Amgen Inc Stock Fair Value Calculation – Amgen Announces Multi-Billion Dollar Bond Offering to Help Fund Upcoming Acquisition.
February 20, 2023
Trending News ☀️
Amgen Inc ($NASDAQ:AMGN). has announced a multi-billion dollar bond offering to help fund its upcoming acquisition of Horizon Therapeutics. The acquisition is expected to cost $28B, and Amgen is offering a variety of senior notes with maturities ranging from 2025 to 2063 in order to meet the costs. The exact offering price of the notes is yet to be determined, with pricing expected to be announced at the conclusion of the offering. This bond offering is seen as an attractive way for Amgen to finance the acquisition without having to liquidate existing assets or utilize existing cash reserves.
The proceeds from the sale of the bonds will help fund the acquisition and provide Amgen with more financial flexibility in the future. This will help ensure that the acquisition is financially viable and Amgen can move forward with its plans.
Market Price
The news received mostly positive media exposure, which translated in the short term to a 0.4% decrease in its stock price. AMGEN Inc opened at $240.2 and closed at $240.1, down from the previous closing price of 241.0. The offering itself will help Amgen as it moves forward with its acquisition, allowing the company to further establish its presence in the market and remain competitive. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Amgen Inc. More…
| Total Revenues | Net Income | Net Margin |
| 26.32k | 6.55k | 24.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Amgen Inc. More…
| Operations | Investing | Financing |
| 9.72k | -6.04k | -4.04k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Amgen Inc. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 65.12k | 61.46k | 6.86 |
Key Ratios Snapshot
Some of the financial key ratios for Amgen Inc are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 4.1% | -0.4% | 33.2% |
| FCF Margin | ROE | ROA |
| 33.4% | 149.6% | 8.4% |
Analysis – Amgen Inc Stock Fair Value Calculation
At GoodWhale, we have conducted a thorough analysis of the financials of AMGEN INC. After our proprietary Valuation Line, we estimated the fair value of AMGEN INC to be around $272.3. However, the stock is currently trading at $240.1, meaning that it is undervalued by 11.8%. This presents an excellent opportunity for savvy investors looking to buy AMGEN INC shares at a discounted rate and grab future gains. We recommend taking the advantage of this undervalued situation and invest in the stock now. More…
Peers
The competition between Amgen Inc and its competitors is fierce. Amgen Inc is the largest biotechnology company in the world, with a market capitalization of over $100 billion. Its competitors, Gilead Sciences Inc, Eli Lilly and Co, and Biogen Inc, are all large, well-established companies with significant resources. each company is striving to develop the best products and to gain market share. The competition is intense, and each company is working hard to win.
– Gilead Sciences Inc ($NASDAQ:GILD)
Gilead Sciences Inc is a biopharmaceutical company that focuses on the discovery, development, and commercialization of drugs. The company was founded in 1987 and is headquartered in Foster City, California. Gilead Sciences Inc has a market cap of 83.2B as of 2022, a Return on Equity of 24.03%. The company’s key products include HIV/AIDS treatment, hepatitis C treatment, and oncology products. Gilead Sciences Inc also has a pipeline of products in development for various indications, including HIV, hepatitis B, non-alcoholic steatohepatitis, and respiratory syncytial virus.
– Eli Lilly and Co ($NYSE:LLY)
Eli Lilly and Co is a pharmaceutical company headquartered in Indianapolis, Indiana. The company was founded in 1876 by Colonel Eli Lilly. The company develops and markets products in the areas of diabetes, oncology, immunology, neuroscience, and other areas. Lilly has operations in more than 60 countries and sells products in more than 125 countries. Lilly has been one of the world’s leading innovators in the pharmaceutical industry, with products such as Prozac, Zyprexa, and Cialis. The company has a market cap of 316.18B as of 2022 and a Return on Equity of 45.88%.
– Biogen Inc ($NASDAQ:BIIB)
Biogen Inc. is a global biotechnology company. The company is engaged in the discovery, development, manufacturing and commercialization of therapies for the treatment of neurodegenerative diseases, hematologic conditions and autoimmune diseases. Biogen has a market cap of $39.12B as of 2022 and a return on equity of 14.98%. The company’s products include aducanumab, a monoclonal antibody for the treatment of Alzheimer’s disease; SPINRAZA, a therapeutic agent for the treatment of spinal muscular atrophy; and TYSABRI, a monoclonal antibody for the treatment of multiple sclerosis.
Summary
AMGEN INC is a biopharmaceutical company that develops products to treat illnesses and improve patient health outcomes. Recently, the company announced a multi-billion dollar bond offering in order to fund its upcoming acquisition. This offering has been met with generally positive media exposure, illustrating how investors view the stock positively.
Analysts generally rate the stock as a buy for its diversity of product offerings and its financial strength. With such fundamentals, AMGEN INC is an attractive stock for investors wanting to invest in the healthcare sector.
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