Bristol-Myers Squibb Company (NYSE:BMY) maintained its current share price over the past couple of month on the NYSE, with a relatively tight range of $59.94 to $65.35. However, does this price actually reflect the true value of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at BMY’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. Check out our latest analysis for Bristol-Myers Squibb

What is BMY worth?

According to my valuation model, BMY seems to be fairly priced at around 5% below my intrinsic value, which means if you buy BMY today, you’d be paying a reasonable price for it. And if you believe that BMY is really worth $66.01, then there’s not much of an upside to gain from mispricing. So, is there another chance to buy low in the future? Given that BMY’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us an opportunity to buy later on. This is based on its high beta, which is a good indicator for share price volatility.

Can we expect growth from BMY?

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. With profit expected to grow by 54.07% over the next couple of years, the future seems bright for BMY. It looks like higher cash flows is on the cards for the stock, which should feed into a higher share valuation.

What this means for you:

Are you a shareholder? BMY’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the track record of its management team. Have these factors changed since the last time you looked at BMY? Will you have enough confidence to invest in the company should the price drop below its fair value?

Are you a potential investor? If you’ve been keeping tabs on BMY, now may not be the most optimal time to buy, given it is trading around its fair value. However, the optimistic prospect is encouraging for BMY, which means it’s worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Bristol-Myers Squibb. You can find everything you need to know about BMY in the latest infographic research report. If you are no longer interested in Bristol-Myers Squibb, you can use our free platform to see my list of over 50 other stocks with a high growth potential.

To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.