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Amgen PS Ratio

: 4.75 (As of Today)
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The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. As of today, Amgen's share price is $207.83. Amgen's Revenue per Share for the trailing twelve months (TTM) ended in Jun. 2021 was $43.75. Hence, Amgen's PS Ratio for today is 4.75.

Good Sign:

Amgen Inc stock PS Ratio (=4.78) is close to 5-year low of 4.52

The historical rank and industry rank for Amgen's PS Ratio or its related term are showing as below:

NAS:AMGN' s PS Ratio Range Over the Past 10 Years
Min: 3.09   Med: 5.27   Max: 6.55
Current: 4.78

3.09
6.55

During the past 13 years, Amgen's highest PS Ratio was 6.55. The lowest was 3.09. And the median was 5.27.

NAS:AMGN's PS Ratio is ranked lower than
68% of the 143 Companies
in the Drug Manufacturers industry.

( Industry Median: 3.90 vs. NAS:AMGN: 4.78 )

Amgen's Revenue per Sharefor the three months ended in Jun. 2021 was $11.33. Its Revenue per Share for the trailing twelve months (TTM) ended in Jun. 2021 was $43.75.

Good Sign:

Amgen Inc has shown predictable revenue and earnings growth.

During the past 12 months, the average Revenue per Share Growth Rate of Amgen was 7.30% per year. During the past 3 years, the average Revenue per Share Growth Rate was 11.50% per year. During the past 5 years, the average Revenue per Share Growth Rate was 8.70% per year. During the past 10 years, the average Revenue per Share Growth Rate was 9.90% per year.

During the past 13 years, Amgen's highest 3-Year average Revenue per Share Growth Rate was 121.70% per year. The lowest was -20.60% per year. And the median was 15.65% per year.

Back to Basics: PS Ratio


Amgen PS Ratio Historical Data

The historical data trend for Amgen's PS Ratio 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 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
PS Ratio
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.80 5.59 5.45 6.28 5.34

Amgen Quarterly Data
Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21
PS Ratio 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 5.79 6.03 5.34 5.80 5.57

Competitive Comparison

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

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

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



Amgen PS Ratio Calculation

The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. It is a ratio widely used to value stocks and it was first used by Ken Fisher.

Amgen's PS Ratio for today is calculated as

PS Ratio=Share Price/Revenue per Share (TTM)
=207.83/43.752
=4.75

Amgen's Share Price of today is $207.83.
Amgen's Revenue per Share for the trailing twelve months (TTM) ended in Jun. 2021 adds up the quarterly data reported by the company within the most recent 12 months, which was $43.75.

* 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.

It can also be calculated from the numbers for the whole company:

PS Ratio=Market Cap/Revenue

The Revenue here is for the trailing 12 months.


Amgen  (NAS:AMGN) PS Ratio Explanation

The PS Ratio is an excellent valuation indicator if you want to compare a stock with its historical valuation or with the stocks in the same industry. The PS Ratio works especially well when you want to compare the stock's current valuation with its historical valuation. The PS Ratio is a great valuation tool for evaluating cyclical businesses where the PE Ratio works poorly. It works the best when comparing the current valuation with the historical valuation because over time, a company's profit margin tends to revert to the mean.

When the PS Ratio is applied to the whole stock market, it can be used to evaluate the current market valuation and projected returns. In this case, the price is the total market cap of all stocks that are traded, and sales are the GDP of the country. This is how Warren Buffett estimates the broad market valuation and project future returns.

Similar to the PE Ratio or Price-to-Operating-Cash-Flow or Price-to-Free-Cash-Flow , the PS Ratio measures the valuation based on the earning power of the company. This is where it is different from the PB Ratio , which measures the valuation based on the company's balance sheet.


Be Aware

The PS Ratio does not tell you how cheap or expensive the stock is. It cannot be used to compare companies in different industries. It works better for companies within the same industry because these companies tend to have similar capital structures and profit margins. It works the best when comparing a company with itself in the past.


Amgen PS Ratio Related Terms

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


Amgen Business Description

Amgen logo
Industry
Healthcare » Drug Manufacturers NAICS : 325412 SIC : 2834
Address
One Amgen Center Drive, Thousand Oaks, CA, USA, 91320-1799
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 Nexavar and Kyprolis. Recent launches include Repatha (cholesterol-lowering), Aimovig (migraine), and Lumakras (lung cancer). Amgen's biosimilar portfolio includes Mvasi (biosimilar Avastin), Kanjinti (biosimilar Herceptin), and Amgevita (biosimilar Humira).
Executives
Sugar Ronald D director 10877 WILSHIRE BLVD. SUITE 1650 LOS ANGELES CA 900274
Williams R Sanders director DUKE UNIVERSITY SCHOOL OF MEDICINE TRENT DRIVE DURHAM NC 27706
Santos Esteban officer: EVP, Operations ONE AMGEN CENTER DRIVE THOUSAND OAKS CA 91320
Miles Amy E director PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: MILES AMY E a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Kullman Ellen Jamison director UNITED TECHNOLOGIES CORP 10 FARM SPRINGS ROAD FARMINGTON CT 06032
Grygiel Nancy A. officer: SVP & CCO ONE AMGEN CENTER DRIVE THOUSAND OAKS CA 91320
Louie Linda H. officer: VP, Finance & CAO ONE AMGEN CENTER DRIVE THOUSAND OAKS CA 91320
Holley Charles M director PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: HOLLEY CHARLES M a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Griffith Peter H. officer: EVP & CFO ONE AMGEN CENTER DRIVE THOUSAND OAKS CA 91320
Reese David M officer: EVP, Research and Development ONE AMGEN CENTER DRIVE THOUSAND OAKS CA 91320
Druker Brian director ONE AMGEN CENTER DRIVE THOUSAND OAKS CA 91320-1799
Austin Wanda M director 6001 BOLLINGER CANYON ROAD SAN RAMON CA 94583
Gordon Murdo officer: EVP Global Commercial Ops C/O BRISTOL-MYERS SQUIBB COMPANY 345 PARK AVE NEW YORK NY 10154
Piacquad David officer: SVP, Business Development ONE AMGEN CENTER DRIVE THOUSAND OAKS CA 91320-1799
Patton Cynthia M officer: SVP & CCO ONE AMGEN CENTER DRIVE THOUSAND OAKS CA 91320-1799

Amgen Headlines

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