Bristol-Myers Squibb Valuation

Is BMY undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

Below Fair Value
Significantly Below Fair Value
Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of BMY when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: BMY (CHF54.24) is trading below our estimate of fair value (CHF165.01)

Significantly Below Fair Value: BMY is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for BMY?

Key metric: As BMY is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for BMY. This is calculated by dividing BMY's market cap by their current revenue.
What is BMY's PS Ratio?
PS Ratio	2.2x
Sales	US$46.51b
Market Cap	US$100.34b

BMY key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	3.2x
Enterprise Value/EBITDA	7.7x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does BMY's PS Ratio compare to its peers?

The above table shows the PS ratio for BMY vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PS	Estimated Growth	Market Cap
Peer Average	3.7x
NOVN Novartis	4.1x	2.2%	CHF 185.4b
ROG Roche Holding	3.4x	3.9%	CHF 210.3b
GALD Galderma Group	5.3x	11.6%	CHF 20.3b
SDZ Sandoz Group	1.9x	5.7%	CHF 17.1b
BMY Bristol-Myers Squibb	2.2x	-2.6%	CHF 100.3b

Price-To-Sales vs Peers: BMY is good value based on its Price-To-Sales Ratio (2.2x) compared to the peer average (3.8x).

Price to Sales Ratio vs Industry

How does BMY's PS Ratio compare vs other companies in the European Pharmaceuticals Industry?

23 Companies	Price / Sales	Estimated Growth	Market Cap

23 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: BMY is good value based on its Price-To-Sales Ratio (2.2x) compared to the European Pharmaceuticals industry average (4.1x).

Price to Sales Ratio vs Fair Ratio

What is BMY's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

BMY PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	2.2x
Fair PS Ratio	5.8x

Price-To-Sales vs Fair Ratio: BMY is good value based on its Price-To-Sales Ratio (2.2x) compared to the estimated Fair Price-To-Sales Ratio (5.8x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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