Thermo Fisher Scientific Inc. (TMO) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-35.2%

$444.03

vs $685.29 price

Levered DCF

$321.70

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

4.18

Safe zone

Rating

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	32.61×	31.38×	34.18×	31.06×	34.03×	28.93×	35.16×	30.61×
P/B	4.08×	4.01×	4.38×	4.91×	6.44×	5.35×	4.38×	3.26×
P/S	4.89×	4.63×	4.78×	4.81×	6.7×	5.73×	5.09×	3.69×
EV / EBITDA	21.58×	19.28×	20.83×	20.38×	24.63×	19.46×	20.79×	17.25×
Gross margin	40.9%	41.3%	40.1%	42.3%	50.1%	49.7%	44.4%	45.1%
Operating margin	18.2%	17.9%	17.4%	19.0%	26.3%	24.5%	16.7%	15.9%
Net margin	15.1%	14.8%	14.0%	15.5%	19.7%	19.8%	14.5%	12.1%
Current ratio	1.89×	1.66×	1.75×	1.48×	1.5×	2.13×	1.92×	1.73×
Debt / equity	0.74×	0.66×	0.78×	0.82×	0.89×	0.65×	0.62×	0.69×
Interest coverage	5.71×	4.63×	4.99×	11.74×	19.25×	14.28×	6.3×	5.81×
Dividend yield	0.3%	0.3%	0.3%	0.2%	0.2%	0.2%	0.2%	0.3%
Payout ratio	9.4%	9.2%	8.7%	6.5%	5.1%	5.3%	8.0%	9.1%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	12.6%	12.8%	12.8%	15.8%	18.9%	18.5%	12.5%	10.7%
Return on invested capital	7.6%	8.0%	8.0%	9.0%	10.7%	11.3%	7.3%	6.8%
Return on assets	6.1%	6.5%	6.1%	7.2%	8.1%	9.2%	6.3%	5.2%
Free cash flow yield	2.9%	3.7%	3.4%	3.2%	2.7%	3.7%	3.1%	4.2%
Earnings yield	3.1%	3.2%	2.9%	3.2%	2.9%	3.5%	2.8%	3.3%
Enterprise value	$247.4B	$227.5B	$233.2B	$243.4B	$294.8B	$196.7B	$146B	$106.9B
Net debt / EBITDA	2.58×	2.44×	2.53×	2.31×	2.66×	1.21×	2.29×	2.73×
Cash conversion cycle (days)	112	109	114	108	124	115	108	107