Bristol-Myers Squibb (BMY) has been drawing attention after its shares closed at $56.72, leaving investors weighing how recent price moves and mixed growth metrics might fit into a broader long term thesis.
See our latest analysis for Bristol-Myers Squibb.
The recent 1 day share price return of 4.23% builds on short term momentum, with a 30 day share price return of 9.77% and a 90 day gain of 26.95%, while the 3 year total shareholder return of 9.60% decline shows that longer term holders have had a different experience.
If Bristol-Myers Squibb has you looking more broadly at large healthcare names, it could be a good moment to scan other pharma stocks with solid dividends that fit your income and risk preferences.
With the shares now close to analyst targets yet sitting on what some models flag as a 55.67% intrinsic discount, the real question is whether BMY is still on sale or whether the market already reflects its future potential.
With Bristol-Myers Squibb last closing at $56.72 against a narrative fair value of about $53.55, the valuation case hinges on how investors view future earnings power versus softer top line expectations.
Recent operational streamlining (cost-cutting/profitability initiatives and targeted capital deployment) enables BMS to reinvest in clinical programs with high value potential, while supporting disciplined margin improvement and free cash flow stability.
Curious what kind of margin uplift and earnings path need to materialise for this to add up? The narrative focuses on stronger profitability, rising return on equity and a richer future earnings multiple to offset revenue pressure. Want to see how those moving parts fit together in the full valuation story?
Result: Fair Value of $53.55 (OVERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, this hinges on BMY clearing some real hurdles, particularly the patent cliffs around key drugs and ongoing pressure on U.S. drug pricing and regulation.
Find out about the key risks to this Bristol-Myers Squibb narrative.
While the narrative fair value of about $53.55 suggests Bristol-Myers Squibb looks 5.9% overvalued, the market’s own P/E tells a different story. At 19.1x earnings, the shares sit slightly below the US pharmaceuticals industry on 19.6x and well below peers on 25.5x.
Our fair ratio estimate of 23.9x is also higher than where the stock trades today. This points to a valuation gap that could either close if sentiment improves or stay in place if concerns around growth and debt persist. Which side of that trade off do you think is more realistic?
See what the numbers say about this price — find out in our valuation breakdown.
NYSE:BMY P/E Ratio as at Jan 2026
If this framework does not quite fit how you see BMY, you can stress test the same data, shape your own thesis and Do it your way in just a few minutes.
A great starting point for your Bristol-Myers Squibb research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.
If BMY has sparked your curiosity, do not stop here. Use curated stock lists to pressure test your thinking and keep your watchlist full of fresh possibilities.
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.
Companies discussed in this article include BMY.
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