Amgen's Stock Price Sky-High: DCF Analysis Suggests Overvaluation

Amgen Inc (AMGN) has seen impressive price gains recently, with its stock rising 36.3% year-to-date and 58.4% in the past year.

However, a discounted cash flow (DCF) analysis conducted by GuruFocus suggests that the stock is significantly overvalued.

The DCF earnings-based model used a two-stage approach to assess Amgen's intrinsic value, with a growth phase lasting ten years and an annual EPS growth rate of 7.1%.

According to the analysis, the intrinsic value derived from this model is $295.98, indicating that the stock is overvalued by 47.7% compared to its current price of $437.23.