Bristol-Myers Squibb Company (BMY) DCF Valuation
Transparent DCF models put Bristol-Myers Squibb Company (BMY)'s fair value in a range of $86.05 – $267.18 — the low end is TGM's conservative base case (5% FCF growth, 10% discount), the high end the analyst consensus (FMP). Today's price of $56.48 sits below that range — by these conservative assumptions it screens as potentially undervalued.
Reverse DCF: at today's $56.48, the market is pricing in roughly +0.3%/yr free-cash-flow growth over the next decade (at a 10% required return) — versus its actual 5-year FCF CAGR of -2.5%. The price is betting on acceleration above its track record.
Current Price
$56.48
Fair-Value Range
$86.05 – $267.18
Market-Implied Growth
+0.3%/yr
vs -2.5% 5Y actual
BMY DCF Fair Value Calculator
Edit the assumptions to see how they change the estimated fair value. Illustrative model — not investment advice. Defaults to a conservative base case; the analyst (FMP) DCF, where available, is shown as a reference below.
Base inputs: FCF $12.8B · 2.04B shares · net debt $34.9B
Estimated Fair Value
$86.05
+52.3% vs $56.48
Sensitivity — fair value by discount rate × terminal growth
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 5.0%/yr FCF growth and 10-year horizon fixed. Green = above today's $56.48; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 8.0% | $111 | $118 | $125 | $135 | $146 |
| 9.0% | $93.00 | $97.49 | $103 | $109 | $116 |
| 10.0% | $79.23 | $82.42 | $86.05 | $90.18 | $94.96 |
| 11.0% | $68.40 | $70.74 | $73.36 | $76.31 | $79.65 |
| 12.0% | $59.68 | $61.44 | $63.38 | $65.54 | $67.96 |
About Bristol-Myers Squibb Company
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.
- Sector
- Healthcare
- Industry
- Drug Manufacturers - General
- CEO
- Christopher S. Boerner