Stocks
GuruFocus DCF Analysis Says AMGN Stock Is Significantly Overvalued
A discounted cash flow (DCF) analysis of Amgen Inc (AMGN) by GuruFocus indicates that the stock is significantly overvalued. The earnings-based intrinsic value of AMGN is $295.98, while the free cash flow (FCF)-based intrinsic value is $216.27.
The DCF model assumes a 10-year growth rate of 7.1% and a discount rate of 11%. The terminal growth rate is assumed to be 4% for the subsequent 10 years.
Amgen's GF Score is 86/100, indicating strong fundamentals. However, all three valuation models - DCF earnings, DCF FCF, and GF Value - concur that AMGN is overvalued.