Latest Ratios: P/E Ratio 37.1x · EV/EBITDA 25.2x · 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 | $244.7B | $218.5B | $199.2B | $205.9B | $217.0B | $264.9B | $185.8B | $130.9B | $90.9B | $75.6B | $56.1B |
| Enterprise Value | $274.3B | $248.0B | $228.0B | $234.3B | $244.5B | $296.8B | $198.1B | $147.0B | $107.7B | $95.2B | $71.9B |
| P/E Ratio → | 37.12 | 32.66 | 31.47 | 34.36 | 31.22 | 34.29 | 29.15 | 35.43 | 30.91 | 33.97 | 27.72 |
| P/S Ratio | 5.49 | 4.90 | 4.65 | 4.81 | 4.83 | 6.76 | 5.77 | 5.13 | 3.73 | 3.61 | 3.07 |
| P/B Ratio | 4.64 | 4.08 | 4.01 | 4.40 | 4.91 | 6.46 | 5.38 | 4.41 | 3.29 | 2.97 | 2.60 |
| P/FCF | 38.89 | 34.71 | 27.42 | 29.73 | 31.40 | 37.73 | 27.27 | 32.35 | 24.00 | 21.61 | 20.68 |
| P/OCF | 31.30 | 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 | — | 5.57 | 5.32 | 5.47 | 5.44 | 7.57 | 6.15 | 5.75 | 4.42 | 4.55 | 3.94 |
| EV / EBITDA | 25.19 | 22.77 | 21.17 | 21.59 | 20.54 | 22.99 | 19.38 | 22.49 | 17.55 | 17.97 | 15.58 |
| EV / EBIT | 33.82 | 28.55 | 26.23 | 30.08 | 28.56 | 31.65 | 25.45 | 30.97 | 27.42 | 31.52 | 28.84 |
| EV / FCF | — | 39.41 | 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 | 0.74 | 0.74 | 0.66 | 0.78 | 0.82 | 0.89 | 0.65 | 0.62 | 0.69 | 0.83 | 0.77 |
| Debt / EBITDA | 3.62 | 3.62 | 3.04 | 3.36 | 3.03 | 2.81 | 2.21 | 2.83 | 3.09 | 3.96 | 3.60 |
| Net Debt / Equity | — | 0.55 | 0.58 | 0.61 | 0.62 | 0.78 | 0.35 | 0.54 | 0.61 | 0.77 | 0.74 |
| Net Debt / EBITDA | 2.71 | 2.71 | 2.67 | 2.61 | 2.31 | 2.47 | 1.20 | 2.46 | 2.75 | 3.71 | 3.43 |
| Debt / FCF | — | 4.69 | 3.96 | 4.09 | 3.99 | 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 | 2.7% | 3.1% | 3.2% | 2.9% | 3.2% | 2.9% | 3.4% | 2.8% | 3.2% | 2.9% | 3.6% |
| FCF Yield | 2.6% | 2.9% | 3.6% | 3.4% | 3.2% | 2.7% | 3.7% | 3.1% | 4.2% | 4.6% | 4.8% |
| Buyback Yield | 1.2% | 1.4% | 2.0% | 1.5% | 1.4% | 0.8% | 0.8% | 1.1% | 0.6% | 1.0% | 2.2% |
| Total Shareholder Yield | 1.5% | 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 |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying TMO stock.
Thermo Fisher Scientific Inc.'s current P/E ratio is 37.1x. The historical average is 27.0x. This places it at the 96th percentile of its historical range.
Thermo Fisher Scientific Inc.'s current EV/EBITDA is 25.2x. 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 37.1x. This is at the 96th 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 0.26% 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 3.6x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.
Key Metrics
Top Statement Risk
Goodwill impairment risk
Metrics are mathematically derived from official filings.
Premium Pricing for Rebound
TMO trades at 32.4x trailing earnings and 22.9x forward, per recent filings, a premium to Danaher's 38.7x but justified by accelerating growth and durable services mix.
The forward P/E of 22.9x implies the market expects earnings growth to normalize after the pandemic-driven volatility, with the PEG of 15.3 suggesting that at current levels, growth is not cheap. Relative to peers, TMO's EV/EBITDA of 22.3x sits between Danaher's 19.9x and Agilent's 23.0x, indicating the market is pricing in a balanced risk-reward. The valuation appears to reflect confidence in the company's strategic shift toward higher-margin services, but investors should monitor whether the growth premium is justified by sustained margin expansion.
Margin Mix Masks Underlying Strength
Gross margin improved to 41.2% in Q2 2026 from 37.3% a year earlier, as reported in financial statements, yet remains below Danaher's 60.9%, reflecting TMO's distribution-heavy model.
Operating margin of 17.4% in Q2 2026 is stable but below the 19.9% peak in Q4 2024, suggesting that the revenue rebound is not yet translating into proportional operating leverage. The gap between gross and operating margins indicates significant SG&A and R&D costs, which are necessary to support the integrated ecosystem. Net margin of 14.5% is respectable, but the recent EPS miss despite revenue growth suggests that margin pressure from mix shift toward services may persist, warranting close monitoring of segment profitability.
Returns Stuck in Single Digits
ROIC has hovered around 1.7-2.2% over the past ten quarters, according to reported figures, far below peers like Waters at 20.3%, indicating capital deployment is not yet generating outsized returns.
The low ROIC is partly a function of the massive goodwill base from acquisitions, which inflates invested capital without contributing to operating income. ROE of 3.3% in Q2 2026 is similarly subdued, though it has been stable, suggesting that the company is not compounding returns at an accelerating pace. The recent acquisition of PPD and other assets may eventually improve returns, but the current data suggests that the market's premium valuation is based on future potential rather than current capital efficiency.
Working Capital Drag Persists
Cash conversion cycle extended to 106 days in Q2 2026 from 112 days a year earlier, as per balance sheet data, with DSO at 77 days and DIO at 72 days, indicating ongoing inefficiencies.
The CCC has been volatile, ranging from 106 to 122 days over the past ten quarters, reflecting the lumpy nature of large instrument sales and service contracts. DSO of 77 days is elevated compared to peers, suggesting that TMO may be offering extended payment terms to customers, which ties up cash. DPO of 43 days is relatively low, indicating that the company is not leveraging supplier financing as aggressively as it could, which may be a deliberate choice to maintain supplier relationships but also pressures working capital.
Debt Load Grows with M&A Appetite
Debt-to-equity rose to 0.81 in Q2 2026 from 0.78 a year earlier, according to balance sheet data, while D/EBITDA climbed to 16.5x, signaling increased leverage from acquisition financing.
The D/EBITDA of 16.5x is exceptionally high, though this may be distorted by the denominator's calculation; interest coverage of 5.2x indicates that debt service remains manageable for now. The company's aggressive M&A strategy, evidenced by $8.9B in acquisitions in Q1 2026, has pushed leverage higher, but the stable interest coverage suggests that earnings are sufficient to cover interest expenses. Investors should monitor whether the pace of acquisitions continues and whether the company can deleverage through cash flow, as the current trajectory may limit financial flexibility.
Liquidity Buffer Thins
Current ratio improved to 1.55 in Q2 2026 from 1.70 a year earlier, as per balance sheet data, while cash dropped to $4.1B, indicating a tighter liquidity position.
The quick ratio of 1.18 suggests that the company can cover short-term obligations without relying on inventory sales, but the declining cash balance and rising debt levels point to reduced financial flexibility. The current ratio remains above 1.5, which is adequate, but the trend is concerning given the company's heavy M&A activity. Under a severe stress scenario, such as a prolonged downturn in biotech funding, the company may need to rely on credit lines or asset sales, which could be challenging given the goodwill-heavy balance sheet.
Misapplied ROIC Metric
ROIC is commonly misapplied to TMO because it penalizes the company for acquisition-related goodwill, obscuring the true cash returns of its operating businesses, as seen in the 1.7% reported figure.
The standard ROIC calculation includes goodwill and intangibles in invested capital, which for TMO is inflated by decades of acquisitions, making the metric appear artificially low. A more appropriate measure would be to exclude goodwill or use a cash-based ROIC that focuses on operating cash flow relative to tangible capital employed. Based on reported figures, the company's operating cash flow of $19.9B over five quarters versus net income of $16.5B suggests that cash generation is strong, but the ROIC metric fails to capture this. Investors should adjust for goodwill to assess the true efficiency of capital deployment.