Amgen Inc.

Analyst Listing

The following analysts provide coverage for the subject firm as of May 2016:

Broker	Analyst	Analyst Email
Credit Suisse	Alethia Young	alethia.young@credit-suisse.com
Raymond James	Christopher J. Raymond	chris.raymond@raymondjames.com
Cowen & Company	Eric Schmidt	eric.schmidt@cowen.com
Jefferies	Eun K. Yang	eyang@jefferies.com
Leerink Partners	Geoffrey C. Porges	geoffrey.porges@leerink.com
BTIG	Hartaj Singh	hsingh@btig.com
Wells Fargo Securities	Jim Birchenough	jim.birchenough@wellsfargo.com
William Blair	John Sonnier	jsonnier@williamblair.com
Piper Jaffray	Joshua Schimmer	joshua.e.schimmer@pjc.com
BMO Capital Markets	M. Ian Somaiya	ian.somaiya@bmo.com
Evercore ISI	Mark Schoenebaum	mark.schoenebaum@evercoreisi.com
RBC Capital Markets	Michael J. Yee	michael.yee@rbccm.com
Atlantic Equities	Steve Chesney	s.chesney@atlantic-equities.com

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Primary Input Data

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Derived Input Data

Derived Input	Label	2015 Value	2016 Value	Equational Form
Net Operating Profit Less Adjusted Taxes	NOPLAT	5,395	6,191	$NOPLAT\, =\, EBIT\, x\, (1 \,-\, Avg \,\,Tax\,\, Rate\,\, on\,\, EBIT)$
Free Cash Flow	FCF	8,483	9,616	$FCF\,=NOPLAT\,+\,Non-Cash\,Expenses-\Delta NWC\,-\,NCS$
Tax Shield	TS	142	200	$TS\,=\,Interest\,\,Paid\,\,x\,\, Avg \,\,Tax\,\,Rate\,\, on\,\, Pre-Tax\,\, Income$
Invested Capital	IC	62,909	66,422	$IC\,=\,Fixed\,\,Operating\,\,Assets\,\,+\,\,Net\,\, Working\,\, Capital$
Return on Invested Capital	ROIC	8.58%	9.32%	$ROIC\,=\,\frac { NOPLAT }{ IC }$
Net Investment	NetInv	3,016	5,618	$NetInv\,=\,{ {IC}_{1}}-{{IC}_{0}}+Depreciation$
Investment Rate	IR	55.90%	90.75%	$IR\,=\,\frac {NetInv}{NOPLAT}$
Weighted Average Cost of Capital	WACC_Market	39.08%	29.64%	$WACC\,=\,\frac { E }{ V } { R }_{ E }\,+\,\frac { P }{ V } { R }_{ P }\,+\,\frac { D }{ V } { R }_{ D }\left( 1- Avg\,\, Tax\,\,Rate\,\,on\,\,Pre-Tax\,\,Income \right)$
Weighted Average Cost of Capital	WACC_Book	9.71%	8.73%
Enterprise value	EV_Market	124,207	105,860	$EV\,=\,Market\,\,Cap\,\,Equity\,+\,\,Long\,\,Term\,\,Debt\,-\,Cash$
Enterprise value	EV_Book	120,321	100,040
Long-Run Growth	g = IR x ROIC	4.79%	8.46%	Long-run growth rates of the income variable are used in the Continuing Value portion of the valuation models.
Long-Run Growth	g = % $\Delta$ GDP	2.50%	2.50%
Margin from Operations	M	38.90%	41.99%	$M\,\,=\,\,\frac{EBIT}{SALES}$
Depreciation/Amortization Rate	D	20.25%	18.10%	$D\,\,=\,\,\frac{D+A}{EBITDA}$

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Valuation Multiple Outcomes

The outcomes presented in this study are the result of original input data, derived data, and synthesized inputs.

Equational Form	Observed Value		Single-stage multiple g solution		Two-stage valuation model g solution
Equational Form	12/31/2015	12/31/2016	12/31/2015	12/31/2016	12/31/2015	12/31/2016
EV/SALES $\frac {EV}{Sales} \,= \,\frac{ROIC\, -\, g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)\,(M)$	5.82	4.67	70.39%	63.85%	43.14%	35.44%
EV/EBITDA $\frac {EV}{EBITDA} \,= \,\frac{ROIC\, -\, g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)\,(1\,-\,D)$	11.93	9.10	70.39%	63.85%	43.14%	35.44%
EV/NOPLAT $\frac {EV}{NOPLAT} \,= \,\frac{ROIC\, -\, g}{ROIC\,(WACC\,-\,g)}$	23.02	17.10	70.39%	63.85%	43.14%	35.44%
EV/FCF_OPS $\frac {EV}{FCF_{OPS}} \,= \,\frac{ROIC\, -\, g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)$	14.64	11.01	70.39%	63.85%	43.14%	35.44%
EV/EBIT $\frac {EV}{EBIT} \,= \,\frac{ROIC\, -\, g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)$	14.96	11.12	70.39%	63.85%	43.14%	35.44%
EV/IC $\frac {EV}{IC} \,= \,\frac{ROIC\, -\, g}{WACC\,-\,g}$	1.97	1.59	70.39%	63.85%	43.14%	35.44%

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