Latest Ratios: P/E Ratio 29.1x · EV/EBITDA 20.5x · ROE 13.1%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $192.0B | $218.5B | $199.2B | $205.9B | $217.0B | $264.9B | $185.8B | $130.9B | $90.9B | $75.6B | $56.1B |
| Enterprise Value | $223.0B | $249.5B | $228.0B | $234.3B | $244.5B | $296.7B | $198.1B | $147.0B | $107.7B | $95.2B | $71.9B |
| P/E Ratio → | 29.12 | 32.66 | 31.47 | 34.36 | 31.22 | 34.29 | 29.15 | 35.43 | 30.91 | 33.97 | 27.72 |
| P/S Ratio | 4.31 | 4.90 | 4.65 | 4.81 | 4.83 | 6.76 | 5.77 | 5.13 | 3.73 | 3.61 | 3.07 |
| P/B Ratio | 3.64 | 4.08 | 4.01 | 4.40 | 4.91 | 6.46 | 5.38 | 4.41 | 3.29 | 2.97 | 2.60 |
| P/FCF | 30.51 | 34.71 | 27.42 | 29.73 | 31.40 | 37.73 | 27.27 | 32.35 | 24.00 | 21.61 | 20.68 |
| P/OCF | 24.56 | 27.94 | 22.99 | 24.50 | 23.70 | 27.76 | 22.42 | 26.33 | 20.00 | 18.87 | 17.77 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 5.60 | 5.32 | 5.47 | 5.44 | 7.57 | 6.15 | 5.75 | 4.42 | 4.55 | 3.94 |
| EV / EBITDA | 20.48 | 22.91 | 21.17 | 21.59 | 20.54 | 22.99 | 19.38 | 22.49 | 17.55 | 17.97 | 15.58 |
| EV / EBIT | 27.50 | 28.72 | 26.23 | 30.08 | 28.56 | 31.65 | 25.45 | 30.97 | 27.42 | 31.52 | 28.84 |
| EV / FCF | — | 39.64 | 31.38 | 33.82 | 35.38 | 42.27 | 29.06 | 36.32 | 28.46 | 27.23 | 26.52 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 37.7% | 37.7% | 41.3% | 40.1% | 42.3% | 50.1% | 49.7% | 44.4% | 45.1% | 46.3% | 47.0% |
| Operating Margin | 18.2% | 18.2% | 17.9% | 17.4% | 19.0% | 26.3% | 24.5% | 16.7% | 15.9% | 15.6% | 15.6% |
| Net Profit Margin | 15.1% | 15.1% | 14.8% | 14.0% | 15.5% | 19.7% | 19.8% | 14.5% | 12.1% | 10.6% | 11.1% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 13.1% | 13.1% | 13.1% | 13.2% | 16.3% | 20.5% | 19.9% | 12.9% | 11.1% | 9.5% | 9.4% |
| ROA | 6.5% | 6.5% | 6.5% | 6.1% | 7.2% | 9.4% | 10.0% | 6.4% | 5.2% | 4.3% | 4.7% |
| ROIC | 7.5% | 7.5% | 7.5% | 7.6% | 8.8% | 12.9% | 12.8% | 7.1% | 6.5% | 5.9% | 6.1% |
| ROCE | 9.1% | 9.1% | 9.1% | 9.0% | 10.5% | 14.7% | 14.2% | 8.3% | 7.8% | 7.2% | 7.4% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.76 | 0.76 | 0.66 | 0.78 | 0.82 | 0.89 | 0.65 | 0.62 | 0.69 | 0.83 | 0.77 |
| Debt / EBITDA | 3.75 | 3.75 | 3.04 | 3.36 | 3.03 | 2.81 | 2.21 | 2.83 | 3.09 | 3.96 | 3.60 |
| Net Debt / Equity | — | 0.58 | 0.58 | 0.61 | 0.62 | 0.78 | 0.35 | 0.54 | 0.61 | 0.77 | 0.74 |
| Net Debt / EBITDA | 2.85 | 2.85 | 2.67 | 2.61 | 2.31 | 2.47 | 1.19 | 2.46 | 2.75 | 3.71 | 3.43 |
| Debt / FCF | — | 4.93 | 3.96 | 4.09 | 3.98 | 4.54 | 1.79 | 3.97 | 4.46 | 5.62 | 5.84 |
| Interest Coverage | 6.12 | 6.12 | 5.26 | 5.22 | 11.79 | 17.49 | 14.07 | 7.02 | 5.89 | 5.10 | 5.31 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.89 | 1.89 | 1.66 | 1.75 | 1.48 | 1.50 | 2.13 | 1.92 | 1.73 | 1.34 | 1.44 |
| Quick Ratio | 1.53 | 1.53 | 1.29 | 1.39 | 1.15 | 1.12 | 1.74 | 1.38 | 1.24 | 0.92 | 0.99 |
| Cash Ratio | 0.67 | 0.67 | 0.42 | 0.58 | 0.50 | 0.33 | 1.00 | 0.39 | 0.34 | 0.19 | 0.16 |
| Asset Turnover | — | 0.40 | 0.44 | 0.43 | 0.46 | 0.41 | 0.47 | 0.44 | 0.43 | 0.37 | 0.40 |
| Inventory Turnover | 5.12 | 5.12 | 5.05 | 5.04 | 4.60 | 3.88 | 4.02 | 4.21 | 4.45 | 3.78 | 4.38 |
| Days Sales Outstanding | — | 86.56 | 81.94 | 82.31 | 76.61 | 83.27 | 73.32 | 70.77 | 68.86 | 67.69 | 60.90 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 0.3% | 0.3% | 0.3% | 0.3% | 0.2% | 0.1% | 0.2% | 0.2% | 0.3% | 0.3% | 0.4% |
| Payout Ratio | 9.4% | 9.4% | 9.2% | 8.7% | 6.5% | 5.1% | 5.3% | 8.0% | 9.1% | 10.7% | 11.8% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.4% | 3.1% | 3.2% | 2.9% | 3.2% | 2.9% | 3.4% | 2.8% | 3.2% | 2.9% | 3.6% |
| FCF Yield | 3.3% | 2.9% | 3.6% | 3.4% | 3.2% | 2.7% | 3.7% | 3.1% | 4.2% | 4.6% | 4.8% |
| Buyback Yield | 1.6% | 1.4% | 2.0% | 1.5% | 1.4% | 0.8% | 0.8% | 1.1% | 0.6% | 1.0% | 2.2% |
| Total Shareholder Yield | 1.9% | 1.7% | 2.3% | 1.7% | 1.6% | 0.9% | 1.0% | 1.4% | 0.8% | 1.3% | 2.7% |
| Shares Outstanding | — | $377M | $383M | $388M | $394M | $397M | $399M | $403M | $406M | $398M | $397M |
Integration and funding volatility
According to current market data, TMO trades at a forward P/E of 20.64, which appears to price in a recovery trajectory that remains inconsistent with the company's recent 3.91% revenue growth, suggesting investors are paying a premium for the perceived stability of its integrated business model.
The valuation multiples, particularly the P/FCF of 30.30, indicate that the market is assigning a high value to the company's recurring revenue streams despite the recent volatility in cash flow margins. This pricing suggests that investors may be overlooking the risks associated with the company's reliance on external biotech funding and the potential for margin compression in its service-heavy segments.
Based on reported financial statements, TMO's ROIC has remained compressed between 1.6% and 2.2% over the last ten quarters, a trend that suggests the company's aggressive acquisition strategy is currently failing to generate returns that meaningfully exceed its cost of capital.
The persistent low ROIC, despite the company's scale, implies that the integration of large-scale acquisitions like PPD and Patheon has yet to yield the expected synergistic efficiency. Investors should monitor whether management can improve capital allocation efficiency or if the current strategy of inorganic growth will continue to dilute long-term shareholder value.
As reported in quarterly filings, TMO's cash conversion cycle has fluctuated significantly, reaching a high of 122 days in 2024Q3, which indicates that the company is struggling to optimize its working capital efficiency across its diverse and complex global distribution and service operations.
The variability in DSO and DIO suggests that the company's inventory management and collection processes are sensitive to shifts in customer demand and supply chain disruptions. This inefficiency in working capital management likely contributes to the observed volatility in free cash flow, warranting further investigation into the underlying operational processes.
Based on the provided balance sheet data, TMO maintains a D/E ratio of 0.83 as of 2026Q1, a level that appears manageable but reflects a persistent reliance on debt to fund the company's ongoing acquisition-led growth strategy within the competitive life sciences sector.
While the interest coverage ratio of 5.31 suggests that debt service remains comfortable, the company's leverage profile is inherently tied to its ability to integrate acquisitions successfully. Any sustained downturn in the biotech sector could limit the company's financial flexibility and increase the risk associated with its debt-funded expansion model.
Investors frequently misapply the P/E ratio to TMO, as it obscures the significant impact of non-cash amortization of intangible assets resulting from the company's aggressive M&A strategy, which often leads to a distorted view of the company's true underlying earning power and cash generation.
A more appropriate metric for evaluating this business model would be EV/EBITDA or P/FCF, as these ratios better account for the company's capital structure and the cash-generative nature of its recurring consumable revenue. Relying solely on P/E may lead to an inaccurate assessment of the company's valuation relative to its peers.
Includes 30+ ratios · 30 years · Updated daily
Wall Street verdict, signals, and target summaries.
DCF models, multiple analysis, and analyst estimates.
10-year return with dividends reinvested.
See how regular investing compounds over time.
Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying TMO stock.
Thermo Fisher Scientific Inc.'s current P/E ratio is 29.1x. The historical average is 27.0x. This places it at the 56th percentile of its historical range.
Thermo Fisher Scientific Inc.'s current EV/EBITDA is 20.5x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 16.9x.
Thermo Fisher Scientific Inc.'s return on equity (ROE) is 13.1%. The historical average is 9.1%.
Based on historical data, Thermo Fisher Scientific Inc. is trading at a P/E of 29.1x. This is at the 56th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Thermo Fisher Scientific Inc.'s current dividend yield is 0.33% with a payout ratio of 9.4%.
Thermo Fisher Scientific Inc. has 37.7% gross margin and 18.2% operating margin. Operating margin between 10-20% is typical for established companies.
Thermo Fisher Scientific Inc.'s Debt/EBITDA ratio is 3.8x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.