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Amgen (AMGN) E10

: $11.89 (As of Dec. 2023)
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E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller P/E calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years.

Amgen's adjusted earnings per share data for the three months ended in Dec. 2023 was $1.420. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $11.89 for the trailing ten years ended in Dec. 2023.

During the past 12 months, Amgen's average E10 Growth Rate was 6.80% per year. During the past 3 years, the average E10 Growth Rate was 10.60% per year. During the past 5 years, the average E10 Growth Rate was 11.10% per year. During the past 10 years, the average E10 Growth Rate was 11.10% 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 E10 growth rate using E10 data.

During the past 13 years, the highest 3-Year average E10 Growth Rate of Amgen was 34.20% per year. The lowest was 6.20% per year. And the median was 16.65% per year.

As of today (2024-04-21), Amgen's current stock price is $268.94. Amgen's E10 for the quarter that ended in Dec. 2023 was $11.89. Amgen's Shiller PE Ratio of today is 22.62.

During the past 13 years, the highest Shiller PE Ratio of Amgen was 36.60. The lowest was 18.58. And the median was 26.91.


Amgen E10 Historical Data

The historical data trend for Amgen's E10 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
E10
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 8.03 8.80 9.98 11.13 11.89

Amgen Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
E10 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 11.13 11.60 11.77 11.96 11.89

Competitive Comparison

For the Drug Manufacturers - General subindustry, Amgen's Shiller PE Ratio, along with its competitors' market caps and Shiller PE 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 Shiller PE Ratio Distribution

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

* The bar in red indicates where Amgen's Shiller PE Ratio falls into.



Amgen E10 Calculation

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller P/E calculation. When we calculate the today's Shiller P/E ratio of a stock, we use today's price divided by E10.

What is E10? How do we calculate E10?

E10 is the average of the inflation adjusted earnings of a company over the past 10 years. Let's use an example to explain.

If we want to calculate the E10 of Wal-Mart (WMT) for Dec. 31, 2010, we need to have the inflation data and the earnings from 2001 through 2010.

We adjusted the earnings of 2001 earnings data with the total inflation from 2001 through 2010 to the equivalent earnings in 2010. If the total inflation from 2001 to 2010 is 40%, and Wal-Mart earned $1 a share in 2001, then the 2001's equivalent earnings in 2010 is $1.4 a share. If Wal-Mart earns $1 again in 2002, and the total inflation from 2002 through 2010 is 35%, then the equivalent 2002 earnings in 2010 is $1.35. So on and so forth, you get the equivalent earnings of past 10 years. Then you add them together and divided the sum by 10 to get E10.

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 earnings per share data for the three months ended in Dec. 2023 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Dec. 2023 (Change)*Current CPI (Dec. 2023)
=1.42/129.4194*129.4194
=1.420

Current CPI (Dec. 2023) = 129.4194.

Amgen Quarterly Data

per share eps CPI Adj_EPS
201403 1.400 99.695 1.817
201406 2.010 100.560 2.587
201409 1.610 100.428 2.075
201412 1.680 99.070 2.195
201503 2.110 99.621 2.741
201506 2.150 100.684 2.764
201509 2.440 100.392 3.146
201512 2.370 99.792 3.074
201603 2.500 100.470 3.220
201606 2.470 101.688 3.144
201609 2.680 101.861 3.405
201612 2.590 101.863 3.291
201703 2.790 102.862 3.510
201706 2.910 103.349 3.644
201709 2.760 104.136 3.430
201712 -5.890 104.011 -7.329
201803 3.250 105.290 3.995
201806 3.480 106.317 4.236
201809 2.860 106.507 3.475
201812 3.010 105.998 3.675
201903 3.180 107.251 3.837
201906 3.570 108.070 4.275
201909 3.270 108.329 3.907
201912 2.850 108.420 3.402
202003 3.070 108.902 3.648
202006 3.050 108.767 3.629
202009 3.430 109.815 4.042
202012 2.760 109.897 3.250
202103 2.830 111.754 3.277
202106 0.810 114.631 0.914
202109 3.310 115.734 3.701
202112 3.360 117.630 3.697
202203 2.680 121.301 2.859
202206 2.450 125.017 2.536
202209 3.980 125.227 4.113
202212 3.000 125.222 3.101
202303 5.280 127.348 5.366
202306 2.570 128.729 2.584
202309 3.220 129.860 3.209
202312 1.420 129.419 1.420

Add all the adjusted EPS together and divide 10 will get our e10.


Amgen  (NAS:AMGN) E10 Explanation

If a company grows much fast than inflation, E10 may underestimate the company's earnings power. Shiller PE Ratio can seem to be too high even the actual P/E is low.

For the Shiller P/E, the earnings of the past 10 years are inflation-adjusted and averaged. The result is used for P/E calculation. Since it looks at the average over the last 10 years, the Shiller P/E is also called PE10.

The Shiller P/E was first used by professor Robert Shiller to measure the valuation of the overall market. The same calculation is applied here to individual companies.

Amgen's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=268.94/11.89
=22.62

* 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 Shiller P/E Ratio of Amgen was 36.60. The lowest was 18.58. And the median was 26.91.


Be Aware

Shiller PE Ratio works better for cyclical companies. It gives you a better idea on the company's real earnings power.


Amgen E10 Related Terms

Thank you for viewing the detailed overview of Amgen's E10 provided by GuruFocus.com. Please click on the following links to see related term pages.


Amgen (AMGN) Business Description

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

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