DCF Tool

BMY

Bristol-Myers Squibb Co. – Pharmaceutical Preparation Manufacturing
The Bristol-Myers Squibb Company is an American multinational pharmaceutical company. Headquartered in New York City, BMS is one of the worlds largest pharmaceutical companies and consistently ranks on the Fortune 500 list of the largest U.S. corporations. For fiscal 2022, it had a total revenue of $46.2 billion.
Analysis Results
Intrinsic Value $755.19
Latest Price $50.92
Relative Value 93% undervalued
Thoughts on this result? Let us know.
Ad
Cash Flow (Billions)
Analysis Parameters
%
%
%
New Ticker
Ad
Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 27.5%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 5.4%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 27.5%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2024 23.5 22.3
2025 30.0 27.0
2026 38.2 32.6
2027 48.7 39.5
2028 62.1 47.7
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 1860 billion. This corresponds to a present value of 1360 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 169 billion. Adding in the terminal value gives a total present value of 1530 billion.

There are presently 2.02 billion outstanding shares, so the intrinsic value per share is 755.19.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 31,770,000,000
Current Cash 12,280,000,000
Current Liabilities 22,262,000,000
Current Debt 3,119,000,000
Non-Cash Working Capital (NCWC) 347,000,000
Change in NCWC -47,000,000
EBIT 8,195,000,000
Tax Provision 400,000,000
Depreciation and Amortization 9,760,000,000
Capital Expenditure -1,209,000,000
Unlevered Free Cash Flow 16,310,611,374
Current Assets 27,273,000,000
Current Cash 9,253,000,000
Current Liabilities 21,890,000,000
Current Debt 4,264,000,000
Non-Cash Working Capital (NCWC) 394,000,000
Change in NCWC 1,273,000,000
EBIT 9,104,000,000
Tax Provision 1,368,000,000
Depreciation and Amortization 10,276,000,000
Capital Expenditure -1,118,000,000
Unlevered Free Cash Flow 17,920,288,214
Current Assets 33,262,000,000
Current Cash 17,221,000,000
Current Liabilities 21,868,000,000
Current Debt 4,948,000,000
Non-Cash Working Capital (NCWC) -879,000,000
Change in NCWC 2,119,000,000
EBIT 7,378,000,000
Tax Provision 1,084,000,000
Depreciation and Amortization 10,686,000,000
Capital Expenditure -973,000,000
Unlevered Free Cash Flow 18,222,379,352
Current Assets 30,192,000,000
Current Cash 16,450,000,000
Current Liabilities 19,080,000,000
Current Debt 2,340,000,000
Non-Cash Working Capital (NCWC) -2,998,000,000
Change in NCWC -2,001,000,000
EBIT 2,177,000,000
Tax Provision 2,124,000,000
Depreciation and Amortization 10,380,000,000
Capital Expenditure -753,000,000
Unlevered Free Cash Flow 9,803,000,000
Current Assets 29,354,000,000
Current Cash 15,393,000,000
Current Liabilities 18,304,000,000
Current Debt 3,346,000,000
Non-Cash Working Capital (NCWC) -997,000,000
Change in NCWC -322,000,000
EBIT 5,909,000,000
Tax Provision 1,515,000,000
Depreciation and Amortization 1,746,000,000
Capital Expenditure -836,000,000
Unlevered Free Cash Flow 4,697,575,879
Current Assets 17,160,000,000
Current Cash 8,884,000,000
Current Liabilities 10,654,000,000
Current Debt 1,703,000,000
Non-Cash Working Capital (NCWC) -675,000,000
Change in NCWC -141,000,000
EBIT 5,211,000,000
Tax Provision 1,021,000,000
Depreciation and Amortization 637,000,000
Capital Expenditure -951,000,000
Unlevered Free Cash Flow 3,864,506,869
Current Assets 14,854,000,000
Current Cash 6,812,000,000
Current Liabilities 9,563,000,000
Current Debt 987,000,000
Non-Cash Working Capital (NCWC) -534,000,000
Change in NCWC -39,000,000
EBIT 3,687,000,000
Tax Provision 4,156,000,000
Depreciation and Amortization 789,000,000
Capital Expenditure -1,055,000,000
Unlevered Free Cash Flow 395,609,043
Current Assets 13,704,000,000
Current Cash 6,350,000,000
Current Liabilities 8,841,000,000
Current Debt 992,000,000
Non-Cash Working Capital (NCWC) -495,000,000
Change in NCWC 1,238,000,000
EBIT 4,707,000,000
Tax Provision 1,408,000,000
Depreciation and Amortization 382,000,000
Capital Expenditure -1,215,000,000
Unlevered Free Cash Flow 3,991,550,972
Current Assets 10,415,000,000
Current Cash 4,270,000,000
Current Liabilities 8,017,000,000
Current Debt 139,000,000
Non-Cash Working Capital (NCWC) -1,733,000,000
Change in NCWC -1,035,000,000
EBIT 1,973,000,000
Tax Provision 446,000,000
Depreciation and Amortization 376,000,000
Capital Expenditure -820,000,000
Unlevered Free Cash Flow 70,332,209
Current Assets 14,608,000,000
Current Cash 7,435,000,000
Current Liabilities 8,461,000,000
Current Debt 590,000,000
Non-Cash Working Capital (NCWC) -698,000,000
Change in NCWC -3,008,000,000
EBIT 2,698,000,000
Tax Provision 352,000,000
Depreciation and Amortization 467,000,000
Capital Expenditure -526,000,000
Unlevered Free Cash Flow -767,864,342
Current Assets 18,916,000,000
Current Cash 4,525,000,000
Current Liabilities 12,440,000,000
Current Debt 359,000,000
Non-Cash Working Capital (NCWC) 2,310,000,000
Change in NCWC 3,071,000,000
EBIT 3,262,000,000
Tax Provision 311,000,000
Depreciation and Amortization 763,000,000
Capital Expenditure -537,000,000
Unlevered Free Cash Flow 6,208,089,588
Current Assets 9,521,000,000
Current Cash 2,829,000,000
Current Liabilities 8,279,000,000
Current Debt 826,000,000
Non-Cash Working Capital (NCWC) -761,000,000
Change in NCWC 319,000,000
EBIT 4,273,000,000
Tax Provision -161,000,000
Depreciation and Amortization 681,000,000
Capital Expenditure -548,000,000
Unlevered Free Cash Flow 4,725,000,000

This analysis is provided for informational purposes only and does not constitute financial or investing advice. For more information on the advantages and limitations of DCF analysis see background. This information is provided on an "as is" basis. No warranty, expressed or implied, is made regarding accuracy, adequacy, completeness, legality, reliability or usefulness of any information. By using this site you agree that under no circumstances shall Valuation Tools LLC be held liable for any loss or damage caused by information obtained from this website including any articles, data, videos, its social media accounts, or any other materials.