Intrinsic value of Bristol-Myers Squibb - BMY

Previous Close

$67.95

  Intrinsic Value

$20.77

stock screener

  Rating & Target

str. sell

-69%

Previous close

$67.95

 
Intrinsic value

$20.77

 
Up/down potential

-69%

 
Rating

str. sell

We calculate the intrinsic value of BMY stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Shares outstanding, mln

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2016(a)
   2017
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  17.31
  6.70
  6.53
  6.38
  6.24
  6.12
  6.00
  5.90
  5.81
  5.73
  5.66
  5.59
  5.53
  5.48
  5.43
  5.39
  5.35
  5.32
  5.28
  5.26
  5.23
  5.21
  5.19
  5.17
  5.15
  5.14
  5.12
  5.11
  5.10
  5.09
  5.08
Revenue, $m
  19,427
  20,729
  22,082
  23,490
  24,956
  26,482
  28,072
  29,729
  31,458
  33,261
  35,143
  37,108
  39,162
  41,308
  43,551
  45,898
  48,354
  50,924
  53,615
  56,432
  59,383
  62,475
  65,715
  69,111
  72,671
  76,403
  80,316
  84,420
  88,725
  93,240
  97,976
Variable operating expenses, $m
 
  18,900
  20,089
  21,326
  22,614
  23,955
  25,352
  26,808
  28,326
  29,911
  31,564
  32,604
  34,408
  36,293
  38,265
  40,327
  42,484
  44,742
  47,106
  49,582
  52,175
  54,891
  57,738
  60,722
  63,849
  67,128
  70,567
  74,172
  77,954
  81,921
  86,083
Fixed operating expenses, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total operating expenses, $m
  13,480
  18,900
  20,089
  21,326
  22,614
  23,955
  25,352
  26,808
  28,326
  29,911
  31,564
  32,604
  34,408
  36,293
  38,265
  40,327
  42,484
  44,742
  47,106
  49,582
  52,175
  54,891
  57,738
  60,722
  63,849
  67,128
  70,567
  74,172
  77,954
  81,921
  86,083
Operating income, $m
  5,947
  1,829
  1,993
  2,164
  2,342
  2,527
  2,720
  2,921
  3,131
  3,350
  3,578
  4,505
  4,754
  5,014
  5,287
  5,572
  5,870
  6,182
  6,508
  6,850
  7,208
  7,584
  7,977
  8,389
  8,821
  9,274
  9,749
  10,248
  10,770
  11,318
  11,893
EBITDA, $m
  6,329
  2,733
  2,912
  3,097
  3,291
  3,492
  3,701
  3,920
  4,148
  4,386
  4,634
  4,893
  5,164
  5,447
  5,743
  6,052
  6,376
  6,715
  7,069
  7,441
  7,830
  8,238
  8,665
  9,113
  9,582
  10,074
  10,590
  11,131
  11,699
  12,294
  12,919
Interest expense (income), $m
  191
  200
  239
  280
  322
  366
  411
  458
  508
  559
  613
  669
  728
  789
  853
  920
  990
  1,063
  1,140
  1,220
  1,304
  1,392
  1,484
  1,581
  1,682
  1,789
  1,900
  2,017
  2,139
  2,267
  2,402
Earnings before tax, $m
  5,915
  1,629
  1,754
  1,884
  2,020
  2,162
  2,309
  2,463
  2,623
  2,791
  2,965
  3,835
  4,026
  4,225
  4,433
  4,651
  4,880
  5,118
  5,368
  5,630
  5,904
  6,192
  6,493
  6,808
  7,139
  7,486
  7,850
  8,231
  8,631
  9,051
  9,491
Tax expense, $m
  1,408
  440
  473
  509
  545
  584
  623
  665
  708
  753
  801
  1,036
  1,087
  1,141
  1,197
  1,256
  1,317
  1,382
  1,449
  1,520
  1,594
  1,672
  1,753
  1,838
  1,928
  2,021
  2,119
  2,222
  2,330
  2,444
  2,563
Net income, $m
  4,457
  1,189
  1,280
  1,375
  1,475
  1,578
  1,686
  1,798
  1,915
  2,037
  2,165
  2,800
  2,939
  3,084
  3,236
  3,396
  3,562
  3,736
  3,919
  4,110
  4,310
  4,520
  4,740
  4,970
  5,211
  5,465
  5,730
  6,009
  6,301
  6,607
  6,929

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  6,350
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  33,707
  29,195
  31,102
  33,085
  35,149
  37,299
  39,538
  41,872
  44,306
  46,846
  49,497
  52,265
  55,157
  58,180
  61,340
  64,646
  68,104
  71,724
  75,514
  79,482
  83,638
  87,993
  92,557
  97,339
  102,353
  107,609
  113,121
  118,902
  124,964
  131,324
  137,995
Adjusted assets (=assets-cash), $m
  27,357
  29,195
  31,102
  33,085
  35,149
  37,299
  39,538
  41,872
  44,306
  46,846
  49,497
  52,265
  55,157
  58,180
  61,340
  64,646
  68,104
  71,724
  75,514
  79,482
  83,638
  87,993
  92,557
  97,339
  102,353
  107,609
  113,121
  118,902
  124,964
  131,324
  137,995
Revenue / Adjusted assets
  0.710
  0.710
  0.710
  0.710
  0.710
  0.710
  0.710
  0.710
  0.710
  0.710
  0.710
  0.710
  0.710
  0.710
  0.710
  0.710
  0.710
  0.710
  0.710
  0.710
  0.710
  0.710
  0.710
  0.710
  0.710
  0.710
  0.710
  0.710
  0.710
  0.710
  0.710
Average production assets, $m
  6,098
  6,509
  6,934
  7,376
  7,836
  8,315
  8,815
  9,335
  9,878
  10,444
  11,035
  11,652
  12,297
  12,971
  13,675
  14,412
  15,183
  15,990
  16,835
  17,720
  18,646
  19,617
  20,635
  21,701
  22,819
  23,990
  25,219
  26,508
  27,860
  29,277
  30,765
Working capital, $m
  4,863
  -518
  -552
  -587
  -624
  -662
  -702
  -743
  -786
  -832
  -879
  -928
  -979
  -1,033
  -1,089
  -1,147
  -1,209
  -1,273
  -1,340
  -1,411
  -1,485
  -1,562
  -1,643
  -1,728
  -1,817
  -1,910
  -2,008
  -2,111
  -2,218
  -2,331
  -2,449
Total debt, $m
  6,708
  6,841
  7,995
  9,194
  10,443
  11,744
  13,099
  14,511
  15,983
  17,520
  19,124
  20,798
  22,548
  24,377
  26,289
  28,289
  30,381
  32,571
  34,864
  37,265
  39,779
  42,414
  45,175
  48,068
  51,102
  54,282
  57,616
  61,113
  64,781
  68,629
  72,665
Total liabilities, $m
  17,530
  17,663
  18,817
  20,016
  21,265
  22,566
  23,921
  25,333
  26,805
  28,342
  29,946
  31,620
  33,370
  35,199
  37,111
  39,111
  41,203
  43,393
  45,686
  48,087
  50,601
  53,236
  55,997
  58,890
  61,924
  65,104
  68,438
  71,935
  75,603
  79,451
  83,487
Total equity, $m
  16,177
  11,532
  12,285
  13,069
  13,884
  14,733
  15,618
  16,540
  17,501
  18,504
  19,551
  20,645
  21,787
  22,981
  24,229
  25,535
  26,901
  28,331
  29,828
  31,395
  33,037
  34,757
  36,560
  38,449
  40,429
  42,506
  44,683
  46,966
  49,361
  51,873
  54,508
Total liabilities and equity, $m
  33,707
  29,195
  31,102
  33,085
  35,149
  37,299
  39,539
  41,873
  44,306
  46,846
  49,497
  52,265
  55,157
  58,180
  61,340
  64,646
  68,104
  71,724
  75,514
  79,482
  83,638
  87,993
  92,557
  97,339
  102,353
  107,610
  113,121
  118,901
  124,964
  131,324
  137,995
Debt-to-equity ratio
  0.415
  0.590
  0.650
  0.700
  0.750
  0.800
  0.840
  0.880
  0.910
  0.950
  0.980
  1.010
  1.030
  1.060
  1.080
  1.110
  1.130
  1.150
  1.170
  1.190
  1.200
  1.220
  1.240
  1.250
  1.260
  1.280
  1.290
  1.300
  1.310
  1.320
  1.330
Adjusted equity ratio
  0.368
  0.395
  0.395
  0.395
  0.395
  0.395
  0.395
  0.395
  0.395
  0.395
  0.395
  0.395
  0.395
  0.395
  0.395
  0.395
  0.395
  0.395
  0.395
  0.395
  0.395
  0.395
  0.395
  0.395
  0.395
  0.395
  0.395
  0.395
  0.395
  0.395
  0.395

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  4,457
  1,189
  1,280
  1,375
  1,475
  1,578
  1,686
  1,798
  1,915
  2,037
  2,165
  2,800
  2,939
  3,084
  3,236
  3,396
  3,562
  3,736
  3,919
  4,110
  4,310
  4,520
  4,740
  4,970
  5,211
  5,465
  5,730
  6,009
  6,301
  6,607
  6,929
Depreciation, amort., depletion, $m
  382
  904
  919
  933
  949
  965
  981
  999
  1,017
  1,036
  1,055
  388
  410
  432
  456
  480
  506
  533
  561
  591
  622
  654
  688
  723
  761
  800
  841
  884
  929
  976
  1,025
Funds from operations, $m
  1,490
  2,093
  2,199
  2,309
  2,423
  2,543
  2,667
  2,797
  2,932
  3,073
  3,220
  3,188
  3,349
  3,517
  3,692
  3,876
  4,068
  4,269
  4,480
  4,701
  4,932
  5,174
  5,427
  5,693
  5,972
  6,264
  6,571
  6,892
  7,229
  7,583
  7,954
Change in working capital, $m
  -1,360
  -33
  -34
  -35
  -37
  -38
  -40
  -41
  -43
  -45
  -47
  -49
  -51
  -54
  -56
  -59
  -61
  -64
  -67
  -70
  -74
  -77
  -81
  -85
  -89
  -93
  -98
  -103
  -108
  -113
  -118
Cash from operations, $m
  2,850
  2,126
  2,233
  2,344
  2,460
  2,581
  2,707
  2,838
  2,975
  3,118
  3,267
  3,237
  3,400
  3,570
  3,748
  3,935
  4,130
  4,334
  4,547
  4,771
  5,005
  5,251
  5,508
  5,778
  6,061
  6,358
  6,669
  6,995
  7,337
  7,696
  8,073
Maintenance CAPEX, $m
  0
  -203
  -217
  -231
  -246
  -261
  -277
  -294
  -311
  -329
  -348
  -368
  -388
  -410
  -432
  -456
  -480
  -506
  -533
  -561
  -591
  -622
  -654
  -688
  -723
  -761
  -800
  -841
  -884
  -929
  -976
New CAPEX, $m
  -1,215
  -411
  -425
  -442
  -460
  -479
  -499
  -520
  -543
  -566
  -591
  -617
  -645
  -674
  -705
  -737
  -771
  -807
  -845
  -885
  -927
  -971
  -1,017
  -1,066
  -1,118
  -1,172
  -1,229
  -1,289
  -1,352
  -1,418
  -1,487
Cash from investing activities, $m
  1,480
  -614
  -642
  -673
  -706
  -740
  -776
  -814
  -854
  -895
  -939
  -985
  -1,033
  -1,084
  -1,137
  -1,193
  -1,251
  -1,313
  -1,378
  -1,446
  -1,518
  -1,593
  -1,671
  -1,754
  -1,841
  -1,933
  -2,029
  -2,130
  -2,236
  -2,347
  -2,463
Free cash flow, $m
  4,330
  1,512
  1,591
  1,671
  1,754
  1,840
  1,930
  2,024
  2,121
  2,222
  2,328
  2,252
  2,367
  2,487
  2,611
  2,742
  2,878
  3,021
  3,169
  3,325
  3,488
  3,659
  3,837
  4,024
  4,220
  4,425
  4,640
  4,866
  5,102
  5,350
  5,609
Issuance/(repayment) of debt, $m
  110
  1,125
  1,153
  1,200
  1,249
  1,300
  1,355
  1,412
  1,473
  1,536
  1,604
  1,675
  1,750
  1,829
  1,912
  2,000
  2,092
  2,190
  2,293
  2,401
  2,515
  2,635
  2,761
  2,894
  3,033
  3,180
  3,335
  3,497
  3,668
  3,847
  4,036
Issuance/(repurchase) of shares, $m
  -50
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  102
  1,125
  1,153
  1,200
  1,249
  1,300
  1,355
  1,412
  1,473
  1,536
  1,604
  1,675
  1,750
  1,829
  1,912
  2,000
  2,092
  2,190
  2,293
  2,401
  2,515
  2,635
  2,761
  2,894
  3,033
  3,180
  3,335
  3,497
  3,668
  3,847
  4,036
Total cash flow (excl. dividends), $m
  4,399
  2,637
  2,744
  2,871
  3,003
  3,141
  3,285
  3,436
  3,594
  3,759
  3,932
  3,927
  4,117
  4,315
  4,523
  4,742
  4,971
  5,210
  5,462
  5,726
  6,003
  6,293
  6,598
  6,918
  7,253
  7,605
  7,975
  8,363
  8,770
  9,197
  9,645
Retained Cash Flow (-), $m
  -1,911
  -713
  -753
  -783
  -815
  -849
  -885
  -922
  -961
  -1,003
  -1,047
  -1,093
  -1,142
  -1,194
  -1,248
  -1,306
  -1,366
  -1,430
  -1,497
  -1,568
  -1,642
  -1,720
  -1,803
  -1,889
  -1,980
  -2,076
  -2,177
  -2,283
  -2,395
  -2,512
  -2,635
Prev. year cash balance distribution, $m
 
  5,358
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  7,282
  1,991
  2,087
  2,187
  2,292
  2,401
  2,514
  2,632
  2,756
  2,885
  2,834
  2,974
  3,121
  3,275
  3,436
  3,604
  3,781
  3,965
  4,158
  4,361
  4,573
  4,795
  5,029
  5,273
  5,529
  5,798
  6,079
  6,375
  6,685
  7,010
Discount rate, %
 
  4.30
  4.52
  4.74
  4.98
  5.23
  5.49
  5.76
  6.05
  6.35
  6.67
  7.00
  7.35
  7.72
  8.11
  8.51
  8.94
  9.39
  9.86
  10.35
  10.87
  11.41
  11.98
  12.58
  13.21
  13.87
  14.56
  15.29
  16.05
  16.86
  17.70
PV of cash for distribution, $m
 
  6,982
  1,823
  1,816
  1,801
  1,776
  1,742
  1,698
  1,645
  1,583
  1,512
  1,346
  1,269
  1,187
  1,100
  1,009
  916
  823
  730
  640
  554
  473
  398
  330
  269
  215
  169
  130
  99
  73
  53
Current shareholders' claim on cash, %
  100
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0

Bristol-Myers Squibb Company is engaged in the discovery, development, licensing, manufacturing, marketing, distribution and sale of biopharmaceutical products. The Company's pharmaceutical products include chemically synthesized drugs, or small molecules, and products produced from biological processes called biologics. Small molecule drugs are administered orally in the form of a pill or tablet. Biologics are administered to patients through injections or by infusion. The Company's products include Empliciti, Opdivo, Sprycel, Yervoy, Eliquis, Orencia, Baraclude, Hepatitis C Franchise, Reyataz Franchise and Sustiva Franchise. It offers products for a range of therapeutic classes, which include virology, including human immunodeficiency virus (HIV) infection; oncology; immunoscience, and cardiovascular. Its products are sold to wholesalers, retail pharmacies, hospitals, government entities and the medical profession across the world.

FINANCIAL RATIOS  of  Bristol-Myers Squibb (BMY)

Valuation Ratios
P/E Ratio 25.4
Price to Sales 5.8
Price to Book 7
Price to Tangible Book
Price to Cash Flow 39.7
Price to Free Cash Flow 69.2
Growth Rates
Sales Growth Rate 17.3%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 48.2%
Cap. Spend. - 3 Yr. Gr. Rate 17.7%
Financial Strength
Quick Ratio 6
Current Ratio 0
LT Debt to Equity 35.3%
Total Debt to Equity 41.5%
Interest Coverage 32
Management Effectiveness
Return On Assets 14.1%
Ret/ On Assets - 3 Yr. Avg. 8.5%
Return On Total Capital 20.3%
Ret/ On T. Cap. - 3 Yr. Avg. 12.1%
Return On Equity 29.3%
Return On Equity - 3 Yr. Avg. 17.8%
Asset Turnover 0.6
Profitability Ratios
Gross Margin 74.6%
Gross Margin - 3 Yr. Avg. 75.9%
EBITDA Margin 33.4%
EBITDA Margin - 3 Yr. Avg. 23%
Operating Margin 30.6%
Oper. Margin - 3 Yr. Avg. 18.1%
Pre-Tax Margin 30.4%
Pre-Tax Margin - 3 Yr. Avg. 19.3%
Net Profit Margin 22.9%
Net Profit Margin - 3 Yr. Avg. 15%
Effective Tax Rate 23.8%
Eff/ Tax Rate - 3 Yr. Avg. 20%
Payout Ratio 57.1%

BMY stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the BMY stock intrinsic value calculation we used $19427 million for the last fiscal year's total revenue generated by Bristol-Myers Squibb. The default revenue input number comes from 2016 income statement of Bristol-Myers Squibb. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our BMY stock valuation model: a) initial revenue growth rate of 6.7% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 4.3%, whose default value for BMY is calculated based on our internal credit rating of Bristol-Myers Squibb, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Bristol-Myers Squibb.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of BMY stock the variable cost ratio is equal to 91.4%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for BMY stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 3.5% for Bristol-Myers Squibb.

Corporate tax rate of 27% is the nominal tax rate for Bristol-Myers Squibb. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the BMY stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for BMY are equal to 31.4%.

Life of production assets of 34 years is the average useful life of capital assets used in Bristol-Myers Squibb operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for BMY is equal to -2.5%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $16177 million for Bristol-Myers Squibb - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 1649.8 million for Bristol-Myers Squibb is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Bristol-Myers Squibb at the current share price and the inputted number of shares is $112.1 billion.

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COMPANY NEWS

▶ 3 Top Dividend Stocks With Yields Over 2%   [07:17AM  Motley Fool]
▶ Bristol-Myers 'Is Back' and Could Soar Another 14%   [Feb-15-18 08:04PM  TheStreet.com]
▶ Wall Street Is in the Green   [03:40PM  GuruFocus.com]
▶ Stocks Try To Extend Win Streak As Dow Tests This Key Level   [01:26PM  Investor's Business Daily]
▶ Bristol Continues 2-Day Plunge Amid Debate On Merck-Rivaling Combo   [Feb-06-18 04:18PM  Investor's Business Daily]
▶ More Questions Than Answers For Bristol-Myers   [Feb-05-18 06:07PM  Forbes]
▶ Bristol-Myers reports 4Q loss   [07:21AM  Associated Press]
▶ Biotech stocks hold up amid market sell-off   [Feb-02-18 04:30PM  CNBC Videos]
▶ Dow's Merck Lags On Sales, But Earnings, 2018 Outlook Top   [04:19PM  Investor's Business Daily]
▶ Pfizer: Analysts Ratings and Recommendations for 4Q17   [Jan-26-18 10:32AM  Market Realist]
▶ A Look at Nektar Therapeutics Financial Performance   [Jan-24-18 09:01AM  Market Realist]
▶ How Is Novartiss Kymriah Positioned for 2018?   [Jan-23-18 03:39PM  Market Realist]
▶ Whom Will Pfizer Buy in 2018?   [08:17AM  Motley Fool]
Financial statements of BMY
Valuation of Stocks

The paper VALUATION OF STOCKS: The Quest for Intrinsic Value provides a detailed description of our valuation model and discloses the calculation algorithm.

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