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Bristol-Myers Squibb Company — Intrinsic Value & Fair Price

BMY
NYSEHealthcareDrug Manufacturers - GeneralCIK 0000014272bms.comAbout BMY
Last close · Oct 16, 202659.75−0.82 (−1.35%)
Market cap$122.1B
Model value · DCF · Perpetuity growth · 5y
105.53
Bristol-Myers Squibb closed at $59.75 — undervalued by 43% vs model.
56.32the model's range240.97

DCF · Perpetuity growth · 5y leads for a mature, steady company — positive operating income and three years of positive free cash flow. From a five-year discounted cash flow.

Other models
24.04 – 153.04
Wall St. target
65.00 8% below
Below model, 1y
14 of 21 days

Price and model value

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What the marks mean
Daily close

Dividends

Quarterly · as of Oct 16, 2026
Yield, trailing 12 months
4.22%
Past 2 years
low 3.69%high 5.82%
Dividends per share, a year at a time
$1.96Sep ’21$2.16Oct ’22$2.28Oct ’23$2.40Oct ’24$2.48Oct ’25$2.52TTM
Dividends / free cash flow, FY2025
39.3%
Raised
18 years in a row
Growth, 5 yrs
5.2% a year
Last change
+1.6% · Jan 2026
Every payment, with ex-dates · latest $0.63, paid Nov 2, 2026

Research on BMY

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How it is valued

Valued asMature & stable
Low/slowing growth (~3% recent)Moderate margins (15% net margin)Strong dividend yieldHighly cyclical earningsHigh leverage (D/E 2.4x)Strong FCF yield (10.5%)
What growth the price implies: the reverse DCF

Key figures

FY2025 · chosen for mature companies
P/E
17.3×
EV / EBITDA
10.3×
FCF yield
10.5%
Dividend yield, TTM
4.22%
Beta
0.23
Cost of capital (WACC)
6.21%
Full financials

Analyst actions

third-party, quoted
10-12Jefferies · target76.00
10-08Cantor Fitzgerald · target53.00
10-07Morgan Stanley · target41.00
10-05Leerink Partners · “Market Perform” from “Outperform”downgrade
Ratings, targets and estimates

Comparable companies

by business, not by industry label
1 more company lists BMY as a comparable
Side by side:vs PFE

The weekly

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About Bristol-Myers Squibb

Bristol-Myers Squibb Company operates as a global biopharmaceutical entity, actively involved in the research, development, licensing, production, and worldwide commercialization of its medicinal portfolio. The company's therapeutic areas span hematology, oncology, cardiovascular health, immunology, fibrotic conditions, neuroscience, and infectious diseases like COVID-19. Its significant pharmaceutical offerings include Revlimid, an oral immunomodulatory agent for multiple myeloma, and Eliquis, an oral anticoagulant crucial for reducing stroke risk and systemic embolism in non-valvular atrial fibrillation, as well as treating deep vein thrombosis and pulmonary embolism. The portfolio also features Opdivo, utilized across various anti-cancer indications; Pomalyst/Imnovid, prescribed for multiple myeloma patients; and Orencia, targeting active rheumatoid arthritis and psoriatic arthritis in adults. Other key therapies are Sprycel, employed in the management of Philadelphia chromosome-positive chronic myeloid leukemia; Yervoy, indicated for patients with unresectable or metastatic melanoma; and Abraxane, a protein-bound chemotherapy formulation. Furthermore, Bristol-Myers Squibb offers Reblozyl, addressing anemia in adult patients with beta thalassemia; Empliciti, another treatment option for multiple myeloma; and Zeposia, designed to treat relapsing forms of multiple sclerosis. Revolutionary treatments like Breyanzi, a CD19-directed genetically modified autologous T cell immunotherapy for adult patients battling relapsed or refractory large B-cell lymphoma, are also part of its lineup. Completing its product range are Inrebic, an oral kinase inhibitor specifically for adult myelofibrosis, and Onureg, used in the treatment of adult patients with acute myeloid leukemia (AML). Bristol-Myers Squibb distributes its pharmaceutical products through a diverse network encompassing wholesalers, distributors, pharmacies, retail outlets, hospitals, clinics, and governmental organizations. Founded in 1887 and formerly known as Bristol-Myers Company, the firm maintains its headquarters in New York, New York.

CEO
Christopher Boerner
Headquarters
Princeton, NJ
Employees
32,500
IPO
1972-06-01
Full company profile

Model estimates for research reference only, not investment advice. Every model rests on assumptions that may not match what happens; the formulas are in how we value a stock.