What’s Thermo Fisher Scientific’s Latest Valuation?



Valuation multiples

After the release of its 2Q16 earnings results on July 28, 2016, Thermo Fisher Scientific (TMO) was trading at a forward PE (price-to-earnings) multiple of 17.9x–18.5x. As of August 25, 2016, it was trading at a forward PE multiple of 18.1x, higher than Zimmer-Biomet Holdings (ZBH), but lower than Abbott Laboratories (ABT) and Agilent Technologies (A).

Those interested in investing in Thermo Fisher Scientific can consider the iShares Russell 1000 Value ETF (IWD). Thermo Fisher Scientific accounts for 0.31% of IWD’s total holdings.

The above graph compares the forward PE multiples of Thermo Fisher Scientific and its peers. The forward PE ratio, which is a measure of a company’s growth, is calculated by dividing its current stock price by the earnings estimate for the next year.

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Due to Thermo Fisher Scientific’s leading product portfolio and strong market position, healthy balance sheet, growing top line as well as bottom line, strategic acquisition synergies, and attractive product portfolio led by strong research and development investments, the company’s valuation has witnessed steady growth.

To learn more about the company’s recent growth drivers and fundamentals, you can read How Did Thermo Fisher Score So Many “Buy” Recommendations?

Thermo Fisher Scientific’s share price movement

Thermo Fisher Scientific’s stock was trading at $151.3 on August 24, 2016. It has a 50-day moving average of $155.7 and a 200-day moving average of $146.3. On August 1, 2016, Thermo Fisher Scientific was trading at a 52-week high of $160.7. The stock traded at a 52-week low of $117.1 on September 28, 2015.

The company’s share price has fallen by ~4.8% since the release of its 2Q16 earnings on July 28, 2016. Thermo Fisher Scientific’s stock has returned ~18.2% over the last 12 months, outperforming the market represented by the S&P 500 Index. Its year-to-date returns stand at ~5.9%, while the index has returned ~5.4% during the same period.


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