Bristol-Myers Squibb Company
AI Valuation
AI-generated fair value estimate for this company.
AI Fair Value
$86.00
Market Price
$59.59
Undervalued By
30.7%
Method: 10-year unlevered FCF DCF: $12.8B FY2025 free cash flow base (operating cash flow of $14.2B less about $1.3B capex); 1% FCF growth years 1-5 reflecting the Eliquis/Opdivo patent cliff; 3.5% years 6-10 as Cobenfy, Camzyos, Breyanzi, Opdualag and Augtyro ramp; 8.5% discount rate; 2.5% terminal growth; less about $36.3B net debt; 2.04B shares outstanding.
Reasoning: BMY generates large durable cash flow but faces a well-flagged 2027-2030 patent cliff on its top products, so a two-stage DCF with subdued near-term growth followed by pipeline-driven reacceleration captures the trajectory better than flat extrapolation of a single year.