PEG Ratio

The PEG ratio (Price/Earnings to Growth) compares a stock’s price to its expected earnings growth rate, so a value of 1.80x means BMY’s share price is 1.8 times its projected annual earnings growth.

BMY’s PEG of 1.80x sits well above the sector median of 0.97x and ranks in the 68th percentile among peers, indicating its valuation is higher than the majority of comparable companies. Over the last eight quarters, the PEG trend has been increasing, though the year-over-year change is not available and the quarter-over-quarter change shows a -1.6% decline from 1.83x to the current 1.80x. The combination of a PEG that is substantially above the sector median and a long-term upward trend (even with a recent slight dip) signals that the stock’s price has become stretched relative to its growth potential, raising valuation risk. This metric directly supports the overall CAUTIOUS verdict because the elevated PEG suggests that expected earnings growth may not be strong enough to justify the current price level.

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