Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Thermo Fisher Scientific Inc. (NYSE:TMO)

Enterprise Value to FCFF (EV/FCFF)

Intermediate level

Free Cash Flow to The Firm (FCFF)

Thermo Fisher Scientific Inc., FCFF calculation

US$ in millions

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12 months ended: Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Net income 3,696  2,938  2,225  2,022  1,975 
Net noncash charges 1,942  2,175  1,287  1,363  1,287 
Changes in assets and liabilities, excluding the effects of acquisitions and dispositions (665) (570) 494  (227) (437)
Net cash provided by operating activities 4,973  4,543  4,006  3,158  2,826 
Cash paid for interest, net of tax1 717  619  489  298  284 
Purchase of property, plant and equipment (926) (758) (508) (444) (423)
Proceeds from sale of property, plant and equipment 36  50  7  26  18 
Free cash flow to the firm (FCFF) 4,800  4,454  3,994  3,038  2,705 

Based on: 10-K (filing date: 2020-02-26), 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-28), 10-K (filing date: 2017-02-28), 10-K (filing date: 2016-02-25).

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Item Description The company
FCFF Free cash flow to the firm is the cash flow available to the Thermo Fisher Scientific Inc.’s suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made. Thermo Fisher Scientific Inc.’s FCFF increased from 2017 to 2018 and from 2018 to 2019.

Interest Paid, Net of Tax

Thermo Fisher Scientific Inc., interest paid, net of tax calculation

US$ in millions

Microsoft Excel LibreOffice Calc
12 months ended: Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Effective Income Tax Rate (EITR)
EITR1 9.19% 9.93% 8.28% 35.00% 35.00%
Interest Paid, Net of Tax
Cash paid for interest, before tax 790  687  533  458  438 
Less: Cash paid for interest, tax2 73  68  44  160  153 
Cash paid for interest, net of tax 717  619  489  298  284 

Based on: 10-K (filing date: 2020-02-26), 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-28), 10-K (filing date: 2017-02-28), 10-K (filing date: 2016-02-25).

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2 2019 Calculation
Cash paid for interest, tax = Cash paid for interest × EITR
= 790 × 9.19% = 73

Enterprise Value to FCFF Ratio, Current

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

Microsoft Excel LibreOffice Calc
Selected Financial Data (US$ in millions)
Enterprise value (EV) 216,624 
Free cash flow to the firm (FCFF) 4,800 
Valuation Ratio
EV/FCFF 45.13
Benchmarks
EV/FCFF, Competitors1
Becton, Dickinson & Co. 27.89
Boston Scientific Corp. 35.85
Danaher Corp. 54.20
Edwards Lifesciences Corp. 57.69
Intuitive Surgical Inc. 74.43
Medtronic PLC 26.21
Stryker Corp. 53.85
UnitedHealth Group Inc. 20.07
EV/FCFF, Sector
Health Care Equipment & Services 31.52
EV/FCFF, Industry
Health Care 25.45

Based on: 10-K (filing date: 2020-02-26).

1 Click competitor name to see calculations.

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

Enterprise Value to FCFF Ratio, Historical

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

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 138,655  120,285  103,477  77,399  63,815 
Free cash flow to the firm (FCFF)2 4,800  4,454  3,994  3,038  2,705 
Valuation Ratio
EV/FCFF3 28.88 27.01 25.91 25.48 23.59
Benchmarks
EV/FCFF, Competitors4
Becton, Dickinson & Co. 30.47 33.39 26.24 20.34 29.53
Boston Scientific Corp. 37.72 289.12 33.59 49.80 62.84
Danaher Corp. 37.11 25.21 25.94 26.16 21.88
Edwards Lifesciences Corp. 51.46 51.20 33.02 37.28 39.13
Intuitive Surgical Inc. 54.58 57.79 47.07 25.06 26.92
Medtronic PLC 22.07 27.88 21.24 26.12 26.23
Stryker Corp. 49.54 32.56 50.00 33.54 50.24
UnitedHealth Group Inc. 17.68 18.83 19.24 19.74 14.59
EV/FCFF, Sector
Health Care Equipment & Services 25.84 27.48 24.49 24.68 —
EV/FCFF, Industry
Health Care 21.65 20.30 20.49 18.93 —

Based on: 10-K (filing date: 2020-02-26), 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-28), 10-K (filing date: 2017-02-28), 10-K (filing date: 2016-02-25).

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3 2019 Calculation
EV/FCFF = EV ÷ FCFF
= 138,655 ÷ 4,800 = 28.88

4 Click competitor name to see calculations.

Valuation ratio Description The company
EV/FCFF Enterprise value to free cash flow to the firm is whole company valuation indicator. Thermo Fisher Scientific Inc.’s EV/FCFF ratio increased from 2017 to 2018 and from 2018 to 2019.