Price to FCFE (P/FCFE)

Free Cash Flow to Equity (FCFE)
P to FCFE Ratio, Current
P to FCFE Ratio, Historical

Free Cash Flow to Equity (FCFE)

Thermo Fisher Scientific Inc., FCFE calculation

US$ in millions

12 months ended:	Dec 31, 2025	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
Net income attributable to Thermo Fisher Scientific Inc.	6,704)	6,335)	5,995)	6,950)	7,725)
Net (income) losses attributable to noncontrolling interests and redeemable noncontrolling interest	17)	3)	(40)	10)	3)
Net noncash charges	2,905)	2,708)	2,988)	3,243)	3,132)
Changes in assets and liabilities, excluding the effects of acquisitions	(1,808)	(379)	(537)	(1,049)	(1,548)
Net cash provided by operating activities	7,818)	8,667)	8,406)	9,154)	9,312)
Purchase of property, plant and equipment	(1,525)	(1,400)	(1,479)	(2,243)	(2,523)
Proceeds from sale of property, plant and equipment	44)	57)	87)	24)	20)
Net proceeds from issuance of debt	7,759)	1,204)	5,942)	3,193)	18,137)
Repayment of debt	(2,412)	(3,607)	(5,782)	(375)	(11,738)
Proceeds from issuance of commercial paper	1,095)	—)	1,620)	1,526)	2,512)
Repayments of commercial paper	(1,095)	—)	(1,935)	(3,690)	—)
Free cash flow to equity (FCFE)	11,684)	4,921)	6,859)	7,589)	15,720)

Based on: 10-K (reporting date: 2025-12-31), 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).

The financial information reveals fluctuating trends in both net cash provided by operating activities and free cash flow to equity (FCFE) over the five-year period. Operating cash flow demonstrates a general decline, while FCFE exhibits more pronounced volatility.

Net Cash from Operations: Net cash provided by operating activities decreased from US$9,312 million in 2021 to US$9,154 million in 2022, representing a slight reduction. A more substantial decrease was observed in 2023, falling to US$8,406 million. This was partially offset by an increase to US$8,667 million in 2024, but subsequently declined again to US$7,818 million in 2025. Overall, a downward trend in operating cash flow is apparent.
Free Cash Flow to Equity (FCFE): FCFE experienced significant volatility during the observed period. It began at US$15,720 million in 2021, then decreased dramatically to US$7,589 million in 2022. This downward trend continued in 2023, reaching US$6,859 million, and further declined to US$4,921 million in 2024. However, a substantial increase occurred in 2025, with FCFE rising to US$11,684 million. This represents a significant recovery from the prior year’s value, but remains below the 2021 level.

The divergence between operating cash flow and FCFE suggests that factors beyond core operations, such as financing activities or non-cash charges, are significantly impacting FCFE. The large increase in FCFE in 2025, despite the continued decline in operating cash flow, warrants further investigation to understand the underlying drivers of this change.

Relationship between Operating Cash Flow and FCFE: The correlation between net cash from operations and FCFE is not consistently strong. While both generally trended downward from 2021 to 2024, the substantial increase in FCFE in 2025 occurred alongside a further decrease in operating cash flow. This indicates that other components of the FCFE calculation, such as share repurchases, debt issuance/repayment, or changes in non-controlling interests, played a crucial role in the 2025 outcome.

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Price to FCFE Ratio, Current

Thermo Fisher Scientific Inc., current P/FCFE calculation, comparison to benchmarks

No. shares of common stock outstanding	371,484,244
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)	11,684)
FCFE per share	31.45
Current share price (P)	474.39
Valuation Ratio
P/FCFE	15.08
Benchmarks
P/FCFE, Competitors¹
AbbVie Inc.	20.73
Amgen Inc.	77.57
Bristol-Myers Squibb Co.	15.26
Danaher Corp.	21.13
Eli Lilly & Co.	50.25
Gilead Sciences Inc.	22.21
Johnson & Johnson	19.34
Merck & Co. Inc.	11.89
Pfizer Inc.	17.04
Regeneron Pharmaceuticals Inc.	20.58
Vertex Pharmaceuticals Inc.	36.17
P/FCFE, Sector
Pharmaceuticals, Biotechnology & Life Sciences	22.96
P/FCFE, Industry
Health Care	22.66

Based on: 10-K (reporting date: 2025-12-31).

¹ Click competitor name to see calculations.

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

Price to FCFE Ratio, Historical

Thermo Fisher Scientific Inc., historical P/FCFE calculation, comparison to benchmarks

	Dec 31, 2025	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
No. shares of common stock outstanding¹	371,484,244	377,261,182	381,312,268	385,430,077	391,191,770
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)²	11,684)	4,921)	6,859)	7,589)	15,720)
FCFE per share³	31.45	13.04	17.99	19.69	40.18
Share price^1, 4	520.12	537.83	560.49	550.95	540.17
Valuation Ratio
P/FCFE⁵	16.54	41.23	31.16	27.98	13.44
Benchmarks
P/FCFE, Competitors⁶
AbbVie Inc.	22.73	13.57	17.37	22.66	18.76
Amgen Inc.	82.34	25.50	4.71	8.32	13.52
Bristol-Myers Squibb Co.	15.91	4.74	7.52	22.85	16.17
Danaher Corp.	23.34	40.83	53.08	32.04	20.75
Eli Lilly & Co.	57.54	64.93	75.06	60.51	35.17
Gilead Sciences Inc.	23.90	12.07	12.81	15.22	12.70
Johnson & Johnson	19.79	12.67	24.31	16.73	23.28
Merck & Co. Inc.	12.91	11.32	24.48	22.40	18.72
Pfizer Inc.	17.12	55.28	3.82	10.56	8.88
Regeneron Pharmaceuticals Inc.	21.76	22.02	28.02	25.12	10.35
Vertex Pharmaceuticals Inc.	39.16	—	33.45	19.91	26.08
P/FCFE, Sector
Pharmaceuticals, Biotechnology & Life Sciences	24.91	20.01	16.93	19.44	16.49
P/FCFE, Industry
Health Care	24.43	19.36	18.20	18.50	17.94

Based on: 10-K (reporting date: 2025-12-31), 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).

¹ Data adjusted for splits and stock dividends.

² See details »

³ 2025 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 11,684,000,000 ÷ 371,484,244 = 31.45

⁴ Closing price as at the filing date of Thermo Fisher Scientific Inc. Annual Report.

⁵ 2025 Calculation
P/FCFE = Share price ÷ FCFE per share
= 520.12 ÷ 31.45 = 16.54

⁶ Click competitor name to see calculations.

The Price to Free Cash Flow to Equity (P/FCFE) ratio exhibits considerable fluctuation over the observed period. Initial values indicate a relatively moderate valuation, followed by a period of increasing valuation, and then a significant decline.

Share Price: The share price demonstrated an initial increase from US$540.17 in 2021 to US$560.49 in 2023. However, a subsequent decline is observed, with the price falling to US$537.83 in 2024 and further decreasing to US$520.12 in 2025.
FCFE per Share: Free Cash Flow to Equity per share experienced a substantial decrease from US$40.18 in 2021 to US$19.69 in 2022. This downward trend continued to US$17.99 in 2023, followed by a further reduction to US$13.04 in 2024. A notable recovery is then seen in 2025, with FCFE per share rising to US$31.45.
P/FCFE Ratio: The P/FCFE ratio increased significantly from 13.44 in 2021 to 27.98 in 2022, and continued to rise to 31.16 in 2023. The ratio peaked at 41.23 in 2024, indicating a considerably higher valuation relative to FCFE. A dramatic decrease is then observed in 2025, with the P/FCFE ratio falling to 16.54, driven by the increase in FCFE per share and the decrease in share price.

The observed pattern suggests that the market valuation, as measured by the P/FCFE ratio, initially increased despite declining FCFE per share, potentially due to expectations of future growth. However, the peak valuation in 2024 was followed by a substantial correction in 2025, coinciding with a recovery in FCFE per share. This suggests a potential re-evaluation of the company’s prospects by investors.