DCF Tool

AMGN

Amgen Inc. is an American multinational biopharmaceutical company headquartered in Thousand Oaks, California. One of the worlds largest independent biotechnology companies, Amgen was established in Thousand Oaks, California, in 1980.
Analysis Results
Intrinsic Value $679.74
Latest Price $267.28
Relative Value 61% undervalued
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Cash Flow (Billions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 6.7%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 6.2%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 6.7%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2024 13.5 12.7
2025 14.4 12.8
2026 15.4 12.8
2027 16.4 12.9
2028 17.5 13.0
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 429 billion. This corresponds to a present value of 300 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 64.2 billion. Adding in the terminal value gives a total present value of 364 billion.

There are presently 536.0 million outstanding shares, so the intrinsic value per share is 679.74.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 30,332,000,000
Current Cash 10,944,000,000
Current Liabilities 18,392,000,000
Current Debt 1,443,000,000
Non-Cash Working Capital (NCWC) 2,439,000,000
Change in NCWC 3,654,000,000
EBIT 7,897,000,000
Tax Provision 1,138,000,000
Depreciation and Amortization 4,071,000,000
Capital Expenditure -1,112,000,000
Unlevered Free Cash Flow 13,365,915,213
Current Assets 22,186,000,000
Current Cash 9,305,000,000
Current Liabilities 15,687,000,000
Current Debt 1,591,000,000
Non-Cash Working Capital (NCWC) -1,215,000,000
Change in NCWC -466,000,000
EBIT 9,566,000,000
Tax Provision 794,000,000
Depreciation and Amortization 3,417,000,000
Capital Expenditure -936,000,000
Unlevered Free Cash Flow 10,547,049,006
Current Assets 19,385,000,000
Current Cash 8,037,000,000
Current Liabilities 12,184,000,000
Current Debt 87,000,000
Non-Cash Working Capital (NCWC) -749,000,000
Change in NCWC 316,000,000
EBIT 9,144,000,000
Tax Provision 808,000,000
Depreciation and Amortization 3,398,000,000
Capital Expenditure -880,000,000
Unlevered Free Cash Flow 10,875,425,458
Current Assets 21,144,000,000
Current Cash 10,647,000,000
Current Liabilities 11,653,000,000
Current Debt 91,000,000
Non-Cash Working Capital (NCWC) -1,065,000,000
Change in NCWC -712,000,000
EBIT 9,139,000,000
Tax Provision 869,000,000
Depreciation and Amortization 3,601,000,000
Capital Expenditure -608,000,000
Unlevered Free Cash Flow 10,443,510,266
Current Assets 18,440,000,000
Current Cash 8,911,000,000
Current Liabilities 12,835,000,000
Current Debt 2,953,000,000
Non-Cash Working Capital (NCWC) -353,000,000
Change in NCWC 402,000,000
EBIT 9,674,000,000
Tax Provision 1,296,000,000
Depreciation and Amortization 2,206,000,000
Capital Expenditure -618,000,000
Unlevered Free Cash Flow 10,291,981,615
Current Assets 37,618,000,000
Current Cash 29,304,000,000
Current Liabilities 13,488,000,000
Current Debt 4,419,000,000
Non-Cash Working Capital (NCWC) -755,000,000
Change in NCWC -685,000,000
EBIT 10,263,000,000
Tax Provision 1,151,000,000
Depreciation and Amortization 1,946,000,000
Capital Expenditure -738,000,000
Unlevered Free Cash Flow 9,548,418,753
Current Assets 49,476,000,000
Current Cash 41,678,000,000
Current Liabilities 9,020,000,000
Current Debt 1,152,000,000
Non-Cash Working Capital (NCWC) -70,000,000
Change in NCWC -1,194,000,000
EBIT 9,973,000,000
Tax Provision 7,618,000,000
Depreciation and Amortization 1,955,000,000
Capital Expenditure -664,000,000
Unlevered Free Cash Flow 2,153,535,063
Current Assets 46,010,000,000
Current Cash 38,085,000,000
Current Liabilities 11,204,000,000
Current Debt 4,403,000,000
Non-Cash Working Capital (NCWC) 1,124,000,000
Change in NCWC 405,000,000
EBIT 9,794,000,000
Tax Provision 1,441,000,000
Depreciation and Amortization 2,105,000,000
Capital Expenditure -837,000,000
Unlevered Free Cash Flow 9,926,767,106
Current Assets 38,518,000,000
Current Cash 31,382,000,000
Current Liabilities 8,667,000,000
Current Debt 2,250,000,000
Non-Cash Working Capital (NCWC) 719,000,000
Change in NCWC -460,000,000
EBIT 8,470,000,000
Tax Provision 1,039,000,000
Depreciation and Amortization 2,108,000,000
Capital Expenditure -649,000,000
Unlevered Free Cash Flow 8,365,925,294
Current Assets 34,713,000,000
Current Cash 27,026,000,000
Current Liabilities 7,008,000,000
Current Debt 500,000,000
Non-Cash Working Capital (NCWC) 1,179,000,000
Change in NCWC -1,345,000,000
EBIT 6,191,000,000
Tax Provision 427,000,000
Depreciation and Amortization 2,092,000,000
Capital Expenditure -1,003,000,000
Unlevered Free Cash Flow 5,461,668,397
Current Assets 27,367,000,000
Current Cash 19,401,000,000
Current Liabilities 7,947,000,000
Current Debt 2,505,000,000
Non-Cash Working Capital (NCWC) 2,524,000,000
Change in NCWC 1,072,000,000
EBIT 5,867,000,000
Tax Provision 184,000,000
Depreciation and Amortization 1,286,000,000
Capital Expenditure -693,000,000
Unlevered Free Cash Flow 7,326,961,443
Current Assets 31,209,000,000
Current Cash 24,061,000,000
Current Liabilities 8,191,000,000
Current Debt 2,495,000,000
Non-Cash Working Capital (NCWC) 1,452,000,000
Change in NCWC 170,000,000
EBIT 5,577,000,000
Tax Provision 664,000,000
Depreciation and Amortization 1,088,000,000
Capital Expenditure -689,000,000
Unlevered Free Cash Flow 5,406,705,130

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