Stock Analysis on Net

Thermo Fisher Scientific Inc. (NYSE:TMO)

Common Stock Valuation Ratios (Price Multiples)

Microsoft Excel

Current Valuation Ratios

Thermo Fisher Scientific Inc., current price multiples

Microsoft Excel
Thermo Fisher Scientific Inc. AbbVie Inc. Amgen Inc. Bristol-Myers Squibb Co. Danaher Corp. Eli Lilly & Co. Gilead Sciences Inc. Johnson & Johnson Merck & Co. Inc. Moderna Inc. Pfizer Inc. Regeneron Pharmaceuticals Inc. Pharmaceuticals, Biotechnology & Life Sciences Health Care
Selected Financial Data
Current share price (P) $509.12
No. shares of common stock outstanding 382,500,265
Growth rate (g) 14.59%
 
Earnings per share (EPS) $15.67
Next year expected EPS $17.96
Operating profit per share $17.93
Sales per share $112.04
Book value per share (BVPS) $122.18
Valuation Ratios (Price Multiples)
Price to earnings (P/E) 32.48 60.53 22.40 14.72 35.15 132.19 19.30 10.48 669.07 67.13 20.70 32.99 29.13
Price to next year expected earnings 28.35 75.44 15.47 14.35 32.08 89.32 9.26 61.22 16.58 30.08 26.42
Price-earnings-growth (PEG) 2.23 0.50 5.69 3.67 2.75 0.80 6.96 0.83 3.41 2.83
Price to operating profit (P/OP) 28.39 23.07 19.06 16.22 32.05 107.27 14.38 17.37 103.70 640.73 20.22 33.19 24.72
Price to sales (P/S) 4.54 5.42 5.59 2.62 6.98 20.30 4.06 4.33 4.06 2.15 2.43 6.24 5.40 2.23
Price to book value (P/BV) 4.17 28.41 24.15 4.01 3.12 64.31 4.79 5.36 6.50 1.04 1.60 3.15 6.21 4.96

Based on: 10-K (reporting date: 2023-12-31).

If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.


Historical Valuation Ratios (Summary)

Thermo Fisher Scientific Inc., historical price multiples

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Price to earnings (P/E) 35.65 30.55 27.35 27.89 33.36
Price to operating profit (P/OP) 31.16 25.30 21.07 22.81 26.84
Price to sales (P/S) 4.99 4.73 5.39 5.52 4.83
Price to book value (P/BV) 4.57 4.83 5.18 5.15 4.16

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. Thermo Fisher Scientific Inc. P/E ratio increased from 2021 to 2022 and from 2022 to 2023.
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. Thermo Fisher Scientific Inc. P/OP ratio increased from 2021 to 2022 and from 2022 to 2023.
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. Thermo Fisher Scientific Inc. P/S ratio decreased from 2021 to 2022 but then slightly increased from 2022 to 2023.
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company required rate of return and its actual rate of return. Thermo Fisher Scientific Inc. P/BV ratio decreased from 2021 to 2022 and from 2022 to 2023.

Price to Earnings (P/E)

Thermo Fisher Scientific Inc., historical P/E calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
No. shares of common stock outstanding1 381,312,268 385,430,077 391,191,770 393,793,362 398,828,389
Selected Financial Data (US$)
Net income attributable to Thermo Fisher Scientific Inc. (in millions) 5,995 6,950 7,725 6,375 3,696
Earnings per share (EPS)2 15.72 18.03 19.75 16.19 9.27
Share price1, 3 560.49 550.95 540.17 451.47 309.16
Valuation Ratio
P/E ratio4 35.65 30.55 27.35 27.89 33.36
Benchmarks
P/E Ratio, Competitors5
AbbVie Inc. 63.84 22.62 22.07 40.17 17.82
Amgen Inc. 23.14 19.56 21.05 18.82 17.07
Bristol-Myers Squibb Co. 12.27 23.97 20.92 41.99
Danaher Corp. 39.09 25.65 29.94 44.49 38.34
Eli Lilly & Co. 135.24 50.08 40.66 31.95 16.19
Gilead Sciences Inc. 16.17 22.68 12.36 641.48 16.45
Johnson & Johnson 10.73 22.97 20.93 28.92 25.99
Merck & Co. Inc. 893.99 19.21 14.78 26.72 20.60
Moderna Inc. 6.43 5.00
Pfizer Inc. 73.42 7.58 11.76 19.62 11.63
Regeneron Pharmaceuticals Inc. 25.99 19.68 8.37 15.09 19.86
P/E Ratio, Sector
Pharmaceuticals, Biotechnology & Life Sciences 35.36 19.24 17.76 37.29 20.82
P/E Ratio, Industry
Health Care 30.09 20.36 19.87 29.50 21.10

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 Data adjusted for splits and stock dividends.

2 2023 Calculation
EPS = Net income attributable to Thermo Fisher Scientific Inc. ÷ No. shares of common stock outstanding
= 5,995,000,000 ÷ 381,312,268 = 15.72

3 Closing price as at the filing date of Thermo Fisher Scientific Inc. Annual Report.

4 2023 Calculation
P/E ratio = Share price ÷ EPS
= 560.49 ÷ 15.72 = 35.65

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. Thermo Fisher Scientific Inc. P/E ratio increased from 2021 to 2022 and from 2022 to 2023.

Price to Operating Profit (P/OP)

Thermo Fisher Scientific Inc., historical P/OP calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
No. shares of common stock outstanding1 381,312,268 385,430,077 391,191,770 393,793,362 398,828,389
Selected Financial Data (US$)
Operating income (in millions) 6,859 8,393 10,028 7,794 4,594
Operating profit per share2 17.99 21.78 25.63 19.79 11.52
Share price1, 3 560.49 550.95 540.17 451.47 309.16
Valuation Ratio
P/OP ratio4 31.16 25.30 21.07 22.81 26.84
Benchmarks
P/OP Ratio, Competitors5
AbbVie Inc. 24.34 14.78 14.21 16.32 10.82
Amgen Inc. 19.69 13.40 16.24 14.96 13.84
Bristol-Myers Squibb Co. 13.53 18.29 19.84 24.42
Danaher Corp. 35.64 20.97 25.14 36.91 34.47
Eli Lilly & Co. 109.75 43.88 35.70 32.66 27.08
Gilead Sciences Inc. 12.05 14.21 7.76 19.38 20.66
Johnson & Johnson 17.78 17.62 18.68 21.84 19.83
Merck & Co. Inc. 138.56 15.55 15.39 23.89 17.47
Moderna Inc. 5.71 4.59
Pfizer Inc. 700.76 6.80 13.30 23.12 14.36
Regeneron Pharmaceuticals Inc. 25.39 18.01 7.55 14.82 19.01
P/OP Ratio, Sector
Pharmaceuticals, Biotechnology & Life Sciences 35.58 15.37 15.55 27.63 18.65
P/OP Ratio, Industry
Health Care 25.54 15.88 16.54 21.85 17.29

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 Data adjusted for splits and stock dividends.

2 2023 Calculation
Operating profit per share = Operating income ÷ No. shares of common stock outstanding
= 6,859,000,000 ÷ 381,312,268 = 17.99

3 Closing price as at the filing date of Thermo Fisher Scientific Inc. Annual Report.

4 2023 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 560.49 ÷ 17.99 = 31.16

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. Thermo Fisher Scientific Inc. P/OP ratio increased from 2021 to 2022 and from 2022 to 2023.

Price to Sales (P/S)

Thermo Fisher Scientific Inc., historical P/S calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
No. shares of common stock outstanding1 381,312,268 385,430,077 391,191,770 393,793,362 398,828,389
Selected Financial Data (US$)
Revenues (in millions) 42,857 44,915 39,211 32,218 25,542
Sales per share2 112.39 116.53 100.23 81.81 64.04
Share price1, 3 560.49 550.95 540.17 451.47 309.16
Valuation Ratio
P/S ratio4 4.99 4.73 5.39 5.52 4.83
Benchmarks
P/S Ratio, Competitors5
AbbVie Inc. 5.72 4.61 4.53 4.05 4.22
Amgen Inc. 5.78 5.17 5.10 5.64 6.03
Bristol-Myers Squibb Co. 2.19 3.29 3.16 3.16 5.52
Danaher Corp. 7.76 5.79 6.37 7.01 6.29
Eli Lilly & Co. 20.77 10.96 8.01 8.06 6.03
Gilead Sciences Inc. 3.40 3.86 2.85 3.24 4.00
Johnson & Johnson 4.43 4.34 4.66 5.15 4.79
Merck & Co. Inc. 5.43 4.71 3.96 3.93 4.33
Moderna Inc. 5.52 2.92 3.45 309.64
Pfizer Inc. 2.66 2.37 3.18 4.50 3.66
Regeneron Pharmaceuticals Inc. 7.84 7.01 4.20 6.24 5.34
P/S Ratio, Sector
Pharmaceuticals, Biotechnology & Life Sciences 5.78 4.44 4.42 5.00 4.79
P/S Ratio, Industry
Health Care 2.30 2.15 2.28 2.25 2.13

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 Data adjusted for splits and stock dividends.

2 2023 Calculation
Sales per share = Revenues ÷ No. shares of common stock outstanding
= 42,857,000,000 ÷ 381,312,268 = 112.39

3 Closing price as at the filing date of Thermo Fisher Scientific Inc. Annual Report.

4 2023 Calculation
P/S ratio = Share price ÷ Sales per share
= 560.49 ÷ 112.39 = 4.99

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. Thermo Fisher Scientific Inc. P/S ratio decreased from 2021 to 2022 but then slightly increased from 2022 to 2023.

Price to Book Value (P/BV)

Thermo Fisher Scientific Inc., historical P/BV calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
No. shares of common stock outstanding1 381,312,268 385,430,077 391,191,770 393,793,362 398,828,389
Selected Financial Data (US$)
Total Thermo Fisher Scientific Inc. shareholders’ equity (in millions) 46,735 43,978 40,793 34,507 29,675
Book value per share (BVPS)2 122.56 114.10 104.28 87.63 74.41
Share price1, 3 560.49 550.95 540.17 451.47 309.16
Valuation Ratio
P/BV ratio4 4.57 4.83 5.18 5.15 4.16
Benchmarks
P/BV Ratio, Competitors5
AbbVie Inc. 29.97 15.52 16.53 14.18
Amgen Inc. 24.94 35.01 18.51 14.53 13.84
Bristol-Myers Squibb Co. 3.35 4.88 4.07 3.55 2.80
Danaher Corp. 3.47 3.64 4.16 3.93 3.72
Eli Lilly & Co. 65.80 29.36 25.28 35.07 51.67
Gilead Sciences Inc. 4.01 4.90 3.65 4.33 3.93
Johnson & Johnson 5.48 5.37 5.90 6.72 6.61
Merck & Co. Inc. 8.68 6.07 5.05 7.46 7.83
Moderna Inc. 2.66 2.81 4.31 24.16 8.21
Pfizer Inc. 1.75 2.48 3.35 2.98 3.00
Regeneron Pharmaceuticals Inc. 3.96 3.77 3.60 4.81 3.79
P/BV Ratio, Sector
Pharmaceuticals, Biotechnology & Life Sciences 6.66 5.54 5.66 6.13 5.74
P/BV Ratio, Industry
Health Care 5.13 4.66 4.78 4.66 4.41

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 Data adjusted for splits and stock dividends.

2 2023 Calculation
BVPS = Total Thermo Fisher Scientific Inc. shareholders’ equity ÷ No. shares of common stock outstanding
= 46,735,000,000 ÷ 381,312,268 = 122.56

3 Closing price as at the filing date of Thermo Fisher Scientific Inc. Annual Report.

4 2023 Calculation
P/BV ratio = Share price ÷ BVPS
= 560.49 ÷ 122.56 = 4.57

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company required rate of return and its actual rate of return. Thermo Fisher Scientific Inc. P/BV ratio decreased from 2021 to 2022 and from 2022 to 2023.