Enterprise Value to FCFF (EV/FCFF)
Paying user area
Try for free
Thermo Fisher Scientific Inc. pages available for free this week:
- Income Statement
- Statement of Comprehensive Income
- Balance Sheet: Assets
- Common-Size Balance Sheet: Assets
- Analysis of Profitability Ratios
- Net Profit Margin since 2005
- Return on Assets (ROA) since 2005
- Current Ratio since 2005
- Price to Operating Profit (P/OP) since 2005
- Price to Book Value (P/BV) since 2005
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to Thermo Fisher Scientific Inc. for $24.99.
This is a one-time payment. There is no automatic renewal.
We accept:
Free Cash Flow to The Firm (FCFF)
Thermo Fisher Scientific Inc., FCFF calculation
US$ in millions
Based on: 10-K (reporting date: 2024-12-31), 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).
- Net Cash Provided by Operating Activities
- The net cash provided by operating activities showed an overall increasing trend from 2020 to 2021, rising from $8,289 million to $9,312 million. However, in 2022, this figure experienced a slight decline to $9,154 million, followed by a more noticeable dip in 2023 to $8,406 million. The value then recovered somewhat in 2024, increasing to $8,667 million, but it did not return to the peak level observed in 2021.
- Free Cash Flow to the Firm (FCFF)
- The Free Cash Flow to the Firm displayed a consistent upward trajectory across the observed period. Starting at $7,239 million in 2020, it saw steady annual increases, culminating in $8,747 million by 2024. This indicates improving liquidity available after capital expenditures, reflecting effective cash flow management and potentially expanding operational efficiency despite fluctuations in net operating cash flows.
- Comparative Insights
- While net cash from operating activities exhibited some volatility and a slight downward trend after 2021, free cash flow to the firm consistently increased, suggesting that capital expenditure may have been controlled or optimized effectively in recent years. The divergence between these two measures highlights potentially strategic financial management to bolster cash available to stakeholders.
Interest Paid, Net of Tax
Thermo Fisher Scientific Inc., interest paid, net of tax calculation
US$ in millions
Based on: 10-K (reporting date: 2024-12-31), 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).
2 2024 Calculation
Cash paid for interest, tax = Cash paid for interest × EITR
= × =
- Effective Income Tax Rate (EITR) Trend
- The effective income tax rate exhibited a fluctuating downward trend from 11.76% in 2020 to a low of 4.51% in 2023, followed by an increase to 9.34% in 2024. This pattern indicates a significant reduction in tax rate obligations over the initial four-year period, with a partial recovery towards the end of the observed timeline.
- Cash Paid for Interest, Net of Tax
- Cash payments for interest, net of tax, demonstrated a consistent and substantial increase throughout the reviewed years. The amount rose from $416 million in 2020 to $1,423 million in 2024, representing more than a threefold increase over five years. Notably, the increase between 2022 and 2023 was particularly pronounced, more than doubling from $607 million to $1,323 million, before continuing to rise moderately in 2024.
- Overall Insight
- The combination of a decreasing effective income tax rate through 2023 alongside a marked rise in interest expenses suggests changes in the financial structure or increased leverage during this period. The spike in interest payments could imply higher debt levels or refinancing at higher rates, which, coupled with fluctuating tax rates, may impact net profitability and cash flow dynamics.
Enterprise Value to FCFF Ratio, Current
Thermo Fisher Scientific Inc., current EV/FCFF calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | |
| Free cash flow to the firm (FCFF) | |
| Valuation Ratio | |
| EV/FCFF | |
| Benchmarks | |
| EV/FCFF, Competitors1 | |
| AbbVie Inc. | |
| Amgen Inc. | |
| Bristol-Myers Squibb Co. | |
| Danaher Corp. | |
| Eli Lilly & Co. | |
| Gilead Sciences Inc. | |
| Johnson & Johnson | |
| Merck & Co. Inc. | |
| Pfizer Inc. | |
| Regeneron Pharmaceuticals Inc. | |
| Vertex Pharmaceuticals Inc. | |
| EV/FCFF, Sector | |
| Pharmaceuticals, Biotechnology & Life Sciences | |
| EV/FCFF, Industry | |
| Health Care | |
Based on: 10-K (reporting date: 2024-12-31).
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
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Enterprise value (EV)1 | ||||||
| Free cash flow to the firm (FCFF)2 | ||||||
| Valuation Ratio | ||||||
| EV/FCFF3 | ||||||
| Benchmarks | ||||||
| EV/FCFF, Competitors4 | ||||||
| AbbVie Inc. | ||||||
| Amgen Inc. | ||||||
| Bristol-Myers Squibb Co. | ||||||
| Danaher Corp. | ||||||
| Eli Lilly & Co. | ||||||
| Gilead Sciences Inc. | ||||||
| Johnson & Johnson | ||||||
| Merck & Co. Inc. | ||||||
| Pfizer Inc. | ||||||
| Regeneron Pharmaceuticals Inc. | ||||||
| Vertex Pharmaceuticals Inc. | ||||||
| EV/FCFF, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | ||||||
| EV/FCFF, Industry | ||||||
| Health Care | ||||||
Based on: 10-K (reporting date: 2024-12-31), 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).
3 2024 Calculation
EV/FCFF = EV ÷ FCFF
= ÷ =
4 Click competitor name to see calculations.
- Enterprise Value (EV)
- The enterprise value exhibited a rising trend from 2020 to 2021, increasing significantly from approximately 189.2 billion USD to 241.8 billion USD. Following this peak, the EV remained relatively stable with a slight decline in 2022 and 2023 to around 238.4 billion USD and 240.5 billion USD respectively, before decreasing further to approximately 228.6 billion USD by the end of 2024. This pattern indicates an initial period of growth in market valuation, followed by stabilization and a moderate reduction in enterprise value toward the most recent year.
- Free Cash Flow to the Firm (FCFF)
- The free cash flow to the firm increased steadily over the five-year period. Starting at roughly 7.2 billion USD in 2020, it rose incrementally each year to reach 8.7 billion USD in 2024. This consistent upward trajectory suggests improving operational cash generation and potentially stronger internal financing capacity.
- EV/FCFF Ratio
- The EV/FCFF ratio, a measure of valuation relative to cash flow, experienced an upward movement from 26.14 in 2020 to a peak of 33.14 in 2021. Subsequently, the ratio declined steadily to 31.61 in 2022, 28.85 in 2023, and further down to 26.13 in 2024, almost returning to its initial level. This trend implies that while the enterprise value initially grew faster than the free cash flow, valuation multiples have contracted in the later years, possibly reflecting market adjustments or changing investor perceptions about growth prospects or risk.
- Overall Insights
- The data indicates that the company experienced a peak valuation in 2021, followed by a period of relative valuation normalization through 2024. Despite the slight reduction in enterprise value in recent years, the company’s ability to generate free cash flow improved consistently, which may signal increasing operational efficiency or revenue quality. The decreasing EV/FCFF ratio towards the end of the period could indicate undervaluation or more conservative market expectations.