An independent two-stage DCF analysis by a frontier AI model.
" data-astro-cid-b6x2a37w> BMY's free cash flow declined by 7.9% in FY2025 but remained massive at $12.8B. The company faces significant patent cliffs (Revlimid, Eliquis, Opdivo) this decade. However, management's aggressive acquisition strategy and new product portfolio (Reblozyl, Camzyos, Sotyktu) are designed to offset these losses. A 2% growth rate reflects a "treading water with slight expansion" scenario as new drugs replace old blockbusters.
" data-astro-cid-b6x2a37w> Pharmaceuticals are generally defensive, with cash flows less tied to the economic cycle. With the 10-year Treasury at 4.18%, an 8% discount rate implies an equity risk premium of ~3.8%. This is appropriate for a highly cash-generative company with moderate growth prospects and a low beta.
" data-astro-cid-b6x2a37w> BMY's free cash flow declined by 7.9% in FY2025 but remained massive at $12.8B. The company faces significant patent cliffs (Revlimid, Eliquis, Opdivo) this decade. However, management's aggressive acquisition strategy and new product portfolio (Reblozyl, Camzyos, Sotyktu) are designed to offset these losses. A 2% growth rate reflects a "treading water with slight expansion" scenario as new drugs replace old blockbusters.
Intrinsic value per share under varying discount rate and terminal growth rate assumptions.
| WACC ↓ / Terminal → | 7.0% | 7.5% | 8.0% | 8.5% | 9.0% |
|---|---|---|---|---|---|
| 7.0% | $48.20 | $48.20 | $48.20 | $48.20 | $48.20 |
| 7.5% | $48.20 | $48.20 | $48.20 | $48.20 | $48.20 |
| 8.0% | $48.20 | $48.20 | $48.20 | $48.20 | $48.20 |
| 8.5% | $48.20 | $48.20 | $48.20 | $48.20 | $48.20 |
| 9.0% | $48.20 | $48.20 | $48.20 | $48.20 | $48.20 |
■ Undervalued vs current price ■ Overvalued vs current price
Westmount Research. "Bristol-Myers Squibb (BMY) Intrinsic Value: A DCF Analysis." westmountfundamentals.com, March 18, 2026.
Disclaimer: The numbers presented on this page are for educational and entertainment purposes only. They are the result of a deterministic mathematical model fed with assumptions generated by an Artificial Intelligence (Gemini 3.1). This does not constitute investment advice. Always conduct your own due diligence before investing in the stock market.