On August 20, 2026, Bristol-Myers Squibb Co BMY shares fell 3.2% today, currently trading at $65.47. Over the past year, the stock has shown significant volatility, reaching a 52-week high of $68.64 and a low of $42.52.
- GF Valueâ„¢ verdict: Current price is $65.47, which is 15.9% above the GF Valueâ„¢ of $56.49.
- GF Scoreâ„¢: 71/100, indicating an above-average performance relative to peers.
- Most notable signal: Insiders sold $4.5M worth of shares over the past 12 months with no buying activity.
Is BMY Overvalued or Undervalued?
According to the GF Valueâ„¢, which is GuruFocus' proprietary estimate of intrinsic value based on historical trading multiples, past business growth, and future performance estimates, Bristol-Myers Squibb is currently considered overvalued. With a GF Valueâ„¢ of $56.49, the stock is trading at a 15.9% premium to its estimated fair value. This suggests that there may be limited margin for safety for potential investors, as the stock could face downward pressure if it fails to meet growth expectations or if market conditions change.
The GF Valuation label indicates that the stock is modestly overvalued. This could pose a risk for investors looking for a bargain, as overvalued stocks may experience corrections or underperform compared to their intrinsic value. Investors may need to consider whether the current price reflects Bristol-Myers Squibb's future growth potential and the sustainability of its dividend yield.
How Does BMY's Valuation Compare to Its History?
| Metric | Current | Historical |
|---|---|---|
| P/E (TTM) | 14.4x | 18.1x |
| Forward P/E | 9.5x | N/A |
Bristol-Myers Squibb's current P/E ratio of 14.4x is significantly below its 5-year median P/E of 18.1x, indicating that the stock is trading at a discount compared to its historical valuation. The forward P/E ratio of 9.5x also highlights a potentially attractive future earnings outlook. However, this P/E analysis aligns with the GF Valueâ„¢ verdict of being overvalued, as the current price does not seem to reflect the historical valuation trends adequately.
What Does BMY's GF Scoreâ„¢ Tell Us?
The GF Scoreâ„¢ evaluates a company's performance across multiple dimensions to help determine its overall investment potential. With a GF Scoreâ„¢ of 71/100, Bristol-Myers Squibb is rated above average, reflecting a solid operational performance. Its strongest area is in profitability, where it scores 8/10, indicating strong margins and return on investment. Conversely, its weakest area is in momentum, scoring only 3/10, which suggests that the stock may not have the same upward price trends as its peers.
| Metric | Rating |
|---|---|
| GF Scoreâ„¢ | 71 |
| Financial Strength | 5/10 |
| Profitability | 8/10 |
| Growth | 4/10 |
| Valuation | 6/10 |
| Momentum | 3/10 |
Analyzing these scores together indicates that while Bristol-Myers Squibb demonstrates strong profitability, its growth potential and momentum are weaker areas of concern. This mixed performance could affect investor sentiment, particularly in light of the stock's current valuation compared to the GF Valueâ„¢ estimate.
What Are Gurus and Insiders Doing with BMY?
Currently, 19 gurus hold shares of Bristol-Myers Squibb, with 7 adding to their positions and 13 trimming their holdings in recent quarters. This activity indicates a mixed sentiment among institutional investors, which could reflect a cautious outlook on the stock's future performance.
In terms of insider trading, the fact that insiders have sold $4.5 million worth of shares without any buying activity raises a flag regarding confidence in the company's near-term prospects. This selling behavior suggests that insiders may not view the current price as an attractive entry point, which could be a concern for prospective investors.
What This Means for Investors
Given that Bristol-Myers Squibb is currently overvalued according to its GF Valueâ„¢ estimate, investors may need to approach the stock with caution. The sustainability of its dividend, alongside the mixed signals from guru and insider activities, suggests that while there may be potential in the company's profitability, the valuation may not provide sufficient upside to justify the current price. For those looking for a deeper analysis, further information can be found on the Bristol-Myers Squibb Co BMY stock page and the GF Valueâ„¢ page.
Frequently Asked Questions
What is BMY's GF Scoreâ„¢?
BMY has a GF Scoreâ„¢ of 71/100, indicating above-average performance compared to its peers.
Is BMY overvalued or undervalued?
BMY is considered overvalued, with a current price that is 15.9% above its GF Valueâ„¢ of $56.49.
What is BMY's P/E ratio?
BMY's P/E ratio is 14.4x, which is significantly below its 5-year median of 18.1x, suggesting it is trading at a discount compared to its historical valuation.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
