Thermo Fisher Scientific (TMO): Reassessing Valuation After Recent Share Price Gains

Thermo Fisher Scientific (TMO) has quietly edged higher over the past month, gaining about 3% and extending a roughly 18% climb in the past 3 months. This performance is prompting a fresh look at its valuation.

See our latest analysis for Thermo Fisher Scientific.

Zooming out, Thermo Fisher Scientific’s 11.08% year to date share price return and 11.83% total shareholder return over the past year suggest steady, rebuilding momentum as investors grow more comfortable with its growth and earnings trajectory around $580.45 per share.

If Thermo Fisher’s move has you thinking more broadly about healthcare and life sciences, this could be a good moment to explore other healthcare stocks that might fit your strategy.

With Thermo Fisher still trading below analyst targets yet already reflecting solid growth and margin gains, investors face a key question: is this a reasonable entry point, or is the market already pricing in the next leg of expansion?

Most Popular Narrative Narrative: 5.4% Undervalued

With Thermo Fisher closing at $580.45 against a most popular narrative fair value near the low $600s, the story leans modestly in favor of upside while hinging on specific growth and profitability assumptions.

Strong momentum in high impact innovation, evidenced by next generation analytical tools like the Orbitrap mass spectrometers and AI integration into drug development workflows, positions Thermo Fisher to capture incremental share as genomics and precision medicine proliferate, structurally boosting future revenues and margins.

Read the complete narrative.

Curious how steady mid single digit growth, rising profit margins and a richer future earnings multiple can still point to upside from here? The narrative leans on a detailed roadmap of expanding revenues, higher earnings power and a valuation profile usually reserved for sector leaders, but the exact mix of assumptions may surprise you. Want to see which long term projections actually drive that fair value gap?

Result: Fair Value of $613.58 (UNDERVALUED)

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

However, this upside case could unravel if China’s weakness persists or if academic and government funding pressures further dampen instrument and consumables demand.

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

Another Angle on Valuation

On earnings, Thermo Fisher looks a little rich, trading on a P E of 33.2 times versus a fair ratio of 30.9 times, even if it still sits below the Life Sciences industry at 37 times and peers at 35.9 times. Is that premium breathing room, or margin for disappointment?

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own Thermo Fisher Scientific Narrative

If you see the story differently or want to test your own assumptions against the numbers, you can build a custom view 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 2 important warning signs 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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