Amgen Inc. (AMGN) DCF Valuation
Amgen DCF: $9.5B TTM FCF, $50B net debt, 5% growth on rare disease.
Healthcare · Founded 1980 · Beta 0.55
Amgen Inc.
Current price: $312.40 · Market cap ≈ $168.7B
Amgen's $9.5B TTM FCF is recovering from biosimilar competition. The $50B net debt is high (Horizon Therapeutics acquisition). Long-term thesis depends on the rare-disease pipeline + obesity drug pipeline.
DCF Valuation Inputs
High-growth phase
Decay/growth normalization
Perpetual (≤ WACC)
Must be > terminal growth
in millions
Enterprise Value
$178M
Equity Value
$128M
Per Share
$0
Upside / (Downside)
-100.0%
PV of explicit FCF
$43M
Terminal value
$198M
PV of terminal
$135M
Terminal % of EV
75.9%
| Year | Growth | FCF ($M) | Discount Factor | PV ($M) |
|---|---|---|---|---|
| 0 | base | $10 | 1.000 | — |
| 1 | 5.0% | $10 | 0.926 | $9 |
| 2 | 4.0% | $10 | 0.857 | $9 |
| 3 | 4.0% | $11 | 0.794 | $9 |
| 4 | 4.0% | $11 | 0.735 | $8 |
| 5 | 4.0% | $12 | 0.681 | $8 |
| Terminal | perpetual | — | — | $135 |
Discount factor = 1 / (1 + WACC)ⁿ. Terminal value computed using the Gordon Growth Model: TV = FCF_N × (1 + g) / (WACC − g), then discounted back to present.
| g ＼ WACC | 6.0% | 7.0% | 8.0% | 9.0% | 10.0% |
|---|---|---|---|---|---|
| 1.0% | $0 | $0 | $0 | $0 | $0 |
| 1.5% | $0 | $0 | $0 | $0 | $0 |
| 2.0% | $0 | $0 | $0 | $0 | $0 |
| 2.5% | $0 | $0 | $0 | $0 | $0 |
| 3.0% | $0 | $0 | $0 | $0 | $0 |
Highlighted cell is your current WACC × terminal-growth assumption. Cells beyond WACC ≤ g are undefined (Gordon Growth fails).
AMGN DCF: At Default Assumptions
| Item | Value | Notes |
|---|---|---|
| Current price | $312.40 | Market |
| Intrinsic value (per share) | $0.24 | DCF model output |
| Upside / (Downside) | -99.9% | vs current price |
| Enterprise value | $$178M | PV of explicit FCF + terminal |
| Equity value | $$128M | EV − net debt |
| Key fact | Horizon Therapeutics: $3.7B acquisition | |
Numbers reflect TTM fundamentals + default DCF assumptions (8.0% WACC, 2.0% terminal growth, 5% Year-1 growth, 4% Years 2+). Use the calculator above to run your own scenario.
AMGN Sources & References
- SEC EDGAR: latest 10-K filing, 10-Q filings, and proxy statement for Amgen Inc. (AMGN).
- Yahoo Finance: real-time price snapshot, analyst consensus growth estimates, and 52-week range.
- S&P Capital IQ: WACC build (cost of equity via CAPM + after-tax cost of debt).
- Federal Reserve Economic Data (FRED): risk-free rate for CAPM, sector beta benchmarks.
- Damodaran Online (NYU): Healthcare sector WACC and beta benchmarks for cross-validation.
DCF models for other large-caps
Editorial standards
Every CalcCentral calculator is authored by a credentialed subject-matter expert and independently reviewed before publication. Our editorial policy follows the same E-E-A-T guidelines used by Google to evaluate YMYL (your-money-or-your-life) pages.
Author
Maya Chen, CFA
Chartered Financial Analyst
Independently reviewed
Dr. Aaron Pak, PhD
Doctor of Kinesiology & Public Health
Last reviewed: August 12, 2026 · Next scheduled review: quarterly
Verified accuracy
Cross-checked against authoritative formulas (IRS, NIST, ACM) and updated for 2025/2026 tax years and rates.
Instant results
No server roundtrip. All math runs in your browser so results appear the moment you finish typing.
Your data stays private
We never collect, store, or transmit your inputs. Every calculation runs locally in your browser.
Learn as you calculate
Each calculator includes the formula, plain-English explanation, and FAQs so you understand the result.
Estimates only. Calculator results are for educational and planning purposes — not professional advice. For binding decisions on taxes, investments, health, or legal matters, consult a qualified professional.
Related Articles
DCF Valuation Calculator
Generic DCF model — adjust any assumption and run sensitivity analysis.
Investment Calculator
Compound returns, recurring contributions, and time-weighted growth on any lump-sum.
Dividend Reinvestment Calculator
Project year-by-year portfolio growth from monthly contributions and reinvested dividends.