Thermo Fisher Scientific Inc.

NYSE:TMO Stock Report

Market Cap: US$194.7b

Thermo Fisher Scientific Valuation

Is TMO undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of TMO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: TMO ($512.84) is trading below our estimate of fair value ($786.93)

Significantly Below Fair Value: TMO is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for TMO?

Key metric: As TMO is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for TMO. This is calculated by dividing TMO's market cap by their current earnings.
What is TMO's PE Ratio?
PE Ratio32x
EarningsUS$6.14b
Market CapUS$194.74b

Price to Earnings Ratio vs Peers

How does TMO's PE Ratio compare to its peers?

The above table shows the PE ratio for TMO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average31.3x
DHR Danaher
42.8x14.0%US$166.7b
A Agilent Technologies
26.1x4.1%US$36.1b
IQV IQVIA Holdings
25.1x13.8%US$34.7b
MTD Mettler-Toledo International
30.9x7.8%US$24.5b
TMO Thermo Fisher Scientific
32x11.7%US$194.7b

Price-To-Earnings vs Peers: TMO is expensive based on its Price-To-Earnings Ratio (32x) compared to the peer average (31.3x).

Price to Earnings Ratio vs Industry

How does TMO's PE Ratio compare vs other companies in the US Life Sciences Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
REPC.F RepliCel Life Sciences
0.3xn/aUS$65.00k
No more companies available in this PE range
TMO 32.0xIndustry Avg. 33.6xNo. of Companies4PE020406080100+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: TMO is good value based on its Price-To-Earnings Ratio (32x) compared to the Global Life Sciences industry average (33.6x).

Price to Earnings Ratio vs Fair Ratio

What is TMO's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

TMO PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio32x
Fair PE Ratio35.1x

Price-To-Earnings vs Fair Ratio: TMO is good value based on its Price-To-Earnings Ratio (32x) compared to the estimated Fair Price-To-Earnings Ratio (35.1x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst TMO forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$512.84
US$653.35
+27.4%
5.9%US$767.00US$585.20n/a27
Nov ’25US$557.92
US$656.23
+17.6%
5.5%US$767.00US$600.00n/a27
Oct ’25US$612.94
US$652.08
+6.4%
5.9%US$767.00US$565.00n/a26
Sep ’25US$615.07
US$632.44
+2.8%
4.6%US$690.00US$565.00n/a25
Aug ’25US$621.77
US$631.92
+1.6%
4.4%US$677.00US$565.00n/a25
Jul ’25US$541.72
US$628.80
+16.1%
4.5%US$677.00US$553.00n/a25
Jun ’25US$567.98
US$627.47
+10.5%
4.5%US$677.00US$553.00n/a25
May ’25US$574.99
US$624.45
+8.6%
4.8%US$677.00US$553.00n/a26
Apr ’25US$577.45
US$599.75
+3.9%
5.5%US$677.00US$520.00n/a26
Mar ’25US$576.33
US$598.94
+3.9%
5.6%US$677.00US$520.00n/a25
Feb ’25US$552.23
US$585.04
+5.9%
5.8%US$650.00US$520.00n/a23
Jan ’25US$530.79
US$547.44
+3.1%
9.4%US$640.00US$435.00n/a25
Dec ’24US$496.13
US$531.22
+7.1%
8.8%US$635.00US$435.00n/a23
Nov ’24US$441.11
US$534.70
+21.2%
9.2%US$635.00US$435.00US$557.9223
Oct ’24US$506.17
US$622.00
+22.9%
6.3%US$693.00US$520.00US$612.9424
Sep ’24US$557.22
US$626.67
+12.5%
6.2%US$693.00US$520.00US$615.0724
Aug ’24US$545.84
US$628.12
+15.1%
6.2%US$698.00US$520.00US$621.7725
Jul ’24US$521.75
US$628.29
+20.4%
7.2%US$700.00US$505.00US$541.7224
Jun ’24US$519.38
US$628.87
+21.1%
7.2%US$700.00US$505.00US$567.9823
May ’24US$548.50
US$636.91
+16.1%
7.2%US$710.00US$505.00US$574.9922
Apr ’24US$576.37
US$648.91
+12.6%
7.1%US$711.00US$505.00US$577.4522
Mar ’24US$538.52
US$648.91
+20.5%
7.1%US$711.00US$505.00US$576.3322
Feb ’24US$587.36
US$634.46
+8.0%
8.5%US$711.00US$505.00US$552.2319
Jan ’24US$550.69
US$617.94
+12.2%
8.2%US$715.00US$525.00US$530.7922
Dec ’23US$564.56
US$615.69
+9.1%
8.5%US$715.00US$525.00US$496.1320
Nov ’23US$517.69
US$614.19
+18.6%
8.8%US$715.00US$525.00US$441.1120

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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