Using the industry peer median P/E multiple (trailing + forward), Bristol-Myers Squibb Company (BMY) has a fair value of $77.22 based on 8 comparable companies in the Drug Manufacturers - General industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Bristol-Myers Squibb CompanyBMY | 121,409 | 17.2x | 9.5x |
| Pfizer Inc.PFE | 156,770 | 20.3x | 9.3x |
| Vertex Pharmaceuticals IncorporatedVRTX | 115,820 | 29.8x | 23.6x |
| HCA Healthcare, Inc.HCA | 108,040 | 17.0x | 16.0x |
| McKesson CorporationMCK | 107,034 | 33.7x | 22.2x |
| CVS Health CorporationCVS | 91,014 | 51.5x | 10.0x |
| Cigna CorporationCI | 72,693 | 12.3x | 9.0x |
| Elevance Health Inc.ELV | 65,020 | 11.7x | 11.4x |
| Zoetis Inc.ZTS | 51,848 | 19.5x | 16.8x |
| Industry Median | 19.9x | 13.7x | |
| (*) Profit after tax | 7,053 | 12,779 | |
| Equity Value | 140,408 | 174,797 | |
| (/) Outstanding shares | 2,041 | 2,041 | |
| Fair Price | $69 | $86 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.