Why Bristol Myers Squibb Stock Isn't Nearly As Cheap As It Looks

Bristol Myers Squibb (NYSE: BMY) is a well-respected pharmaceutical company. Technically, it was created in 1989 through the merger of two other companies, but both of those businesses were founded in the 1800s. It is a proven survivor that clearly knows how to navigate the highly complex and competitive drug industry. And the stock looks cheap today. But is it really as cheap as it looks?Bristol Myers Squibb's price-to-earnings ratio is currently sitting around 16x. That's well below the S&P 500's (SNPINDEX: ^GSPC) 27x and the pharmaceutical industry's 24x average. Meanwhile, Bristol Myers Squibb's dividend yield is a highly attractive 4.4%. By comparison, the S&P 500 index has a yield of 1.1%, and the average drug maker's yield is around 1.7%.Image source: Getty Images.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool