Amgen stock may be 47% undervalued following a court ruling that blocked Colorado's proposed price cap on Enbrel. A Discounted Cash Flow model estimates an intrinsic value of about $676 per share, compared with a recent price of $360.45, implying a 46.7% discount. The preliminary injunction supports projected cash flows, though recalls of Corlanor and Sensipar highlight manufacturing risks. On a price-to-earnings basis, Amgen trades at 24.9 times, close to a fair ratio benchmark of 25.3 times, suggesting the stock is roughly fairly valued on that metric.
Amgen IncCourt ruling blocked Colorado's price cap on Enbrel, supporting projected cash flows.