Is Bristol Myers Squibb Co. overvalued or undervalued?

As of 31 July 2025, the valuation grade for Bristol Myers Squibb Co. has moved from attractive to very attractive, indicating a positive shift in its perceived value. The company appears to be undervalued, particularly when considering its P/E ratio of 15, which is significantly lower than the industry average, and its EV to EBITDA ratio of 9.01, which also suggests a favorable valuation relative to earnings before interest, taxes, depreciation, and amortization. Additionally, the company boasts a high ROE of 49.65%, reflecting strong profitability.
In comparison to its peers, Bristol Myers Squibb Co. has a P/E ratio of 14.33, which is lower than Eli Lilly & Co. at 40.89 and Johnson & Johnson at 26.18, reinforcing its undervaluation. The company’s EV to EBITDA ratio of 9.01 is also more attractive than AbbVie, Inc. at 16.51. Despite the positive valuation metrics, Bristol Myers Squibb has underperformed the S&P 500 in recent periods, with a year-to-date return of -19.38% compared to the S&P 500's 12.22%, suggesting that the market may not fully recognize its value yet.