AMGEN Inc (AMGN) is slightly overvalued and Merck & Co Inc (MRK) is overvalued.
Both trade above our estimate of their intrinsic value. AMGN is the closer of the two: -11%, against -205% for MRK.
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 $49.49; the price of $150.91 is 205% above that value, and 82% of that value comes from beyond year five.
Leak Score 40/100 on 9 of 12 signals
| Metric | AMGN | MRK |
|---|---|---|
| Verdict | Slightly overvalued | Overvalued |
| Price | $410.24 | $150.91 |
| Intrinsic value | $369.87 | $49.49 |
| Margin of safety | -11% | -205% |
| Leak Score | 51/100 (10/12) | 40/100 (9/12) |
| Market cap | $221.8B | $372.3B |
| Revenue growth, 5 years | 7.8% | 9.3% |
| Operating margin | 33.3% | 18.8% |
| Net margin | 22.9% | 4.8% |
| Return on equity | 91.5% | 7.0% |
| Debt to equity | 4.90 | 1.29 |
| P/E | 25.5x | 120.6x |
| Forward P/E | 16.8x | 15.8x |
| P/B | 19.0x | 8.9x |
| Dividend yield | 2.5% | 2.3% |