In spite of the share price falling more than 30% since mid-2016 after disappointing results for Opdivo in lung cancer in the Checkmate-026 study, I don't think Bristol-Myers Squibb (NYSE:BMY) offers a compelling risk/reward with the stock trading at 14.7 EV/EBITDA NTM.
Thus, in this article, I will focus on a quantitative valuation of the company to assess if there is any upside as a standalone entity.
Base Case
DCF analysis, with inputs slightly below analyst estimates, shows that BMY's valuation doesn't look attractive.
