Thermo Fisher Scientific’s valuation

Thermo Fisher Scientific (TMO) provides equipment, software, analytical instruments, reagents, consumables, and services. Thermo Fisher reported non-GAAP EPS of $2.75 on revenues of ~$6.1 billion, a 21.8% increase as compared to ~$5.0 billion during the second quarter of 2017. The below chart compares revenues and EPS for Thermo Fisher Scientific since the first quarter of 2017.

How Thermo Fisher Scientific’s Valuation Looks in September

Forward PE

Thermo Fisher Scientific currently trades at a forward PE multiple of ~19.9x, which is lower than the industry’s average of ~23.9x as of September 12, 2018. Medtronic (MDT), Becton Dickinson (BDX), and Agilent Technologies (A), some of its competitors, are trading at forward PE multiples of 18.1x, 20.1x, and 22.9x, respectively, as compared to Thermo Fisher Scientific.

Forward EV-to-EBITDA

Thermo Fisher Scientific currently trades at a forward EV-to-EBITDA multiple of ~17.4x, which is higher than the industry’s average of ~16.4x as of September 12. Medtronic (MDT), Becton Dickinson (BDX), and Agilent Technologies (A) are trading at forward EV-to-EBITDA multiples of 14.4x, 14.5x, and 16.1x, respectively, as compared to Thermo Fisher Scientific.

Forward EV-to-revenues

Thermo Fisher Scientific currently trades at a forward EV-to-revenues multiple of ~4.6x, which is lower than the industry’s average of ~5.0x as of September 12. Medtronic (MDT), Becton Dickinson (BDX), and Agilent Technologies (A) are trading at forward EV-to-revenues multiples of 4.6x, 5.0x, and 4.1x, respectively, as compared to Thermo Fisher Scientific.

The iShares US Medical Devices ETF (IHI) holds 7.1% of its total holdings in Thermo Fisher (TMO), 8.8% in Medtronic (MDT), and 5.8% in Becton Dickinson (BDX).

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