Wondering if Amneal Pharmaceuticals is a hidden value or a stock that’s already run its course? You’re not alone, and plenty of investors are taking a close look at the numbers right now.
After an incredible 61.3% gain year-to-date and a remarkable 415.2% return over three years, the share price has caught serious momentum. This suggests growing optimism or changing risk perceptions around the company.
Much of the recent buzz traces back to industry developments and regulatory updates that have placed Amneal in the spotlight, sparking both excitement and debate among market watchers. Wider trends in generic pharmaceuticals and recent product approvals have fueled speculation about the company’s next moves.
Based on our valuation framework, Amneal scores 5 out of 6 on our valuation checks, which puts it ahead of most of its peers. Here is a closer look at what those metrics really mean, along with a fresh perspective on finding real value that goes beyond the basics.
Amneal Pharmaceuticals delivered 51.4% returns over the last year. See how this stacks up to the rest of the Pharmaceuticals industry.
The Discounted Cash Flow (DCF) model estimates a company’s intrinsic value by projecting future cash flows and then discounting them back to their present value. This approach helps investors understand what the company is truly worth today based on expected future performance.
For Amneal Pharmaceuticals, the DCF analysis uses a two-stage Free Cash Flow to Equity method. The latest reported Free Cash Flow is $245.66 Million, with analysts expecting robust growth ahead. By 2027, projections place annual Free Cash Flow at $500 Million. Extrapolations suggest that figure could reach over $1.1 Billion by 2035, reflecting continued future expansion. Analyst estimates provide inputs for the first five years, while longer-term numbers are modeled by Simply Wall St using industry growth trends.
Based on this model, the estimated intrinsic value of Amneal Pharmaceuticals is $69.18 per share. In comparison to its current share price, this result indicates the stock trades at a significant 81.9% discount relative to its calculated fair value, which suggests potential undervaluation.
Result: UNDERVALUED
Our Discounted Cash Flow (DCF) analysis suggests Amneal Pharmaceuticals is undervalued by 81.9%. Track this in your watchlist or portfolio, or discover 914 more undervalued stocks based on cash flows.
AMRX Discounted Cash Flow as at Nov 2025
Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Amneal Pharmaceuticals.
The price-to-sales (P/S) ratio is often the preferred valuation metric for companies like Amneal Pharmaceuticals, especially when profits are relatively low or volatile but revenue trends remain steady. For profitable companies, the P/S ratio offers a clear sense of what investors are willing to pay for each dollar of sales. This makes it a practical tool for comparing valuations, particularly in fast-evolving sectors such as pharmaceuticals.
It is important to remember that growth expectations and company-specific risks play a large role in determining what constitutes a “normal” or fair P/S ratio. Companies with higher growth rates or lower risks typically warrant a higher ratio, while those facing headwinds tend to trade at a lower ratio.
Currently, Amneal trades at a P/S ratio of 1.34x. This compares to the pharmaceutical industry average of 4.18x and the peer average of 17.11x, suggesting the market is placing a lower value on each dollar of Amneal’s sales relative to its competitors.
However, Simply Wall St’s proprietary Fair Ratio goes further by factoring in unique aspects of Amneal’s business, such as its projected earnings growth, profit margin profile, market capitalization, and any business-specific risks. Unlike a simple peer or industry comparison, the Fair Ratio is a comprehensive benchmark designed to reflect what the multiple truly should be. Amneal’s Fair Ratio is 2.90x.
Comparing Amneal’s current multiple to the Fair Ratio indicates the stock is meaningfully undervalued by this measure, with a significant gap between its P/S of 1.34x and its Fair Ratio of 2.90x.
Result: UNDERVALUED
NasdaqGS:AMRX PS Ratio as at Nov 2025
PS ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1437 companies where insiders are betting big on explosive growth.
Earlier we mentioned that there is an even better way to understand valuation, so let’s introduce you to Narratives. A Narrative is your personalized story behind a stock. It connects your expectations for the company’s future (such as revenue growth, earnings, and margins) with a financial forecast and a resulting fair value, all in one place.
Rather than just relying on static metrics, Narratives add context to the numbers by letting you articulate the key drivers and risks you believe matter most. On Simply Wall St’s Community page, millions of investors use Narratives to build, compare, and follow these dynamic investment outlooks, making them both accessible and actionable.
Narratives make it easy to monitor your investment rationale: they continuously show how your fair value compares to the current price, and automatically update whenever news or financial results change the outlook.
For example, some investors see Amneal Pharmaceuticals’ global expansion and robust pipeline as reasons to assign a higher fair value, while others point to industry risks and high debt as justification for more conservative estimates. Narratives help you weigh both perspectives, ensuring that your investment decision is shaped by your own view, not just the latest headline.
Do you think there’s more to the story for Amneal Pharmaceuticals? Head over to our Community to see what others are saying!
NasdaqGS:AMRX Community Fair Values as at Nov 2025
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include AMRX.
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