Thermo Fisher Scientific Inc.

NYSE:TMO Stock Report

Market Cap: US$197.6b

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 ($524.05) is trading below our estimate of fair value ($806.93)

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 Ratio32.7x
EarningsUS$6.14b
Market CapUS$197.63b

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 Average32.5x
DHR Danaher
42x13.4%US$163.3b
A Agilent Technologies
29.8x8.2%US$38.0b
IQV IQVIA Holdings
25.5x13.5%US$34.8b
MTD Mettler-Toledo International
32.6x7.4%US$25.5b
TMO Thermo Fisher Scientific
32.7x11.5%US$197.6b

Price-To-Earnings vs Peers: TMO is expensive based on its Price-To-Earnings Ratio (32.7x) compared to the peer average (32.5x).

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$123.50k
No more companies available in this PE range
TMO 32.7xIndustry Avg. 36.2xNo. 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 (32.7x) compared to the Global Life Sciences industry average (36.2x).

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 Ratio32.7x
Fair PE Ratio35x

Price-To-Earnings vs Fair Ratio: TMO is good value based on its Price-To-Earnings Ratio (32.7x) compared to the estimated Fair Price-To-Earnings Ratio (35x).

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$524.05
US$652.08
+24.4%
5.9%US$767.00US$585.20n/a28
Dec ’25US$529.63
US$653.94
+23.5%
5.8%US$767.00US$585.20n/a28
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$435.00US$529.6323
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

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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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/20 05:01
End of Day Share Price 2024/12/20 00:00
Earnings2024/09/28
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Thermo Fisher Scientific Inc. is covered by 55 analysts. 28 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Kadambari DaptardarAccountability Research Corporation
David ToungArgus Research Company
Catherine Ramsey SchulteBaird