Amgen Hits 52-Week High, But Is There Room for Further Gains?

Amgen has reached its 52-week high of $447.03 after a year-over-year surge of 55.4%. However, a closer look at the valuation math suggests that there may be limited upside from here.

The company's revenue has grown by 41.4% over four fiscal years, from $25.98 billion in 2021 to $36.75 billion in 2025, and its EBITDA has climbed in lockstep. Free cash flow remains robust, averaging around $8.6 billion annually over five years.

The stock is not cheap for a large-cap biotech, with a trailing P/E of 27.4x and an EV/EBITDA of 16.0x. However, the forward P/E drops to a more digestible 19.1x if earnings growth materializes as expected.

The leverage figure deserves attention, with Amgen taking on significant debt after acquiring Horizon Therapeutics. Regulators have revoked Tavneos in the EU and suspended it in the UK, citing unreliable trial data.