AbbVie or Bristol-Myers Squibb: which stock is cheaper in 2026?
As of October 5, 2026, AbbVie (ABBV) trades at 74.0× earnings (P/E) and Bristol-Myers Squibb (BMY) at 13.5×, according to Kaplio. The median across the 157 pharma companies above $2bn in Kaplio's universe is 27.5×. Kaplio's verdict: AbbVie, expensive; Bristol-Myers Squibb, cheap. Value range by multiples: $88–$97 for AbbVie and $95–$130 for Bristol-Myers Squibb. Against its own value range, Bristol-Myers Squibb is the cheaper of the two today.
According to the Kaplio Summary
The same verdict as each company's page: price range by multiples, the four lights, the expected return if consensus is right and what Buffett and Lynch would say today.
| AbbVie (ABBV) | Bristol-Myers Squibb (BMY) | |
|---|---|---|
| Summary valuation | expensive ($88–$97) | cheap ($95–$130) |
| The four lights | Valuation: P/E 74.0× (expensive) Business: ROIC 13 % (fair) Balance sheet: Net debt/EBITDA 3.6× (fragile) Results: 7 of 8 (on track) | Valuation: P/E 13.5× (cheap) Business: ROIC 15 % (solid) Balance sheet: Net debt/EBITDA 2.4× (passes, near the threshold) Results: 8 of 8 (on track) |
| Expected return (per year) | +6.8 % a year (to 2028) | +15.5 % a year (to 2028) |
| Buffett method | quality 49 · would not approve | quality 53 · would not approve |
| Lynch method | turnaround · would not approve | outside his circle |
Metrics side by side
| Metric | AbbVie (ABBV) | Bristol-Myers Squibb (BMY) |
|---|---|---|
| Overview | ||
| Market Cap | $464B | $125B |
| Price | $262.82 | $61.15 |
| Valuation | ||
| P/E | 74.0× | 13.5× |
| P/B | -79.3× | 5.4× |
| P/S | 7.3× | 2.4× |
| EV/EBITDA | 24.9× | 9.3× |
| FCF Yield | 4.2 % | 9.5 % |
| Dividend Yield | 2.6 % | 4.1 % |
| Profitability | ||
| ROIC | 13.0 % | 15.0 % |
| ROE | -136.5 % | 46.8 % |
| Gross Margin | 71.5 % | 70.2 % |
| Operating Margin | 29.3 % | 28.3 % |
| Net Margin | 9.8 % | 18.9 % |
| Growth | ||
| Revenue 5Y CAGR | 6.0 % | 2.5 % |
| EPS 5Y CAGR | -2.8 % | — |
| FCF 5Y CAGR | 1.2 % | -0.7 % |
| Balance Sheet | ||
| Net Debt / EBITDA | 3.6× | 2.4× |
| Debt / Equity | -11.9× | 1.9× |
Trailing twelve months where available; otherwise the latest fiscal year. Growth: five-year compound annual rate.