Thermo Fisher Scientific provides analytical instruments, equipment, reagents and consumables, software, and services for research, manufacturing, analysis, discovery, and diagnostics worldwide. The company was founded in 1956 and is based in Waltham, Massachusetts.
TMO Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for TMO, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Thermo Fisher Scientific Inc ranked in the 28th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 57.17%. As for the metrics that stood out in our discounted cash flow analysis of Thermo Fisher Scientific Inc, consider:
Interest coverage, a measure of earnings relative to interest payments, is 6.09; that's higher than 57.7% of US stocks in the Healthcare sector that have positive free cash flow.
88% of the company's capital comes from equity, which is greater than 74.78% of stocks in our cash flow based forecasting set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
BHC, CMD, ENTA, WAT, and ABT can be thought of as valuation peers to TMO, in the sense that they are in the Healthcare sector and have a similar price forecast based on DCF valuation.
The coronavirus pandemic has boosted Qiagen's prospects and a takeover by Thermo Fisher no longer makes sense unless the offer is increased substantially, one of the German genetic test maker's top ten shareholders told Reuters on Friday. Thermo Fisher agreed in early March to buy Qiagen for $11.5 billion as the U.S.-based company looks to bolster its health diagnostic business. Qiagen has seen high demand for products related to coronavirus testing and began shipping a rapid diagnostic test for COVID-19 to the United States at the end of March.
We at Insider Monkey have gone over 821 13F filings that hedge funds and prominent investors are required to file by the SEC The 13F filings show the funds' and investors' portfolio positions as of March 31st, near the height of the coronavirus market crash. We are almost done with the second quarter. Investors decided […]