Thermo Fisher Scientific (TMO): Assessing Valuation After Recent 22% Share Price Surge

Thermo Fisher Scientific (TMO) has attracted some attention recently as investors weigh its strong performance over the past quarter. The company’s stock is up more than 22% over the past 3 months, which has sparked fresh conversations around its valuation.

See our latest analysis for Thermo Fisher Scientific.

After a standout quarter, Thermo Fisher Scientific’s momentum has turned heads. The stock’s 22% surge over the last three months points to renewed optimism, even as its one-year total shareholder return remains a modest 2%. Overall, the company’s performance suggests that investors are warming up to its growth potential after a rocky stretch earlier in the year.

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This recent run raises a key question: is Thermo Fisher now trading below its true value, or are investors fully pricing in the company’s growth potential, leaving little room for upside from here?

Most Popular Narrative: 6% Undervalued

Thermo Fisher Scientific’s fair value is estimated at $604, placing it above the recent closing price of $567.39. This invites a closer look at how projected growth and margin improvements are fueling optimism for further gains.

The company's positioning as a trusted, end-to-end partner for pharma and biotech enables greater customer stickiness and deeper integration into high-growth markets like clinical research, outsourcing (CDMO), and lab services. This enhances recurring revenue streams and supports high single-digit earnings growth over time.

Read the complete narrative.

Curious why the market thinks this stock could break out? The narrative’s math is built on aggressive forecasts, future margin acceleration, and a valuation multiple that rivals industry heavyweights. Want to uncover the bold assumptions and analyst logic pushing this price target? Read the full narrative and see what’s really driving the fair value.

Result: Fair Value of $604 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent funding uncertainty and challenges in key international markets could still limit Thermo Fisher’s ability to sustain its current pace of growth.

Find out about the key risks to this Thermo Fisher Scientific narrative.

Build Your Own Thermo Fisher Scientific Narrative

If you see the story differently or want to dive into the numbers yourself, you can craft your own perspective in just a few minutes. Do it your way

A great starting point for your Thermo Fisher Scientific research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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