Question 1

What is Bristol-Myers Squibb Co.'s WACC?

Accepted Answer

Bristol-Myers Squibb Co. (BMY) has a Weighted Average Cost of Capital (WACC) of 5.70%. This is calculated using a Cost of Equity of 6.58% (via CAPM with a beta of 0.30) and a pre-tax Cost of Debt of 4.19%, with an equity weight of 73.14% in the capital structure.

Question 2

Is Bristol-Myers Squibb Co.'s WACC high or low?

Accepted Answer

Bristol-Myers Squibb Co.'s WACC of 5.70% is below the typical range of 8-12% for most companies, indicating relatively low cost of capital and lower risk. WACC is used as the discount rate in DCF valuations — a lower WACC results in higher present values of future cash flows.

Question 3

How is Bristol-Myers Squibb Co.'s WACC calculated?

Accepted Answer

Bristol-Myers Squibb Co.'s WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 6.58% is derived from the CAPM model using a beta of 0.30. The pre-tax Cost of Debt (Rd) is 4.19%. The capital structure is 73.14% equity and 26.86% debt.

Bristol-Myers Squibb Co. (BMY) — WACC 分析

WACC 构成

解读

Bristol-Myers Squibb Co.（BMY）WACC：5.70%

WACC计算器

Bristol-Myers Squibb Co.（BMY） WACC 解读

BMY 公司分析

BMY DCF 估值

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