AMGEN Inc (AMGN) is slightly overvalued and Johnson & Johnson (JNJ) is overvalued.
Both trade above our estimate of their intrinsic value. AMGN is the closer of the two: -11%, against -32% for JNJ.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 7.5% (average of 3 methods) values the shares at $369.87; the price of $410.24 is 11% above that value, and 81% of that value comes from beyond year five.
Leak Score 51/100 on 10 of 12 signals
Discounting its cash flows at 7.1% (average of 3 methods) values the shares at $204.15; the price of $269.19 is 32% above that value, and 83% of that value comes from beyond year five.
Leak Score 50/100 on 9 of 12 signals
| Metric | AMGN | JNJ |
|---|---|---|
| Verdict | Slightly overvalued | Overvalued |
| Price | $410.24 | $269.19 |
| Intrinsic value | $369.87 | $204.15 |
| Margin of safety | -11% | -32% |
| Leak Score | 51/100 (10/12) | 50/100 (9/12) |
| Market cap | $221.8B | $648.7B |
| Revenue growth, 5 years | 7.8% | 2.7% |
| Operating margin | 33.3% | 27.0% |
| Net margin | 22.9% | 21.5% |
| Return on equity | 91.5% | 25.7% |
| Debt to equity | 4.90 | 0.58 |
| P/E | 25.5x | 31.2x |
| Forward P/E | 16.8x | 21.2x |
| P/B | 19.0x | 7.6x |
| Dividend yield | 2.5% | 2.0% |