BMYCAUTIOUS

BMY EV/EBITDA Analysis

9.0x

Updated 129h ago·SEC filings & market data

Key Takeaway

EV/EBITDA measures a company’s total value (including debt) relative to its pre-tax operating earnings; at 8.8x, BMY trades at 8.8 times that earnings measure.

Sector Performance

27th percentile

BMY

9.0x

Sector Median

13.6x

Sector Avg

-30.9x

Prior Period

8.8x(Aug 2026)

↓ Declining

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Deep Analysis

EV/EBITDA measures a company’s total value (including debt) relative to its pre-tax operating earnings; at 8.8x, BMY trades at 8.8 times that earnings measure.

That is well below the sector median of 13.9x, placing BMY in the 26th percentile among peers, meaning most comparable companies are more expensive. The multiple is increasing, up 12.3% year-over-year and 4.6% quarter-over-quarter, with the last eight quarters showing a steady climb from 7.9x to 8.8x. The level is still cheap versus peers, but the upward trend means the market is paying progressively more for each dollar of earnings, reducing the margin of safety. For an investor, this combination offers moderate opportunity if earnings grow into the higher multiple, yet it also introduces risk if the re-rating outpaces fundamentals. This metric does not contradict the overall CAUTIOUS verdict — it supports it, as a rising EV/EBITDA on a still-undervalued stock can reflect premature optimism, not proven improvement.

Frequently Asked Questions

What does the EV/EBITDA tell investors about BMY?

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.

How is the EV/EBITDA calculated?

EV/EBITDA is calculated as: Enterprise Value / EBITDA.

Who are BMY's closest peers by EV/EBITDA?

The closest peers by EV/EBITDA include: SMTC (76.6x), SHOP (80.2x), OKTA (83.5x), TEAM (101.4x), STEM (102.7x).

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Learn More About EV/EBITDA

EV/EBITDA Explained: The Valuation Metric Pro Investors Actually Use

Learn what EV/EBITDA is, why it beats P/E for capital-heavy companies, typical sector ranges, and key limitations every serious investor should know.

The Formula

Enterprise Value / EBITDA

Why It Matters

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.