Is BMY overvalued or undervalued?

At $59.75 the price sits below every lens we ran. We don't call BMY overvalued or undervalued from a range. This is an educational estimate, not advice.

What discount rate is used for BMY?

A WACC of 6.8% and a terminal growth rate of 2.5%.

Is Bristol-Myers Squibb stock undervalued?

TickerWorth's fair-value range for Bristol-Myers Squibb Company (BMY) is $75.37 – $149.29 against a market price of $59.75. Priced below our range. We publish a range here, not one number, so we do not call it over- or undervalued. This is a model estimate, not investment advice.

Bristol-Myers Squibb (BMY) DCF valuation and fair value

Our fair-value range for Bristol-Myers Squibb Company (BMY) is $75.37 – $149.29, built on a 6.8% discount rate (WACC) and 2.5% terminal growth. It blends our discounted-cash-flow model with other valuation lenses. Every assumption is listed on this page with its source.

What growth is priced into Bristol-Myers Squibb stock?

Today's price implies revenue growth of −10.1% a year for 5 years; our model assumes −6.3% a year on average over the same horizon. This is a reverse DCF: it holds our cash-flow model's other inputs and solves for the revenue growth that makes the model equal today's price of $59.75. A model estimate, not investment advice.

Bristol-Myers Squibb (BMY) insider trading

The most recent insider filing (SEC Form 4) for Bristol-Myers Squibb Company (BMY): Gallman Cari, EVP, General Counsel, option exercise on 2026-10-02. The latest filings are listed on this page. A disclosure, not a signal to trade.

BMY · Intrinsic value

Is Bristol-Myers Squibb Company (BMY) overvalued or undervalued?

Name: Bristol-Myers Squibb Company (BMY) DCF intrinsic value
Creator: TickerWorth

As of Oct 19, 2026, TickerWorth publishes a fair-value range of $75.37 – $149.29 for Bristol-Myers Squibb Company (BMY), against the delayed market price of $59.75: priced below our range. It is a range, not a single number, so we do not call it over- or undervalued. It is a model estimate, and every input behind it is sourced below.

Model by Miraaj Patel · generated from a hand-researched model · Updated Oct 19, 2026 · How these pages are made

Open full BMY analysis

What is BMY worth?

Fair-value range: $75.37 – $149.29; A range by design: peer multiples and our researched mid-cycle DCF.
Market price: $59.75
Gap to fair value: —
Verdict: Priced below our range

Price as of 19 Oct 2026, 12:46 UTC · Prices are delayed.We publish this company as a range by design, not because our valuation lenses disagree, and we do not collapse it to a single number. We do not call it over- or undervalued from a range.

Fair-value range against the delayed market price: Priced below our range.

Reverse DCF: Today's price implies revenue growth of −10.1% a year for 5 years; our model assumes −6.3% a year on average over the same horizon.

What is BMY's TickerWorth Score?

A70/100

Scores higher than almost every company we compare it with

Compared with Healthcare companies in US

Its strongest point: trades below our estimate of what it's worth. Its weakest: balance sheet looks stretched.

Value · 75 of 100
Cheaper than 75% of Healthcare companies in US
Price vs worth · 100 of 100
Quality · 84 of 100
More profitable than 84% of Healthcare companies in US
Financial health · 30 of 100
Financially stronger than 30% of Healthcare companies in US
Growth · 57 of 100
Growing faster than 57% of Healthcare companies in US
Momentum · 60 of 100
Outperformed 60% of Healthcare companies in US over the past year

Confidence: High confidence · Scored 19 Oct 2026, 12:46 UTC

Get the Undervalued Company of the Week.

Where the numbers come from

Hand-researched model

What the modeller flagged

THE FORECAST DELIBERATELY CONTAINS THREE NEGATIVE REVENUE YEARS (2027-29) and the site will therefore publish BMY as a range. This is the honest forecast, not an error: it is built product by product from the 10-K exclusivity table and is kept as is.
TERMINAL VALUE IS ~77% OF ENTERPRISE VALUE — above the 75% danger line. With the five explicit years containing the cliff, most of the answer rests on what BMY looks like after 2030 and on 2.5% growth forever from a trough. Sensitivity range is wide (~$46-185).
NO PIPELINE SUCCESS IS CREDITED explicitly. Milvexian (Librexia AF and STROKE readouts expected 2026, after Librexia ACS failed), admilparant, pumitamig, iza-bren and Cobenfy's new indications are all binary. The 'rest of growth portfolio' path (+11-20%/yr) carries launched products and generic new-launch momentum only. A positive milvexian AF result is the single biggest upside not in the model.
ROYALTY AND LICENSING INCOME EXCLUDED. ~$381M in H1 2026 ($1,093M in FY2025) sits in other income, below EBIT, and is not valued — conservative; part of it is one-off licensing. Treated as a perpetual ~$0.76B/yr it would add roughly $6/share (~$81.79). The $1.1B/yr of divestiture royalties on diabetes products expired at the end of 2025 and is correctly gone.
Year-1 FCF in the model is ~$11,971M vs FY2025 reported OCF-less-capex of $12,845M (-7%, inside the 20% line). The model charges ~$2.5B of normalized BD that BMY books in investing cash flow, offset by excluding interest (~$1.6B after tax is not in unlevered FCF) and by 2026's higher Eliquis net price.
CONTINGENCIES NOT MODELED: the Celgene CVR litigation (plaintiff alleges BMY avoided a $6.4B CVR obligation; in December 2025 the court denied BMY's motion to dismiss in substantial part; no trial date) and Eliquis formulation-patent litigation (Azurity 505(b)(2)). A CVR loss would be a debt-like claim of up to ~$3/share per $6B.
POLICY: the U.S. Government Agreement (Dec 2025) gives tariff relief until January 2029 and exempts BMY from future US pricing mandates while in effect; IRA negotiated prices apply to Eliquis (2026), Pomalyst (2027) and Orencia (2028). Further IRA selections (e.g. Opdivo, Reblozyl) would accelerate erosion before patent expiry and are not modeled.
SBC ($553M in FY2025, 1.1% of revenue) stays expensed inside the non-GAAP operating lines; dilution is captured by the 2,048M diluted count.

Why BMY gets a range, not one number

At a recent price of $59.75, Bristol-Myers Squibb Company (BMY) sits below every lens we ran: our valuation lenses put the business somewhere between $75.37 and $149.29 per share. For a cyclical we value through the cycle we publish a range only (peer multiples and our researched mid-cycle DCF): where in the cycle the business sits decides where in that range it lands, and a single figure would claim we know that precisely. This is an educational model, not a price target or a recommendation.

Read the full reasoning

The valuation discounts Bristol-Myers Squibb Company's projected free cash flows at a weighted-average cost of capital (WACC) of 6.8%, with a long-run terminal growth rate of 2.5%. About 77% of the enterprise value comes from the terminal value — the portion beyond the explicit forecast window — which is typical for a stable, cash-generative business and a reminder that small changes in the discount rate or terminal growth assumption swing the intrinsic value meaningfully.

Running the DCF in reverse — solving for the growth the current price already assumes — the market is implying roughly -10.1% annual revenue growth for BMY. Our base case instead compounds to about -6.3% a year over the same forecast, so the market is pricing in slower growth than our base case. The reverse-DCF is a quick sanity check: it reframes 'is this stock cheap?' as 'do I believe the growth the price requires?' rather than arguing over a single point estimate of fair value.

Sensitivity matters more than any single number. Across a reasonable band of discount-rate assumptions, BMY's modeled DCF value ranges from about $45.66 to $185.30 per share. If that range still sits below today's price, the market is optimistic relative to the model across the whole band; if it brackets the price, the stock is roughly fairly valued on our assumptions. Use the interactive slider to see exactly where your own cost-of-capital view lands.

How to read this page: the DCF fair value is what Bristol-Myers Squibb Company would be worth if its cash flows grow as modeled and are discounted at the stated WACC. The assumptions table shows every input and its source; the reverse-DCF shows what the market believes; the sensitivity band shows how fragile the answer is. None of this is investment advice — it is a transparent, auditable framework for forming your own view of BMY's intrinsic value. Figures update as new filings and prices come in.

Every input behind BMY's DCF

Input	Value	Source
Base-year revenueBMY FY2025 10-K (accession 0000014272-26-000004, filed 2026-02-11): us-gaap:Revenues FY2025 = $48,194M, essentially flat on FY2024's $48,300M (-1% ex-FX). The flat total hides the whole story: Growth Portfolio +17% to $26,409M, Legacy Portfolio -15% to $21,785M (Eliquis $14,443M; Revlimid $2,951M; Pomalyst $2,733M; Sprycel $493M; Abraxane $368M). CROSS-CHECK: H1 2026 revenue $24,462M, +4.2% on H1 2025's $23,470M (Q2 alone $12,973M, +6%). UNCHANGED as the base — the DCF grows this figure by forecast.revenue_growth, and FY2026 is guided.	$48,194,000,000	BMY FY2025 10-K (accession 0000014272-26-000004, filed 2026-02-11): us-gaap:Revenues FY2025 = $48,194M, essentially flat on FY2024's $48,300M (-1% ex-FX). The flat total hides the whole story: Growth Portfolio +17% to $26,409M, Legacy Portfolio -15% to $21,785M (Eliquis $14,443M; Revlimid $2,951M; Pomalyst $2,733M; Sprycel $493M; Abraxane $368M). CROSS-CHECK: H1 2026 revenue $24,462M, +4.2% on H1 2025's $23,470M (Q2 alone $12,973M, +6%). UNCHANGED as the base — the DCF grows this figure by forecast.revenue_growth, and FY2026 is guided.
Base EBIT marginESTIMATEAssumption — BMY Q4/FY2025 earnings release, 8-K Ex-99.1 (accession 0000014272-26-000002, filed 2026-02-05) + BMY FY2025 10-K (accession 0000014272-26-000004, filed 2026-02-11): DERIVED, and the treatment of Acquired IPRD is the point. BMY's GAAP operating lines for FY2025: revenue $48,194M - cost of products sold $13,936M - SG&A $7,267M - R&D $9,951M - Acquired IPRD $3,721M - amortization of acquired intangibles $3,317M = $10,002M (20.75%). That figure is not usable as a run-rate because two lines are lumpy deal accounting: Acquired IPRD was $913M in 2023, $13,373M in 2024 (Karuna $12,122M) and $3,721M in 2025, and $94M in H1 2026; acquired-intangible amortization is the non-cash tail of Celgene and other past deals and fell from $8,872M (2024) to $3,317M (2025) to $874M in H1 2026 as Revlimid and Pomalyst rights were fully amortized. TREATMENT: start from BMY's own non-GAAP operating lines (gross profit $35,000M - SG&A $7,149M - R&D $9,492M = $18,359M, 38.09%), which exclude amortization, $949M of non-cash intangible/IPRD impairments and small site-exit/acquisition charges, then charge a NORMALIZED business-development cost of 5.0% of revenue ($2,410M) in place of the actual $3,721M of Acquired IPRD: (18,359 - 2,410) / 48,194 = 33.09%. BMY's own non-GAAP EPS INCLUDES Acquired IPRD, so this is the company's definition with the lumpy line smoothed, not a flattering adjustment. On the same derivation with the ACTUAL IPRD, FY2025 was 30.37%. Because amortization is excluded here, D&A below is depreciation only (consistent). CROSS-CHECK H1 2026: non-GAAP GP $17,343M - SG&A $3,442M - R&D $4,554M = $9,347M (38.2% before BD), Acquired IPRD only $94M.	33.1%	ESTIMATEAssumption — BMY Q4/FY2025 earnings release, 8-K Ex-99.1 (accession 0000014272-26-000002, filed 2026-02-05) + BMY FY2025 10-K (accession 0000014272-26-000004, filed 2026-02-11): DERIVED, and the treatment of Acquired IPRD is the point. BMY's GAAP operating lines for FY2025: revenue $48,194M - cost of products sold $13,936M - SG&A $7,267M - R&D $9,951M - Acquired IPRD $3,721M - amortization of acquired intangibles $3,317M = $10,002M (20.75%). That figure is not usable as a run-rate because two lines are lumpy deal accounting: Acquired IPRD was $913M in 2023, $13,373M in 2024 (Karuna $12,122M) and $3,721M in 2025, and $94M in H1 2026; acquired-intangible amortization is the non-cash tail of Celgene and other past deals and fell from $8,872M (2024) to $3,317M (2025) to $874M in H1 2026 as Revlimid and Pomalyst rights were fully amortized. TREATMENT: start from BMY's own non-GAAP operating lines (gross profit $35,000M - SG&A $7,149M - R&D $9,492M = $18,359M, 38.09%), which exclude amortization, $949M of non-cash intangible/IPRD impairments and small site-exit/acquisition charges, then charge a NORMALIZED business-development cost of 5.0% of revenue ($2,410M) in place of the actual $3,721M of Acquired IPRD: (18,359 - 2,410) / 48,194 = 33.09%. BMY's own non-GAAP EPS INCLUDES Acquired IPRD, so this is the company's definition with the lumpy line smoothed, not a flattering adjustment. On the same derivation with the ACTUAL IPRD, FY2025 was 30.37%. Because amortization is excluded here, D&A below is depreciation only (consistent). CROSS-CHECK H1 2026: non-GAAP GP $17,343M - SG&A $3,442M - R&D $4,554M = $9,347M (38.2% before BD), Acquired IPRD only $94M.
Forecast revenue growthESTIMATEAssumption — TickerWorth's 5-year explicit forecast	3% → -3% → -17% → -13% → 0%	ESTIMATEAssumption — TickerWorth's 5-year explicit forecast
Risk-free rateUS 10Y Treasury constant maturity (FRED DGS10): 5.24% on 2026-10-01, the latest published observation; the program-wide rate shared by every researched model in this run.	5.2%	US 10Y Treasury constant maturity (FRED DGS10): 5.24% on 2026-10-01, the latest published observation; the program-wide rate shared by every researched model in this run.
BetaESTIMATEAssumption — normalized estimate (Blume-adjusted published beta, cross-checked): Published 5Y-monthly beta is 0.184 (yfinance, read 2026-10-05); my own 60-month regression on dividend-adjusted closes vs the S&P 500 gives 0.188, so it is not a data error. NORMALIZED UP to 0.45 with the standard Blume adjustment (0.67 x 0.184 + 0.33 = 0.453), the method this tracker used for McDonald's and AT&T. CONSERVATIVE: it raises WACC and LOWERS the value. Reason: at 0.184 BMY's cost of equity would be 6.2%, roughly equal to the ~6.1% it would pay on a new bond — equity facing a 2028 patent cliff cannot sensibly be priced like senior debt. The low figure measures low CORRELATION (BMY fell through 2023-24 while the market rose), not low risk. Two independent cross-checks land in the same place: my 10-year monthly regression (Oct-2016 to Sep-2026, 120 months) gives 0.408, and the 10-year regressions of PFE 0.534, MRK 0.300, JNJ 0.463, ABBV 0.537 have a median of ~0.50. Each 0.1 of beta is worth roughly $7-8/share; the published 0.184 would give ~$100.54.	0.45	ESTIMATEAssumption — normalized estimate (Blume-adjusted published beta, cross-checked): Published 5Y-monthly beta is 0.184 (yfinance, read 2026-10-05); my own 60-month regression on dividend-adjusted closes vs the S&P 500 gives 0.188, so it is not a data error. NORMALIZED UP to 0.45 with the standard Blume adjustment (0.67 x 0.184 + 0.33 = 0.453), the method this tracker used for McDonald's and AT&T. CONSERVATIVE: it raises WACC and LOWERS the value. Reason: at 0.184 BMY's cost of equity would be 6.2%, roughly equal to the ~6.1% it would pay on a new bond — equity facing a 2028 patent cliff cannot sensibly be priced like senior debt. The low figure measures low CORRELATION (BMY fell through 2023-24 while the market rose), not low risk. Two independent cross-checks land in the same place: my 10-year monthly regression (Oct-2016 to Sep-2026, 120 months) gives 0.408, and the 10-year regressions of PFE 0.534, MRK 0.300, JNJ 0.463, ABBV 0.537 have a median of ~0.50. Each 0.1 of beta is worth roughly $7-8/share; the published 0.184 would give ~$100.54.
Terminal growthESTIMATEAssumption — house default: House default 2.5%, kept for comparability. FLAG: this is a real judgement for BMY, not a formality. The terminal year (2030) is the trough after Eliquis and US Opdivo, and 2.5% forever assumes BMY keeps replacing each wave of patent expiries — and more are scheduled: Opdivo EU 2030, Reblozyl US 2031, Breyanzi/Zeposia/Sotyktu 2033. The normalized 5% BD charge is what pays for that replacement. 1.5% takes the value to ~$61.72; 0% to ~$48.73. Must remain < WACC of 6.83%.	2.5%	ESTIMATEAssumption — house default: House default 2.5%, kept for comparability. FLAG: this is a real judgement for BMY, not a formality. The terminal year (2030) is the trough after Eliquis and US Opdivo, and 2.5% forever assumes BMY keeps replacing each wave of patent expiries — and more are scheduled: Opdivo EU 2030, Reblozyl US 2031, Breyanzi/Zeposia/Sotyktu 2033. The normalized 5% BD charge is what pays for that replacement. 1.5% takes the value to ~$61.72; 0% to ~$48.73. Must remain < WACC of 6.83%.
Diluted sharesBMY Q2 2026 earnings release, 8-K Ex-99.1 (accession 0000014272-26-000018, filed 2026-07-30): Weighted-average diluted shares 2,048M for Q2 2026 and for H1 2026 (FY2025: 2,039M). BMY has repurchased no stock since 2023 ($5,155M that year), so the count drifts up ~0.4%/yr with stock compensation. Shares outstanding 2,042.7M (yfinance).	2,048M	BMY Q2 2026 earnings release, 8-K Ex-99.1 (accession 0000014272-26-000018, filed 2026-07-30): Weighted-average diluted shares 2,048M for Q2 2026 and for H1 2026 (FY2025: 2,039M). BMY has repurchased no stock since 2023 ($5,155M that year), so the count drifts up ~0.4%/yr with stock compensation. Shares outstanding 2,042.7M (yfinance).
Market priceDelayed quote · as of 2026-10-19 12:46 UTC	$59.75	Delayed quote · as of 2026-10-19 12:46 UTC

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What does Bristol-Myers Squibb Company do?

What does it do?

Bristol-Myers Squibb discovers, develops, and sells biopharmaceutical products worldwide, with a focus on oncology, hematology, immunology, cardiovascular, and neuroscience treatments. The company's major products include Opdivo (cancer), Orencia (rheumatoid arthritis), Zeposia (multiple sclerosis), and several other specialty drugs, serving approximately 32,500 employees.

How does it make money?

The company generated $49.2 billion in total revenue and maintains a gross margin of 71.7%, with an operating margin of 34.4% and net profit margin of 18.9%, indicating it converts revenue into profit at each stage of operations.

Is it financially healthy?

Bristol-Myers Squibb shows mixed financial health: it has a current ratio of 1.53 (indicating ability to cover short-term obligations), but carries significant debt with a debt-to-equity ratio of 2.02, meaning it has $2.02 in debt for every $1.00 of equity.

Who at BMY filed insider trades?

Recent insider filings for Bristol-Myers Squibb Company
Date	Insider	Relationship	What happened	Value	Filing
2 Oct 2026	Gallman Cari	EVP, General Counsel	Option exercise	—	Form 4 for Gallman Cari (opens sec.gov in a new tab)
2 Oct 2026	Gallman Cari	EVP, General Counsel	Shares withheld (tax)	$142,601.80	Form 4 for Gallman Cari (opens sec.gov in a new tab)
9 Sept 2026	Massacesi Cristian	EVP,Chief Med Offr,Head of Dev	Open-market sale	$403,497.93	Form 4 for Massacesi Cristian (opens sec.gov in a new tab)
1 Sept 2026	Short Bartie Wendy	EVP, Corporate Affairs	Option exercise	$82,713.12	Form 4 for Short Bartie Wendy (opens sec.gov in a new tab)
1 Sept 2026	Short Bartie Wendy	EVP, Corporate Affairs	Shares withheld (tax)	$42,360.36	Form 4 for Short Bartie Wendy (opens sec.gov in a new tab)
25 Aug 2026	Holzer Phil M	SVP and Controller	Open-market sale	$33,750.00	Form 4 for Holzer Phil M (opens sec.gov in a new tab)

A disclosure, not a signal to trade. Source: SEC EDGAR (Form 4). Older filings and the 90-day buying-and-selling read are part of Pro. See plans

Common questions

What is BMY's intrinsic value?
TickerWorth's valuation lenses put Bristol-Myers Squibb Company (BMY) between $75.37 and $149.29 per share, versus a market price of $59.75. For a cyclical we value through the cycle we publish a range only (peer multiples and our researched mid-cycle DCF): where in the cycle the business sits decides where in that range it lands, and a single figure would claim we know that precisely.
Is BMY overvalued or undervalued?
At $59.75 the price sits below every lens we ran. We don't call BMY overvalued or undervalued from a range. This is an educational estimate, not advice.
What discount rate is used for BMY?
A WACC of 6.8% and a terminal growth rate of 2.5%.
Is Bristol-Myers Squibb stock undervalued?
TickerWorth's fair-value range for Bristol-Myers Squibb Company (BMY) is $75.37 – $149.29 against a market price of $59.75. Priced below our range. We publish a range here, not one number, so we do not call it over- or undervalued. This is a model estimate, not investment advice.
Bristol-Myers Squibb (BMY) DCF valuation and fair value
Our fair-value range for Bristol-Myers Squibb Company (BMY) is $75.37 – $149.29, built on a 6.8% discount rate (WACC) and 2.5% terminal growth. It blends our discounted-cash-flow model with other valuation lenses. Every assumption is listed on this page with its source.
What growth is priced into Bristol-Myers Squibb stock?
Today's price implies revenue growth of −10.1% a year for 5 years; our model assumes −6.3% a year on average over the same horizon. This is a reverse DCF: it holds our cash-flow model's other inputs and solves for the revenue growth that makes the model equal today's price of $59.75. A model estimate, not investment advice.
Bristol-Myers Squibb (BMY) insider trading
The most recent insider filing (SEC Form 4) for Bristol-Myers Squibb Company (BMY): Gallman Cari, EVP, General Counsel, option exercise on 2026-10-02. The latest filings are listed on this page. A disclosure, not a signal to trade.