Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Estimate the per share value of Bristol-Myers Squibb (BMY) common stock using the EV/EBITDA model . The analyst consensus EBITDA forecast for the next fiscal

Estimate the per share value of Bristol-Myers Squibb (BMY) common stock using the EV/EBITDA model. The analyst consensus EBITDA forecast for the next fiscal year is $7,507.7 million. Debt is $7,307.0 million and number of shares outstanding is 1,632.2 million. Other necessary information can be obtained from the table shown below

Bristol-Myers Squibb

Enterprise

Enterprise

Enterprise

Total Debt/

Company

Value/

Value/

Value/

Enterprise

Name

Sales

EBIT

EBITDA

Value

Bristol-Myers Squibb

3.76x

19.17x

16.39x

8.82%

Average

4.96x

20.31x

14.49x

12.47%

Median

4.96x

20.11x

15.23x

11.49%

Pfizer

5.00x

17.80x

12.52x

15.38%

Eli Lilly

4.96x

20.11x

15.71x

10.54%

Merck

4.92x

23.03x

15.23x

11.49%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Management For Public Health And Not For Profit Organization

Authors: Steven A. Finkler

3rd International Edition

0138152772, 9780138152772

More Books

Students also viewed these Finance questions