Thermo Fisher Scientific Inc. (TMO) Stock Valuation — PE Analysis
Medical - Diagnostics & Research · NYSE
Current Price
$469.34
PE Ratio (TTM)
25.5x
Intrinsic Value
$569.43
+17.6% margin of safety
COMPETITIVE MOAT
↑Dominant Brand and Scale
Thermo Fisher's extensive portfolio and global reach create significant barriers to entry. Its 'serving science' mission fosters deep customer loyalty across diverse research and diagnostic sectors.
↑Technological Leadership
Continuous innovation, exemplified by the Orbitrap platform, solidifies its position. This advanced technology drives adoption and creates switching costs for customers reliant on its performance.
↑Integrated Solutions Provider
Offering a comprehensive suite of instruments, consumables, and services simplifies workflows for clients. This end-to-end approach fosters stickiness and makes it difficult for competitors to replicate.
INVESTMENT RISKS
↓Intense Competition
The diagnostics and research market is highly competitive. New entrants and established players constantly vie for market share, potentially pressuring margins.
↓Regulatory Scrutiny
As a major player in healthcare, Thermo Fisher faces stringent regulatory oversight. Changes in regulations or compliance issues could impact operations and profitability.
↓Supply Chain Vulnerabilities
Reliance on global supply chains for raw materials and components can expose the company to disruptions. Geopolitical events or natural disasters could impact production and delivery.
Base case
TMO base case PE valuation
A base case PE valuation for TMO estimates a fair value of about $569.43 per share, against a current price of $469.34. The model assumes 10.7% annual earnings growth, a 25x target PE multiple, and a 10% discount rate.
Intrinsic Value
$569.43
Margin of safety
+17.6%
Expected annual return
+3.9%
Base case assumptions: 10.7% annual earnings growth, 25x target PE, 10% discount rate, 5 year projection. Data as of 2026-06-12.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the TMO PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Thermo Fisher Scientific Inc. respond.
Open PE Calculator for TMOCompany Overview
Thermo Fisher Scientific Inc. is a global leader in scientific services, providing a comprehensive range of offerings that include life sciences solutions, advanced analytical instruments, specialized diagnostic products, and an extensive portfolio of laboratory supplies and biopharmaceutical services. The company's reach extends across North America, Europe, Asia-Pacific, and other international markets. Its Life Sciences Solutions division furnishes researchers with essential reagents, state-of-the-art instruments, and consumables vital for biological and medical exploration, the development and manufacturing of therapeutics and vaccines, and the detection of infections and various diseases. This segment encompasses bioscience, genetic science, and bioproduction technologies, serving a broad spectrum of clients in the pharmaceutical, biotechnology, agricultural, clinical, healthcare, academic, and governmental sectors. The Analytical Instruments segment delivers a variety of precision instruments, consumables, software, and support services to pharmaceutical, biotechnology, academic, governmental, environmental, and industrial research environments, as well as clinical laboratories. The Specialty Diagnostics segment offers an array of diagnostic tools, including liquid, ready-to-use, and lyophilized immunodiagnostic reagent kits, alongside calibrators, controls, protein detection assays, and accompanying instruments. This also features the creation and distribution of complete blood test systems to aid in the clinical diagnosis and monitoring of allergies, asthma, and autoimmune diseases. Furthermore, it provides dehydrated and prepared culture media, specimen collection and transport systems, related instrumentation and consumables, human leukocyte antigen (HLA) typing and testing crucial for the organ transplant sector, and other healthcare products. Lastly, the Laboratory Products and Biopharma Services segment supplies laboratory equipment, serves the research and safety markets through its channels, and offers extensive pharmaceutical services, encompassing clinical research support. The company's products and services are distributed through a dedicated direct sales team, customer service professionals, online commerce platforms, and a network of third-party distributors. Its recognized brands include Thermo Scientific, Applied Biosystems, Invitrogen, Fisher Scientific, Unity Lab Services, Patheon, and PPD. Thermo Fisher Scientific Inc. was established in 1956 and is headquartered in Waltham, Massachusetts.
Financial Metrics — TMO PE Stock Valuation Data
PE Ratio (TTM)
25.5x
PEG Ratio
3.89
Earnings Yield
3.93%
ROE (TTM)
13.3%
Revenue/Share (TTM)
$121.50
Dividend Yield
0.38%
Debt/Equity
0.83x
Frequently Asked Questions
What is the PE ratio of TMO?
The trailing twelve-month PE ratio of TMO reflects how much investors pay per dollar of Thermo Fisher Scientific Inc.'s earnings. This metric is most useful when compared to Medical - Diagnostics & Research peers and the company's own historical range.
Is TMO overvalued based on PE ratio?
TMO's PE of 25.5x combined with a PEG ratio of 3.89 provides a growth-adjusted perspective. A PEG above 2.0 suggests TMO may be richly valued even accounting for growth. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Medical - Diagnostics & Research, a DCF analysis may be more appropriate.
How do I value TMO stock using PE ratio?
To value Thermo Fisher Scientific Inc. using PE: (1) Compare the current PE (25.5x) against the Medical - Diagnostics & Research median to assess relative pricing, (2) check the PEG ratio (3.89) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of TMO?
TMO's PEG ratio is 3.89, calculated by dividing the PE ratio (25.5x) by the expected earnings growth rate. A PEG above 2.0 often signals the stock is priced aggressively relative to its growth trajectory. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for TMO stock valuation?
PE ratio gives a quick relative read — how TMO is priced versus Medical - Diagnostics & Research peers. DCF provides an absolute value based on projected free cash flows. For the most reliable valuation, use PE as a quick comparability screen and DCF for a deeper fundamental analysis. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See TMO DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Healthcare valuationsP/E and DCF value TMO with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.