Using the industry peer median P/E multiple (trailing + forward), Thermo Fisher Scientific Inc. (TMO) has a fair value of $453.13 based on 8 comparable companies in the Medical - Diagnostics & Research industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Thermo Fisher Scientific Inc.TMO | 185,544 | 27.7x | 20.0x |
| Merck & Co., Inc.MRK | 294,783 | 16.4x | 23.3x |
| Amgen Inc.AMGN | 190,369 | 24.8x | 15.8x |
| Abbott LaboratoriesABT | 182,961 | 28.3x | 18.6x |
| Intuitive Surgical, Inc.ISRG | 167,426 | 59.9x | 46.9x |
| Novo Nordisk A/SNVO | 161,919 | 10.9x | 12.1x |
| Danaher CorporationDHR | 133,264 | 37.4x | 22.4x |
| Agilent Technologies, Inc.A | 32,180 | 24.9x | 19.1x |
| IQVIA Holdings Inc.IQV | 28,849 | 21.7x | 13.4x |
| Industry Median | 24.9x | 18.8x | |
| (*) Profit after tax | 6,737 | 9,261 | |
| Equity Value | 167,458 | 174,205 | |
| (/) Outstanding shares | 377 | 377 | |
| Fair Price | $444 | $462 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.