Bristol-Myers Squibb Co (BMY) Stock: How Does it Score on Valuation Metrics?

Bristol-Myers Squibb Co (BMY) receives a strong valuation ranking of 74 from InvestorsObserver data analysis. The proprietary ranking system focuses on the underlying health of a company through analysis of its stock price, earnings, and growth rate. BMY has a better value than 74% of stocks based on these valuation analytics. Investors primarily focused on buy-and-hold strategies will find the valuation ranking relevant to their goals when making investment decisions.

BMY gets a 74 Valuation Rank today. Find out what this means to you and get the rest of the rankings on BMY!

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Metrics Analysis

BMY has a trailing twelve month Price to Earnings (PE) ratio of 22.7. The historical average of roughly 15 shows a poor value for BMY stock as investors are paying higher share prices relative to the company's earnings. BMY's high trailing PE ratio shows that the firm has been trading above its fair market value recently. Its trailing 12-month earnings per share (EPS) of 2.95 does not justify the stock's current price. However, trailing PE ratios do not factor in the company's projected growth rate, resulting in many newer firms having high PE ratios due to high growth potential enticing investors despite inadequate earnings. BMY has a 12 month forward PE to Growth (PEG) ratio of 1.47. Markets are overvaluing BMY in relation to its projected growth as its PEG ratio is currently above the fair market value of 1. 2.95's PEG comes from its forward price to earnings ratio being divided by its growth rate. PEG ratios are one of the most used valuation metrics due to its incorporation of more company fundamentals metrics and a focus on the firm's future rather than its past.

Summary

All together these valuation metrics paint a pretty poor picture for BMY at its current price due to a overvalued PEG ratio despite strong growth. The PE and PEG for BMY are worse than the average of the market resulting in a valuation score of 74. Click Here to get the full Report on Bristol-Myers Squibb Co (BMY) stock.