Share Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 15.68 15.93 16.57 16.90 16.62

Competitive Comparison

For the Drug Manufacturers - General subindustry, Amgen's Cyclically Adjusted Price-to-FCF, along with its competitors' market caps and Cyclically Adjusted Price-to-FCF 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 Price-to-FCF Distribution

For the Drug Manufacturers industry and Healthcare sector, Amgen's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

* The bar in red indicates where Amgen's Cyclically Adjusted Price-to-FCF falls into.



Amgen Cyclically Adjusted FCF per Share Calculation

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 FCF per Share and the Cyclically Adjusted Price-to-FCF. The Cyclically Adjusted FCF per Share is the average of the inflation adjusted Free Cash Flow per Share of a company over the past 10 years.

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

Cyclically Adjusted FCF per Share is the average of the inflation adjusted Free Cash Flow 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 FCF per Share of Wal-Mart (WMT) for Dec. 31, 2010, we need to have the inflation data and the free cash flow per share from 2001 through 2010.

We adjusted the 2001 free cash flow per share data with the total inflation from 2001 through 2010 to the equivalent free cash flow in 2010. If the total inflation from 2001 to 2010 is 40%, and Wal-Mart's free cash flow is $1 a share in 2001, then the 2001's equivalent free cash flow in 2010 is $1.4 a share. If Wal-Mart's free cash flow is $1 again in 2002, and the total inflation from 2002 through 2010 is 35%, then the equivalent 2002 free cash flow in 2010 is $1.35. So on and so forth, you get the equivalent free cash flow per share of past 10 years. Then you add them together and divided the sum by the count to get Cyclically Adjusted FCF 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 Free Cash Flow per Share data for the three months ended in Dec. 2023 was:

Adj_FreeCashFlowPerShare= Free Cash Flow per Share /CPI of Dec. 2023 (Change)*Current CPI (Dec. 2023)
=0.537/129.4194*129.4194
=0.537

Current CPI (Dec. 2023) = 129.4194.

Amgen Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201403 1.263 99.695 1.640
201406 2.674 100.560 3.441
201409 3.140 100.428 4.046
201412 3.239 99.070 4.231
201503 1.771 99.621 2.301
201506 4.038 100.684 5.190
201509 3.670 100.392 4.731
201512 2.448 99.792 3.175
201603 2.314 100.470 2.981
201606 3.161 101.688 4.023
201609 3.445 101.861 4.377
201612 3.872 101.863 4.919
201703 2.992 102.862 3.764
201706 2.901 103.349 3.633
201709 4.497 104.136 5.589
201712 3.938 104.011 4.900
201803 3.617 105.290 4.446
201806 2.902 106.317 3.533
201809 4.780 106.507 5.808
201812 4.632 105.998 5.655
201903 2.762 107.251 3.333
201906 2.082 108.070 2.493
201909 5.327 108.329 6.364
201912 3.896 108.420 4.651
202003 3.354 108.902 3.986
202006 4.534 108.767 5.395
202009 5.489 109.815 6.469
202012 3.390 109.897 3.992
202103 3.336 111.754 3.863
202106 3.031 114.631 3.422
202109 3.818 115.734 4.269
202112 4.470 117.630 4.918
202203 3.583 121.301 3.823
202206 3.136 125.017 3.246
202209 5.238 125.227 5.413
202212 4.292 125.222 4.436
202303 1.338 127.348 1.360
202306 7.147 128.729 7.185
202309 4.669 129.860 4.653
202312 0.537 129.419 0.537

Add all the adjusted free cash flow per share together and divide 10 will get our Cyclically Adjusted FCF per Share.


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

If a company grows much fast than inflation, Cyclically Adjusted FCF per Share may underestimate the company's free cash flow. Cyclically Adjusted Price-to-FCF can seem to be too high even the actual Price-to-Free-Cash-Flow is low.

For the Cyclically Adjusted Price-to-FCF, the free cash flow per share of the past 10 years are inflation-adjusted and averaged. The result is used for P/FCF calculation. Since it looks at the average over the last 10 years, the Cyclically Adjusted Price-to-FCF is also called CAPFCF 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 Price-to-FCF. The Cyclically Adjusted FCF per Share is the average of the inflation adjusted free cash flow per share of a company over the past 10 years.

Amgen's Cyclically Adjusted Price-to-FCF of today is calculated as

Cyclically Adjusted Price-to-FCF=Share Price/Cyclically Adjusted FCF per Share
=281.42/16.62
=16.93

* 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.

During the past 13 years, the highest Cyclically Adjusted Price-to-FCF of Amgen was 29.70. The lowest was 13.20. And the median was 20.23.


Be Aware

Cyclically Adjusted Price-to-FCF works better for cyclical companies. It gives you a better idea on the company's real free cash flow value.


Amgen Cyclically Adjusted FCF per Share Related Terms

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


Amgen (NAS:AMGN) Business Description

Industry
Address
One Amgen Center Drive, Thousand Oaks, CA, USA, 91320-1799
Amgen is a leader in biotechnology-based human therapeutics. 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). The 2023 Horizon acquisition brings several rare disease drugs, including thyroid eye disease drug Tepezza. Amgen also has a growing biosimilar portfolio.
Executives
Nancy A. Grygiel officer: SVP & CCO ONE AMGEN CENTER DRIVE, THOUSAND OAKS CA 91320
Jonathan P Graham officer: SVP, Gen. Counsel & Secy. 2099 PENNSYLVANIA AVENUE, NW, 12TH FLOOR, WASHINGTON DC 20006
Matthew C. Busch officer: VP, Finance & CAO 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
Rachna Khosla officer: SVP, Business Development ONE AMGEN CENTER DRIVE, THOUSAND OAKS CA 91320
R Sanders Williams director DUKE UNIVERSITY SCHOOL OF MEDICINE, TRENT DRIVE, DURHAM NC 27706
Robert Eckert director MATTEL, INC., 333 CONTINENTAL BLVD, M1-1518, EL SEGUNDO CA 90245
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
Omar Ishrak director 710 MEDTRONIC PKWY, MS LC300, MINNEAPOLIS MN 55432
Ronald D Sugar director 10877 WILSHIRE BLVD., SUITE 1650, LOS ANGELES CA 900274
Linda H. Louie officer: VP, Finance & CAO ONE AMGEN CENTER DRIVE, THOUSAND OAKS CA 91320
Amy E Miles director
David Piacquad officer: SVP, Business Development ONE AMGEN CENTER DRIVE, THOUSAND OAKS CA 91320-1799
Peter H. Griffith officer: EVP & CFO ONE AMGEN CENTER DRIVE, THOUSAND OAKS CA 91320