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 Fair zone, suggesting that its current forward PE ratio of 24.35 is considered Fairly compared with the five-year average of 24.07. The fair price of Thermo Fisher Scientific Inc (TMO) is between 584.94 to 696.63 according to relative valuation methord.
Relative Value
Fair Zone
584.94-696.63
Current Price：586.49
Fair
24.42
PE
1Y
3Y
5Y
Trailing
Forward
21.51
EV/EBITDA
Thermo Fisher Scientific Inc. (TMO) has a current EV/EBITDA of 21.51. The 5-year average EV/EBITDA is 20.67. The thresholds are as follows: Strongly Undervalued below 16.47, Undervalued between 16.47 and 18.57, Fairly Valued between 22.78 and 18.57, Overvalued between 22.78 and 24.88, and Strongly Overvalued above 24.88. The current Forward EV/EBITDA of 21.51 falls within the Historic Trend Line -Fairly Valued range.
23.73
EV/EBIT
Thermo Fisher Scientific Inc. (TMO) has a current EV/EBIT of 23.73. The 5-year average EV/EBIT is 22.73. The thresholds are as follows: Strongly Undervalued below 17.91, Undervalued between 17.91 and 20.32, Fairly Valued between 25.14 and 20.32, Overvalued between 25.14 and 27.54, and Strongly Overvalued above 27.54. The current Forward EV/EBIT of 23.73 falls within the Historic Trend Line -Fairly Valued range.
588.02
PS
Thermo Fisher Scientific Inc. (TMO) has a current PS of 588.02. The 5-year average PS is 10.00. The thresholds are as follows: Strongly Undervalued below -96.25, Undervalued between -96.25 and -43.13, Fairly Valued between 63.13 and -43.13, Overvalued between 63.13 and 116.26, and Strongly Overvalued above 116.26. The current Forward PS of 588.02 falls within the Strongly Overvalued range.
20.24
P/OCF
Thermo Fisher Scientific Inc. (TMO) has a current P/OCF of 20.24. The 5-year average P/OCF is 22.15. The thresholds are as follows: Strongly Undervalued below 16.30, Undervalued between 16.30 and 19.22, Fairly Valued between 25.07 and 19.22, Overvalued between 25.07 and 28.00, and Strongly Overvalued above 28.00. The current Forward P/OCF of 20.24 falls within the Historic Trend Line -Fairly Valued range.
23.82
P/FCF
Thermo Fisher Scientific Inc. (TMO) has a current P/FCF of 23.82. The 5-year average P/FCF is 27.14. The thresholds are as follows: Strongly Undervalued below 17.54, Undervalued between 17.54 and 22.34, Fairly Valued between 31.94 and 22.34, Overvalued between 31.94 and 36.75, and Strongly Overvalued above 36.75. The current Forward P/FCF of 23.82 falls within the Historic Trend Line -Fairly Valued range.
Thermo Fisher Scientific Inc (TMO) has a current Price-to-Book (P/B) ratio of 4.32. Compared to its 3-year average P/B ratio of 4.40 , the current P/B ratio is approximately -1.89% higher. Relative to its 5-year average P/B ratio of 4.86, the current P/B ratio is about -11.09% higher. Thermo Fisher Scientific Inc (TMO) has a Forward Free Cash Flow (FCF) yield of approximately 2.77%. Compared to its 3-year average FCF yield of 3.35%, the current FCF yield is approximately -17.20% lower. Relative to its 5-year average FCF yield of 3.36% , the current FCF yield is about -17.56% lower.
4.33
P/B
Median3y
4.40
Median5y
4.86
2.77
FCF Yield
Median3y
3.35
Median5y
3.36
Competitors Valuation Multiple
The average P/S ratio for TMO's competitors is 330.03, providing a benchmark for relative valuation. Thermo Fisher Scientific Inc Corp (TMO) exhibits a P/S ratio of 588.02, which is 78.17% 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 11.11% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 30.47 to 33.96.
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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