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What Happens If Bristol-Myers Squibb Reaches A PE Of 10?
Bristol-Myers Squibb is one of the best performing stocks in history. The company is a well-known biopharma giant with many top-selling specialty drugs like Opdivo. Bristol-Myers is also developing over 50 new medications, aimed at solving more than 40 different health complications.
Additionally, this is a stock which Warren Buffett loves. Berkshire Hathaway purchased 28.7 million Bristol-Myers Squibb shares over the past year.
Cathie Wood also likes Bristol-Myers, and owns 2.2. million shares in her ARKG fund.
Despite all this good news, Bristol-Myers Squibb is priced like it’s completely stagnate. The company has an earnings per share of $7.47, and a stock price of $65 — $67.
This gives Bristol-Myers Squibb a price earnings ratio of about 8.75.
For comparison, cigarette maker Altria — a company that is constantly plagued with bad news — trades at a PE ratio of 10.25.
Technically speaking, international pharmaceutical powerhouse Bristol-Myers Squibb is cheaper than the US-only manufacturer of Marlboro cigarettes. So much for efficient-market hypothesis!
