Bristol-Myers Squibb Company (BMY) Stock Analysis — Price Target, Hold Rating & DCF Valuation (2026)
BMY screens as quality-oriented and attractively valued — DCF model implies a +66% margin of safety at current levels.
BMY's quantitative grade is Hold, with limited downside risk (CVaR -7.1%), and quality metrics (net margin 15%, ROE 39%). Bristol-Myers Squibb Company (BMY) trades at $56.09 with a valuation grade of Hold: a trailing P/E of 15.7x at a 29% discount to sector median, net margins of 15.0%, a DCF-implied intrinsic range of $63–$123 suggesting a +66% margin of safety, beta 0.26 (defensive risk profile).
DCF Valuation Range
Key Takeaways
- Valuation: Hold grade — P/E 15.7x — DCF range $63–$123 implies +66% margin of safety
- Risk: CVaR -7.1% (95th percentile, 1-month) indicates moderate tail exposure; beta of 0.26 amplifies broad market moves in both directions
- Strengths: Quality 4.0/5, Size 4.0/5, 15% net margin, 39% ROE dominate the factor profile
- Watch: Monitor earnings delivery — premium multiples leave limited margin for misses
Quantitative Factor Profile
Key Metrics
| Metric | Value |
|---|---|
| Current Price | $56.09 |
| P/E Ratio (TTM) | 15.7x |
| Forward P/E | 9.1x |
| P/S Ratio | 2.4 |
| EV/EBITDA | 8.0 |
| Beta | 0.26 |
| Net Margin | 15.0% |
| ROE | 38.7% |
| Debt/Equity | 231.0% |
| Dividend Yield | 4.48% |
| CVaR (95%, 1M) | -7.1% |
| Market Cap | $114.5B |
BMY screens as a high-quality business, at an attractive entry point relative to intrinsic value. The four-quarter earnings beat streak is constructive.
BMY trades at 15.7x trailing earnings — 29% below the Healthcare sector median of 22.0x. The DCF model implies a +66% margin of safety — the risk/reward is currently skewed to the upside.
Hold means what it says here — I am not selling, but I am not buying either. The risk/reward at current prices is roughly balanced, and roughly balanced is not enough reason to deploy fresh capital. What I watch on this name is earnings consistency — specifically whether delivery against consensus is stable or deteriorating. That is usually where the rating gets confirmed or challenged before the price reflects it. A pullback of 10–15% from here would open the margin of safety enough that I would want to add. An earnings miss at the current multiple would do the opposite — that would be the signal to reduce rather than wait.
Earnings History
| Quarter | EPS Est. | EPS Actual | Surprise |
|---|---|---|---|
| Q1 2026 | $1.42 | $1.58 | +11.2% ✓ |
| Q4 2025 | $1.20 | $1.26 | +4.6% ✓ |
| Q3 2025 | $1.52 | $1.63 | +7.5% ✓ |
| Q2 2025 | $1.10 | $1.46 | +32.6% ✓ |
Quarterly EPS — Estimate vs Actual
Earnings Projections
| Quarter | EPS Est. | YoY EPS | Analysts |
|---|---|---|---|
| Q2 2026 | $1.63 | +11.9% | 25 |
| Q3 2026 | $1.45 | -10.8% | 25 |
| Q4 2026 | $1.53 | +21.8% | 25 |
| Q1 2027 | $1.52 | -3.6% | 25 |
Earnings Projections — Consensus EPS Estimates
BMY vs. Sector Peers
| Ticker | P/E (TTM) | Fwd P/E | Beta | CVaR-95 | Net Margin |
|---|---|---|---|---|---|
| BMY | 15.7x | 9.1x | 0.26 | -7.1% | 15.0% |
| LLY | 34.2x | 21.9x | 0.48 | -17.8% | 35.0% |
| PFE | 19.7x | 9.1x | 0.30 | -7.9% | 11.8% |
| JNJ | 25.7x | 17.4x | 0.26 | -6.7% | 21.8% |
| ABBV | 97.9x | 12.4x | 0.30 | -10.3% | 5.8% |
DCF Scenario Analysis
Hover each scenario for detail · current price $56.09Pairwise Correlation Matrix
Extended Analysis — Buy, Hold or Sell? Risk Factors. Portfolio Fit.
Is BMY a buy, hold, or sell?
BMY carries a valuation grade of Hold. At a trailing P/E of 15.7, the stock trades at a 29% discount to the Healthcare sector median of 22.0x. Our discounted cash flow model produces an intrinsic range of $63–$123 — implying a +66% margin of safety at the current price of $56.09. The width of the DCF range reflects genuine uncertainty in the terminal growth rate assumption: the correct framework is a probability-weighted distribution over scenarios, not a single point estimate. See the DCF valuation framework for full methodology.
BMY has beaten consensus estimates in 100% of recent quarters, signalling strong execution consistency. The most recent quarter delivered a 11.2% earnings surprise. Analyst estimate revisions are trending upward.
What are BMY's key risk factors?
With a beta of 0.26, BMY exhibits a low-volatility risk profile relative to the broad market. The 95th-percentile CVaR of -7.1% on a one-month horizon should inform position sizing directly: at a 10% portfolio weight, this tail event contributes approximately 0.7% of total portfolio loss in the worst 5% of months. Net margins stand at 15.0%. Return on equity of 38.7% indicates highly efficient capital allocation. Debt-to-equity of 231% warrants monitoring for leverage risk.
At 0.56, the put/call ratio skews bullish, with call buyers dominating recent flow. Implied volatility of 51.8% exceeds realized volatility of 28.3% by 24 points, suggesting options are pricing in elevated risk. Insiders have been net sellers to the tune of $4.0M recently. While routine dispositions are common, the magnitude bears watching. Short interest is low at 1.6% of float, suggesting limited bearish conviction.
How does BMY fit in a diversified portfolio?
At typical HENRY portfolio weights — 10–20% of the equity allocation — BMY carries a beta of 0.26, meaning it amplifies broad market moves proportionally. The appropriate weight is not a function of conviction alone, but of the full covariance structure across all holdings. See the Ledoit-Wolf covariance framework for the methodology behind these calculations.
Among closely correlated names, BMY shows the strongest co-movement with PFE (0.63), ABBV (0.54), JNJ (0.46). Investors seeking diversification should note these correlation dynamics when constructing multi-asset portfolios.
True portfolio risk is a function of the full covariance structure across all holdings — not individual stock metrics. The Portfolio Health Check quantifies this at the portfolio level: it surfaces hidden concentration, marginal CVaR contributions, and the degree to which your overall allocation deviates from an optimal risk-adjusted mandate. The BMY analysis here is a single node in that larger structure.
Investor FAQ
Is BMY a buy or sell in 2026?
Bristol-Myers Squibb Company (BMY) carries a Hold quantitative rating from A.L. Capital Advisory, derived from Discounted Cash Flow intrinsic value analysis, five-factor model scoring (Value, Quality, Momentum, Volatility, Size), and CVaR tail risk measurement. At $56.09, the DCF midpoint margin of safety is +66% (intrinsic value range: $63 bear – $123 bull). Composite factor score: 4.0/5. Strongest factor: Volatility (5.0/5). Weakest factor: Momentum (3.0/5). Trailing P/E: 15.7x. Rating by Anton Ladnyi, CFA Charterholder (ex-Goldman Sachs Equity Research, ex-J.P. Morgan Wealth Management), A.L. Capital Advisory, Berlin. Full methodology: Portfolio Construction Framework →
What is the average analyst target price for BMY?
Wall Street consensus target for BMY: $63.32 (+12.9% upside from the current price of $56.09). The analyst target range spans $40.00 (most bearish) to $75.00 (most bullish). Consensus recommendation: Hold. Note that analyst price targets typically reflect a 12-month forward horizon and are derived from a blend of DCF, comparable-company, and sum-of-the-parts analysis. A.L. Capital Advisory’s quantitative Hold rating is produced independently — from DCF intrinsic value, five-factor model scores, and CVaR tail risk — and does not mechanically track Street consensus. When the two diverge, the divergence itself is informative: it can reflect differences in time horizon, valuation methodology, or the degree to which the current price already discounts the consensus case. Analysis by Anton Ladnyi, CFA (ex-Goldman Sachs, ex-J.P. Morgan) · A.L. Capital Advisory. Full methodology: Monte Carlo Simulation Framework →
How does BMY score on Value, Quality, Momentum, Volatility, and Size?
BMY five-factor scores (A.L. Capital Advisory, 1–5 scale): Value 4.0/5 (above average) — measures current price versus DCF intrinsic range and trailing earnings multiples; Quality 4.0/5 (above average) — captures profitability metrics including return on equity, net margin (ROE: 38.7%) and net margin (15.0%); Momentum 3.0/5 (neutral) — reflects recent price trajectory and earnings surprise consistency; Volatility 5.0/5 (strong) — inverse measure derived from beta, where lower historical volatility earns a higher score; Size 4.0/5 (above average) — market capitalisation rank (mega-cap $1T+ scores 5/5). Composite: 4.0/5. Factor scores above 4.0 signal a tailwind in that dimension; below 2.0 signals a material headwind. Analysis by Anton Ladnyi, CFA (ex-Goldman Sachs, ex-J.P. Morgan) · A.L. Capital Advisory. Full methodology: Black-Litterman Model →
What is BMY's tail risk and CVaR?
The 95th-percentile Conditional Value at Risk (CVaR) for BMY on a one-month horizon is -7.1%. CVaR represents the expected average loss in the worst 5% of monthly outcomes — a more conservative tail risk measure than standard VaR, which only marks the loss threshold. Beta of 0.26 indicates below-market volatility. For reference, a diversified S&P 500 ETF carries a one-month CVaR of roughly -8% to -12% in normal market conditions; individual equity CVaR is higher due to idiosyncratic risk. At the portfolio level, what matters is the marginal CVaR contribution of each holding — not its standalone figure. The A.L. Capital Advisory Portfolio Health Check quantifies each position's marginal tail-risk contribution across your entire holdings. Analysis by Anton Ladnyi, CFA (ex-Goldman Sachs, ex-J.P. Morgan) · A.L. Capital Advisory. Full methodology: CVaR & Tail-Risk Methodology →
What is BMY's intrinsic value and DCF price target?
A.L. Capital Advisory's DCF model produces an intrinsic value range of $63 (bear case) to $123 (bull case) for Bristol-Myers Squibb Company (BMY). At $56.09, the midpoint margin of safety is +66% (positive = discount to intrinsic mid; negative = premium). The bear-to-bull spread reflects genuine sensitivity to the two dominant DCF inputs: the terminal growth rate and WACC. Terminal value typically accounts for 60-80% of total intrinsic value in most equity DCF models, which is why a range is more analytically sound than a point estimate. The central analytical question is not what the DCF outputs as a single number but which growth trajectory the current market price already discounts. All DCF analysis follows CFA Institute standards and is conducted by Analysis by Anton Ladnyi, CFA (ex-Goldman Sachs, ex-J.P. Morgan) · A.L. Capital Advisory. Full methodology: DCF Valuation Framework →
What would trigger a rating upgrade or downgrade for BMY?
Upgrade trigger: A price pullback that opens the margin of safety beyond +15% (approximately $54 based on the DCF bear case). Downgrade trigger: a sustained reversal in the Quality and Momentum factor scores for two or more consecutive quarters. Analysis by Anton Ladnyi, CFA (ex-Goldman Sachs, ex-J.P. Morgan) · A.L. Capital Advisory. Full methodology: Investment Policy Statement Framework →
Does BMY consistently beat earnings estimates?
BMY has beaten consensus EPS estimates in 100% of tracked quarterly periods — indicating consistent delivery. The most recent reported quarter beat consensus by 11.2%. Sustained above-consensus delivery supports both the Momentum and Quality factor scores and provides a tailwind to the current rating. Earnings surprise magnitude and direction are incorporated into the Momentum and Quality dimensions of the five-factor scoring model. Analysis by Anton Ladnyi, CFA (ex-Goldman Sachs, ex-J.P. Morgan) · A.L. Capital Advisory. Full methodology: DCF Valuation Framework →
How does BMY contribute to portfolio risk and diversification?
BMY carries a beta of 0.26 (low-volatility / defensive relative to the broad equity market). A beta above 1.0 means the position amplifies market moves in both directions at a typical portfolio weight. Strongest peer co-movement: PFE (0.63), ABBV (0.54), JNJ (0.46). Holding BMY alongside these names in the same portfolio increases concentration risk. True portfolio risk is a function of the full covariance structure — a single stock's beta does not reveal its marginal contribution to portfolio tail loss. The A.L. Capital Advisory Portfolio Health Check quantifies concentration risk (Herfindahl-Hirschman Index), pairwise correlations, and marginal CVaR contribution across all your holdings. Analysis by Anton Ladnyi, CFA (ex-Goldman Sachs, ex-J.P. Morgan) · A.L. Capital Advisory. Full methodology: Ledoit-Wolf Covariance Framework →
What quantitative methodology does A.L. Capital Advisory use to analyse BMY?
A.L. Capital Advisory analyses Bristol-Myers Squibb Company (BMY) using a four-component quantitative framework grounded in CFA Institute standards. (1) DCF Valuation: projects free cash flows under bear and bull assumptions, discounts at WACC to produce an intrinsic value range with margin-of-safety calculation. (2) Five-Factor Scoring: each equity is scored 1–5 on Value, Quality, Momentum, Volatility, and Size. (3) CVaR Tail Risk: 95th-percentile Conditional Value at Risk from historical simulation of daily returns on a one-month horizon. (4) Earnings Surprise Analysis: quarterly beat rate and magnitude are incorporated into the Momentum and Quality factor scores. The current Hold rating for BMY is the output of applying this complete framework to current data. All analysis is conducted personally by Anton Ladnyi, CFA Charterholder (ex-Goldman Sachs Equity Research, ex-J.P. Morgan Wealth Management), founder of A.L. Capital Advisory, Berlin. CFA Charter: https://credentials.cfainstitute.org/5ff4f4bf-f1e6-4ca7-9ab2-aaed50ec2e43 Full methodology: DCF Valuation Framework → · CVaR & Tail-Risk Methodology →
Run BMY in Asset Lens
Live DCF valuation, Monte Carlo simulation, options flow intelligence, and full factor decomposition — updated in real time. Free, no account required.
Launch Live Analysis →
This analysis is produced using a systematic quantitative framework applied to market data and does not constitute investment advice. Prose commentary is AI-assisted and generated from structured quantitative inputs. All data and metrics are as of 2026-05-08 and are point-in-time estimates subject to revision without notice. CVaR figures are based on historical simulation and do not guarantee future outcomes. DCF ranges and upgrade/downgrade triggers are forward-looking statements based on current assumptions and may not materialise. Past performance does not guarantee future results. This analysis does not account for individual circumstances, tax position, or investment objectives — consult a qualified financial advisor before making investment decisions. This content is intended for informational purposes only and does not constitute regulated investment advice under MiFID II or FCA guidelines. This content is not intended for US persons or residents of jurisdictions where its distribution would be contrary to local law or regulation. This service is not directed at residents of Finland, Sweden, Norway, Denmark, Iceland, or Poland. The author may hold long or short positions in securities mentioned in this analysis. Nothing on this page represents a solicitation to buy or sell any security. A.L. Capital Advisory is an independent private advisory practice and is not affiliated with Bristol-Myers Squibb Company.
