TMO Relative Valuation
TMO's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, TMO is overvalued; if below, it's undervalued.
Historical Valuation
Thermo Fisher Scientific Inc (TMO) is now in the Undervalued zone, suggesting that its current forward PE ratio of 24.10 is considered Undervalued compared with the five-year average of 24.10. The fair price of Thermo Fisher Scientific Inc (TMO) is between 585.52 to 696.48 according to relative valuation methord. Compared to the current price of 580.45 USD , Thermo Fisher Scientific Inc is Undervalued By 0.87%.
Relative Value
Fair Zone
585.52-696.48
Current Price：580.45
0.87%
Undervalued
23.89
PE
1Y
3Y
5Y
Trailing
Forward
21.27
EV/EBITDA
Thermo Fisher Scientific Inc. (TMO) has a current EV/EBITDA of 21.27. The 5-year average EV/EBITDA is 20.71. The thresholds are as follows: Strongly Undervalued below 16.58, Undervalued between 16.58 and 18.64, Fairly Valued between 22.77 and 18.64, Overvalued between 22.77 and 24.84, and Strongly Overvalued above 24.84. The current Forward EV/EBITDA of 21.27 falls within the Historic Trend Line -Fairly Valued range.
23.47
EV/EBIT
Thermo Fisher Scientific Inc. (TMO) has a current EV/EBIT of 23.47. The 5-year average EV/EBIT is 22.77. The thresholds are as follows: Strongly Undervalued below 18.07, Undervalued between 18.07 and 20.42, Fairly Valued between 25.13 and 20.42, Overvalued between 25.13 and 27.48, and Strongly Overvalued above 27.48. The current Forward EV/EBIT of 23.47 falls within the Historic Trend Line -Fairly Valued range.
4.73
PS
Thermo Fisher Scientific Inc. (TMO) has a current PS of 4.73. The 5-year average PS is 4.95. The thresholds are as follows: Strongly Undervalued below 3.71, Undervalued between 3.71 and 4.33, Fairly Valued between 5.57 and 4.33, Overvalued between 5.57 and 6.19, and Strongly Overvalued above 6.19. The current Forward PS of 4.73 falls within the Historic Trend Line -Fairly Valued range.
19.98
P/OCF
Thermo Fisher Scientific Inc. (TMO) has a current P/OCF of 19.98. The 5-year average P/OCF is 22.07. The thresholds are as follows: Strongly Undervalued below 16.19, Undervalued between 16.19 and 19.13, Fairly Valued between 25.01 and 19.13, Overvalued between 25.01 and 27.95, and Strongly Overvalued above 27.95. The current Forward P/OCF of 19.98 falls within the Historic Trend Line -Fairly Valued range.
23.51
P/FCF
Thermo Fisher Scientific Inc. (TMO) has a current P/FCF of 23.51. The 5-year average P/FCF is 27.03. The thresholds are as follows: Strongly Undervalued below 17.38, Undervalued between 17.38 and 22.20, Fairly Valued between 31.85 and 22.20, Overvalued between 31.85 and 36.67, and Strongly Overvalued above 36.67. The current Forward P/FCF of 23.51 falls within the Historic Trend Line -Fairly Valued range.
Thermo Fisher Scientific Inc (TMO) has a current Price-to-Book (P/B) ratio of 4.27. Compared to its 3-year average P/B ratio of 4.39 , the current P/B ratio is approximately -2.63% higher. Relative to its 5-year average P/B ratio of 4.84, the current P/B ratio is about -11.67% higher. Thermo Fisher Scientific Inc (TMO) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 3.36%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 3.36% , the current FCF yield is about -100.00% lower.
4.24
P/B
Median3y
4.39
Median5y
4.84
2.80
FCF Yield
Median3y
3.36
Median5y
3.36
Competitors Valuation Multiple
The average P/S ratio for TMO's competitors is , providing a benchmark for relative valuation. Thermo Fisher Scientific Inc Corp (TMO) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 4.94%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of TMO increased by 10.57% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 29.96 to 33.22.
The secondary factor is the Revenue Growth, contributed 4.94%to the performance.
Overall, the performance of TMO in the past 1 year is driven by P/E Change. Which is more unsustainable.
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