Bristol-Myers Squibb - Comparative Multiple Analysis

Bristol-Myers Squibb (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Bristol-Myers Squibb

WikiWealth compares Bristol-Myers Squibb's revenue, EBITDA, and EBIT multiples to their peers in order to determine the appropriate fair valuation. Click in the top right corner to experiment with Bristol-Myers Squibb's comparative analysis.

Notes from the analysis:

1. WikiWealth uses quantitative measures to determine the multiple range for Bristol-Myers Squibb.
2. Free cash flow to the firm (FCF) multiple is free cash flow to equity holders plus interest owed to Bristol-Myers Squibb's debt holders.
3. Multiples incorporate benefits due to economies of scale; WikiWealth compares absolute enterprise value multiples to competitor's multiples.
4. WikiWealth excludes outliers when calculating individual company multiples.

Helpful Information for Bristol-Myers Squibb's Analysis

How does this work? The Comparative Investment Analysis determines the value of Bristol-Myers Squibb by comparing Bristol-Myers Squibb financial ratios, prices, growth rates, margins, etc. to those of relevant peer groups.

Value Investing Importance? This method is widely used by investment professionals to determine the correct price of investments, especially initial public offerings (IPOs). It is one element of WikiWealth's three Wall Street approaches used to determine the correct fair value of Bristol-Myers Squibb.

See the Bristol-Myers Squibb cash flow (DCF) analysis for a completely different approach that's popular on Wall Street for determining the value of an investment in Bristol-Myers Squibb.

Also, see the Bristol-Myers Squibb's buffett intrinsic valuation analysis for WikiWealth's attempt to replicate the investing formula's used by Warren Buffett and Bristol-Myers Squibb's valuation conclusion for a quick summary.