Market Pulse44Neutral

Bristol-Myers Squibb CompanyOpportunity Rank #118(BMY) Intrinsic Value & DCF Analysis (2026)

Sector: Healthcare

Current Price

$54.70

Last updated: Jun 23, 2026

Price vs Intrinsic Value

$54.70
Price
$125.43
Intrinsic Value
Undervalued by 129%MOS: $100.34

Fundamental Score

44/100
Bearish

Weighted across 6 signals

Narrative Score

68/100
Improving

-1 vs previous

Trend Score

32/100
Weak

As of 2026-06-22

The intrinsic value of Bristol-Myers Squibb Company (BMY) is estimated at $125.43 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $54.70, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a 5.26% long-term growth rate and an 8.50% discount rate (calculated: 6.19%), reflecting expected future free cash flow and cost of capital.

The intrinsic value of Bristol-Myers Squibb Company (BMY) is estimated at $125.43 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $54.70, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a 5.26% long-term growth rate and an 8.50% discount rate (calculated: 6.19%), reflecting expected future free cash flow and cost of capital.

Valuation Details

$125.43
129.31% upside
20% margin of safety: $100.34
Years: 10Growth Rate: 5.26%
Want to create your own valuation? Create a free account.

Capital Efficiency

Average Quarterly ROIC
3.75%
Cost of Capital (estimated)11%
Value StatusUnderperforming Capital

The company is earning below its required return. This may indicate inefficient use of capital or excess cash that isn't being reinvested.

Complete historical ROIC is available with
.

Fundamental Details

44/100
BearishWeighted across 6 signals
DCF Discount
129.3% discount to price
100
FCF Yield
13.2% trailing FCF yield
100
ROIC vs WACC
ROIC 3.8% vs WACC 11.0% (0.3x)
17
Net Debt / FCF
2.3x net debt to FCF
21
Buybacks
Share count growing
30
FCF CAGR (5Y)
-0.1% 5Y FCF CAGR (adjusted)
0
Strengths: DCF Discount, FCF Yield. Concerns: ROIC vs WACC, Net Debt / FCF.

Narrative Details

68/100
Improving
-1 vs previous · +2 new driversVs 6-Month Baseline:Low (17th pct)Weighted across 6 recent drivers
Trend: Deteriorating downConfidence: 87%Updated: 4h ago
Sources: 102 (99 News · 3 Analyst)
Drivers(last 30 days)
85 news sentiment+1.5
10 regulatory scrutiny+0.2
2 legal risk+0.1
Downgrade headlines-0.0
Earnings beat-0.0
3 analyst reiterations0.0

Trend Details

32/100
WeakAs of 2026-06-22308 daily bars used
3M Relative Strength vs SPY-19.6%
Distance from 52-Week High-12.3%
6M Relative Strength vs SPY-8.7%
Price vs 21 EMA34 · -2.6%
Price vs 50 EMA31 · -4.0%
21 EMA vs 50 EMA38 · -1.4%
3M RS vs SPY4 · -19.6%
6M RS vs SPY28 · -8.7%
Distance from 52W High75 · -12.3%

Investment Coach

Updating... 12d ago
WATCHConfidence: 42%
Thesis
Bristol-Myers Squibb Company is currently trading at a significant discount with an estimated fair value 133% above its current price, supported by a moderately positive narrative score. However, the company's fundamentals are weak, with returns trailing its cost of capital, indicating potential operational challenges.
Key Risk
The primary risk is the sustained negative spread between ROIC and WACC, which may continue to pressure returns and valuation.
Signals To Watch
  • Monitor whether valuation discount remains above 10%.
  • Track ROIC vs WACC spread for sustained improvement.
  • Follow narrative trend for meaningful shifts in the score direction.
Ask the Coach - Available with
Historical Growth Rates
Free Cash Flow- - -Trend CAGR: 5.26%5 Year CAGR (Adjusted): -1.60%

Free Cash Flow (in millions)

TTM20252024202320222021202020192018201720162015201420132012201120102009200820072006
$14,704$15,467$16,438$15,069$14,184$17,180$14,805$9,046$8,017$6,330$4,273$2,925$3,674$4,082$7,489$5,207$4,915$4,795$4,648$3,996$2,876

How Intrinziq Estimates Fair Value

Intrinziq estimates Bristol-Myers Squibb Company's intrinsic value using a discounted cash flow (DCF) model based on free cash flow trends and a market-based discount rate. The model projects future cash flows over ten years and discounts them using a market return assumption to estimate fair value.

Bristol-Myers Squibb CompanyHealthcare

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.