Bristol-Myers Squibb’sÂ (NYSE:BMY) fair price estimate based on expected 2019 earnings is $59, according to Trefis estimates. This is in line with the current market price of around $58. Bristol-Myers Squibb is a biopharmaceutical company that discovers, develops, and sells pharmaceutical products globally. Its customers includes chain stores (Walgreens, CVS, Rite-Aid, Wal-Mart), clinics, long-term care facilities, HMO, federal facilities, non-federal institutions, and mail order pharmacies. It competes with other pharmaceutical companies, including Johnson & Johnson, Pfizer, Roche, and Merck. In this note we discuss our stock price valuation for Bristol-Myers Squibb. You can look at our interactive dashboard analysis ~ Bristol-Myers Squibb Valuation: Expensive Or Cheap? ~ for more details.
We Can Break Down Bristol-Myers Squibb’s Stock Price Estimate Into 4 Factors: 1. Total Revenue, 2. Net Income Margin, 3. No. of Shares, And 4. P/E Multiple.
1. Bristol-Myers Squibb’s Total Revenues Could Grow 7% Y-o-Y To $24.0 Billion In 2019. Look At Our Interactive Dashboard Analysis ~ How Does Bristol-Myers Squibb Make Money? ~ For A More In Depth View On The Company’s Revenues.
2. Bristol-Myers Squibb’s Adjusted Net Income Grew From $4.8 Billion In 2016 To $6.5 Billion In 2018, And It Will Likely Be Around $6.9 Billion In 2019, In Our View. This Growth Will Likely Be Led By Stable Margins And Higher Revenues. The Jump In Adjusted Net Income Margin In 2018 Can Be Attributed To The Impact of Income Taxes.
3. Bristol-Myers Squibb’s Adjusted EPS Has Grown From $2.83 In 2016 To $3.98 In 2018, And It Is Estimated To Be $4.30 In 2019. The EPS Growth From 2018 Can Be Attributed To Higher Adjusted Net Income And Lower No. of Shares.
4. Our Price Estimate of $59 For Bristol-Myers Squibb’s Stock Based On Our Detailed Valuation Model Implies A 14x Earnings Multiple On Expected 2019 Adjusted Earnings of $4.30 Per Share.
Comparing Bristol-Myers Squibb’s Historical P/E With That of Its Peers.
- P/E Multiples Are Based On Price At The End of Q3, And Expected Forward Adjusted Earnings For The Full Year.
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