Assessing Amphastar Pharmaceuticals (AMPH) Valuation After Mixed Returns And A 13.9% Undervaluation Narrative
What is moving Amphastar Pharmaceuticals now?
Amphastar Pharmaceuticals (AMPH) has drawn investor attention after its recent share performance, with the stock around $27.55 and short term returns mixed between the past week, month and past 3 months.
See our latest analysis for Amphastar Pharmaceuticals.
At around $27.55, Amphastar Pharmaceuticals has given investors a mixed ride, with recent share price returns over the past week and month soft, while the 90 day share price return of 5.72% and 5 year total shareholder return of 50.14% point to a longer term story that differs from the weaker 1 year total shareholder return of 13.20%.
If Amphastar’s recent moves have you reassessing your watchlist, it could be a good moment to see what else is out there through our 24 healthcare AI stocks as another area of potential interest.
With Amphastar’s shares sitting near $27.55 after a 1 year total return decline of 13.20% but a 5 year total return of 50.14%, is the market overlooking value here or already accounting for future growth?
Most Popular Narrative: 13.9% Undervalued
With Amphastar Pharmaceuticals last closing at $27.55 against a narrative fair value of $32, the current price sits below what this widely followed view suggests, and that gap is built on specific expectations for future earnings, margins and valuation multiples.
The company's revenue base remains heavily concentrated in a few key products, with recent declines already noted in glucagon and epinephrine due to market competition and new entrants. If this persists and pipeline launches face delays or underperform, earnings risk is elevated.
Want to see what kind of revenue growth, margin compression and future P/E multiple this narrative is banking on, and how those assumptions stack up over the next few years? The numbers behind that $32 figure might surprise you, especially how earnings, share count and the discount rate all fit together.
Result: Fair Value of $32 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, if Amphastar’s expanded US manufacturing and broader pipeline gain traction faster than expected, they could challenge assumptions around margin pressure and limited revenue growth.
Find out about the key risks to this Amphastar Pharmaceuticals narrative.
Build Your Own Amphastar Pharmaceuticals Narrative
If you feel this story does not quite fit your view or you prefer to test the assumptions yourself, you can quickly build a custom thesis in just a few minutes, starting with Do it your way.
A great starting point for your Amphastar Pharmaceuticals research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
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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.
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