Stock Analysis on Net

Thermo Fisher Scientific Inc. (NYSE:TMO)

Enterprise Value to EBITDA (EV/EBITDA) 

Microsoft Excel

Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)

Thermo Fisher Scientific Inc., EBITDA calculation

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Net income attributable to Thermo Fisher Scientific Inc. 5,995 6,950 7,725 6,375 3,696
Add: Net income attributable to noncontrolling interest (40) 10 3 2 2
Add: Income tax expense 284 703 1,109 850 374
Earnings before tax (EBT) 6,239 7,663 8,837 7,227 4,072
Add: Interest expense 1,375 726 536 553 676
Earnings before interest and tax (EBIT) 7,614 8,389 9,373 7,780 4,748
Add: Depreciation of property, plant and equipment 1,068 986 831 658 564
Add: Amortization of acquisition-related intangible assets 2,338 2,395 1,761 1,667 1,713
Earnings before interest, tax, depreciation and amortization (EBITDA) 11,020 11,770 11,965 10,105 7,025

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Item Description The company
EBITDA To calculate EBITDA analysts start with net earnings. To that earnings number, interest, taxes, depreciation, and amortization are added. EBITDA as a pre-interest number is a flow to all providers of capital. Thermo Fisher Scientific Inc. EBITDA decreased from 2021 to 2022 and from 2022 to 2023.

Enterprise Value to EBITDA Ratio, Current

Thermo Fisher Scientific Inc., current EV/EBITDA calculation, comparison to benchmarks

Microsoft Excel
Selected Financial Data (US$ in millions)
Enterprise value (EV) 248,009
Earnings before interest, tax, depreciation and amortization (EBITDA) 11,020
Valuation Ratio
EV/EBITDA 22.51
Benchmarks
EV/EBITDA, Competitors1
AbbVie Inc. 21.08
Amgen Inc. 13.43
Bristol-Myers Squibb Co. 6.81
Eli Lilly & Co. 87.19
Gilead Sciences Inc. 10.38
Johnson & Johnson 16.47
Merck & Co. Inc. 48.59
Pfizer Inc. 22.60
Regeneron Pharmaceuticals Inc. 20.71
Vertex Pharmaceuticals Inc. 20.73
EV/EBITDA, Sector
Pharmaceuticals, Biotechnology & Life Sciences 22.41
EV/EBITDA, Industry
Health Care 18.74

Based on: 10-K (reporting date: 2023-12-31).

1 Click competitor name to see calculations.

If the company EV/EBITDA is lower then the EV/EBITDA of benchmark then company is relatively undervalued.
Otherwise, if the company EV/EBITDA is higher then the EV/EBITDA of benchmark then company is relatively overvalued.


Enterprise Value to EBITDA Ratio, Historical

Thermo Fisher Scientific Inc., historical EV/EBITDA calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 240,551 238,371 241,765 189,206 138,655
Earnings before interest, tax, depreciation and amortization (EBITDA)2 11,020 11,770 11,965 10,105 7,025
Valuation Ratio
EV/EBITDA3 21.83 20.25 20.21 18.72 19.74
Benchmarks
EV/EBITDA, Competitors4
AbbVie Inc. 20.79 13.31 13.44 21.34 13.68
Amgen Inc. 14.13 12.97 13.22 12.24 12.26
Bristol-Myers Squibb Co. 6.51 9.46 8.65 34.35 23.84
Eli Lilly & Co. 85.33 37.74 29.85 23.67 21.40
Gilead Sciences Inc. 10.41 13.89 8.57 24.90 11.77
Johnson & Johnson 16.45 14.78 14.47 18.20 16.28
Merck & Co. Inc. 51.30 13.91 12.18 16.05 13.66
Pfizer Inc. 22.50 6.12 8.64 15.78 9.17
Regeneron Pharmaceuticals Inc. 20.16 15.27 6.68 12.70 14.80
Vertex Pharmaceuticals Inc. 21.57 14.91 18.92 14.81 37.82
EV/EBITDA, Sector
Pharmaceuticals, Biotechnology & Life Sciences 22.37 13.30 12.71 18.44 14.72
EV/EBITDA, Industry
Health Care 18.75 13.67 13.83 16.25 14.26

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 See details »

2 See details »

3 2023 Calculation
EV/EBITDA = EV ÷ EBITDA
= 240,551 ÷ 11,020 = 21.83

4 Click competitor name to see calculations.

Valuation ratio Description The company
EV/EBITDA Enterprise value to earnings before interest, tax, depreciation and amortization is a valuation indicator for the overall company rather than common stock. Thermo Fisher Scientific Inc. EV/EBITDA ratio increased from 2021 to 2022 and from 2022 to 2023.