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 24.60 is considered Fairly compared with the five-year average of 24.15. The fair price of Thermo Fisher Scientific Inc (TMO) is between 612.31 to 727.46 according to relative valuation methord.
Relative Value
Fair Zone
612.31-727.46
Current Price：620.72
Fair
24.60
PE
1Y
3Y
5Y
21.64
EV/EBITDA
Thermo Fisher Scientific Inc. (TMO) has a current EV/EBITDA of 21.64. The 5-year average EV/EBITDA is 20.77. The thresholds are as follows: Strongly Undervalued below 16.73, Undervalued between 16.73 and 18.75, Fairly Valued between 22.79 and 18.75, Overvalued between 22.79 and 24.81, and Strongly Overvalued above 24.81. The current Forward EV/EBITDA of 21.64 falls within the Historic Trend Line -Fairly Valued range.
23.87
EV/EBIT
Thermo Fisher Scientific Inc. (TMO) has a current EV/EBIT of 23.87. The 5-year average EV/EBIT is 22.85. The thresholds are as follows: Strongly Undervalued below 18.28, Undervalued between 18.28 and 20.56, Fairly Valued between 25.14 and 20.56, Overvalued between 25.14 and 27.43, and Strongly Overvalued above 27.43. The current Forward EV/EBIT of 23.87 falls within the Historic Trend Line -Fairly Valued range.
4.83
PS
Thermo Fisher Scientific Inc. (TMO) has a current PS of 4.83. The 5-year average PS is 4.94. The thresholds are as follows: Strongly Undervalued below 3.70, Undervalued between 3.70 and 4.32, Fairly Valued between 5.56 and 4.32, Overvalued between 5.56 and 6.18, and Strongly Overvalued above 6.18. The current Forward PS of 4.83 falls within the Historic Trend Line -Fairly Valued range.
20.42
P/OCF
Thermo Fisher Scientific Inc. (TMO) has a current P/OCF of 20.42. The 5-year average P/OCF is 22.03. The thresholds are as follows: Strongly Undervalued below 16.12, Undervalued between 16.12 and 19.08, Fairly Valued between 24.98 and 19.08, Overvalued between 24.98 and 27.93, and Strongly Overvalued above 27.93. The current Forward P/OCF of 20.42 falls within the Historic Trend Line -Fairly Valued range.
24.03
P/FCF
Thermo Fisher Scientific Inc. (TMO) has a current P/FCF of 24.03. The 5-year average P/FCF is 26.96. The thresholds are as follows: Strongly Undervalued below 17.27, Undervalued between 17.27 and 22.12, Fairly Valued between 31.81 and 22.12, Overvalued between 31.81 and 36.66, and Strongly Overvalued above 36.66. The current Forward P/FCF of 24.03 falls within the Historic Trend Line -Fairly Valued range.
Thermo Fisher Scientific Inc (TMO) has a current Price-to-Book (P/B) ratio of 4.36. Compared to its 3-year average P/B ratio of 4.37 , the current P/B ratio is approximately -0.11% higher. Relative to its 5-year average P/B ratio of 4.81, the current P/B ratio is about -9.36% higher. Thermo Fisher Scientific Inc (TMO) has a Forward Free Cash Flow (FCF) yield of approximately 2.75%. Compared to its 3-year average FCF yield of 3.36%, the current FCF yield is approximately -18.34% lower. Relative to its 5-year average FCF yield of 3.36% , the current FCF yield is about -18.22% lower.
4.36
P/B
Median3y
4.37
Median5y
4.81
2.75
FCF Yield
Median3y
3.36
Median5y
3.36
Competitors Valuation Multiple
The average P/S ratio for TMO's competitors is 7.58, providing a benchmark for relative valuation. Thermo Fisher Scientific Inc Corp (TMO) exhibits a P/S ratio of 4.83, which is -36.3% above the industry average. Given its robust revenue growth of 4.94%, this premium appears unsustainable.
Performance Decomposition
1Y
3Y
5Y
Market capitalization of TMO increased by 3.84% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 10.60B to 11.12B.
The secondary factor is the P/E Change, contributed 4.17%to the performance.
Overall, the performance of TMO in the past 1 year is driven by Revenue Growth. Which is more sustainable.
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Frequently Asked Questions
Is Thermo Fisher Scientific Inc (TMO) currently overvalued or undervalued?
Thermo Fisher Scientific Inc (TMO) is now in the Fair zone, suggesting that its current forward PE ratio of 24.60 is considered Fairly compared with the five-year average of 24.15. The fair price of Thermo Fisher Scientific Inc (TMO) is between 612.31 to 727.46 according to relative valuation methord.
What is Thermo Fisher Scientific Inc (TMO) fair value?
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. The fair price of Thermo Fisher Scientific Inc (TMO) is between 612.31 to 727.46 according to relative valuation methord.
How does TMO's valuation metrics compare to the industry average?
The average P/S ratio for TMO's competitors is 7.58, providing a benchmark for relative valuation. Thermo Fisher Scientific Inc Corp (TMO) exhibits a P/S ratio of 4.83, which is -36.30% above the industry average. Given its robust revenue growth of 4.94%, this premium appears unsustainable.
What is the current P/B ratio for Thermo Fisher Scientific Inc (TMO) as of Jan 07 2026?
As of Jan 07 2026, Thermo Fisher Scientific Inc (TMO) has a P/B ratio of 4.36. This indicates that the market values TMO at 4.36 times its book value.
What is the current FCF Yield for Thermo Fisher Scientific Inc (TMO) as of Jan 07 2026?
As of Jan 07 2026, Thermo Fisher Scientific Inc (TMO) has a FCF Yield of 2.75%. This means that for every dollar of Thermo Fisher Scientific Inc’s market capitalization, the company generates 2.75 cents in free cash flow.
What is the current Forward P/E ratio for Thermo Fisher Scientific Inc (TMO) as of Jan 07 2026?
As of Jan 07 2026, Thermo Fisher Scientific Inc (TMO) has a Forward P/E ratio of 24.60. This means the market is willing to pay $24.60 for every dollar of Thermo Fisher Scientific Inc’s expected earnings over the next 12 months.
What is the current Forward P/S ratio for Thermo Fisher Scientific Inc (TMO) as of Jan 07 2026?
As of Jan 07 2026, Thermo Fisher Scientific Inc (TMO) has a Forward P/S ratio of 4.83. This means the market is valuing TMO at $4.83 for every dollar of expected revenue over the next 12 months.