Stock Analysis on Net
Stock Analysis on Net

Thermo Fisher Scientific Inc. (NYSE:TMO)

Price to FCFE (P/FCFE)

Intermediate level

Free Cash Flow to Equity (FCFE)

Thermo Fisher Scientific Inc., FCFE calculation

US$ in millions

Microsoft Excel LibreOffice Calc
12 months ended: Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Net income 6,375  3,696  2,938  2,225  2,022 
Net noncash charges 2,309  1,942  2,175  1,287  1,363 
Changes in assets and liabilities, excluding the effects of acquisitions and dispositions (395) (665) (570) 494  (227)
Net cash provided by operating activities 8,289  4,973  4,543  4,006  3,158 
Purchase of property, plant and equipment (1,474) (926) (758) (508) (444)
Proceeds from sale of property, plant and equipment 36  50  26 
Net proceeds from issuance of debt 3,464  5,638  690  6,459  7,604 
Repayment of debt (713) (6,360) (2,052) (3,299) (4,334)
Proceeds from issuance of commercial paper 383  2,781  5,060  8,380  9,182 
Repayments of commercial paper (387) (3,464) (5,254) (8,514) (8,278)
Free cash flow to equity (FCFE) 9,570  2,678  2,279  6,531  6,914 

Based on: 10-K (filing date: 2021-02-25), 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).

Item Description The company
FCFE Free cash flow to equity is the cash flow available to Thermo Fisher Scientific Inc.’s equity holders after all operating expenses, interest, and principal payments have been paid and necessary investments in working and fixed capital have been made. Thermo Fisher Scientific Inc.’s FCFE increased from 2018 to 2019 and from 2019 to 2020.

Price to FCFE Ratio, Current

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

Microsoft Excel LibreOffice Calc
No. shares of common stock outstanding 393,027,886
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions) 9,570 
FCFE per share 24.35
Current share price (P) 482.47
Valuation Ratio
P/FCFE 19.81
Benchmarks
P/FCFE, Competitors1
AbbVie Inc. 14.18
Amgen Inc. 11.10
Eli Lilly & Co. 38.79
Gilead Sciences Inc. 6.33
Illumina Inc. 74.75
Johnson & Johnson 15.63
Merck & Co. Inc. 18.33
Pfizer Inc.
Regeneron Pharmaceuticals Inc. 14.38
Zoetis Inc. 36.60
P/FCFE, Sector
Pharmaceuticals, Biotechnology & Life Sciences 19.72
P/FCFE, Industry
Health Care 20.96

Based on: 10-K (filing date: 2021-02-25).

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

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
No. shares of common stock outstanding1 393,793,362 398,828,389 399,003,681 401,784,066 390,391,061
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)2 9,570  2,678  2,279  6,531  6,914 
FCFE per share3 24.30 6.71 5.71 16.26 17.71
Share price1, 4 451.47 309.16 259.14 208.58 157.68
Valuation Ratio
P/FCFE5 18.58 46.04 45.37 12.83 8.90
Benchmarks
P/FCFE, Competitors6
AbbVie Inc. 13.16 3.64 7.33 19.98 8.15
Amgen Inc. 11.06 33.32 12.46 11.98 9.37
Eli Lilly & Co. 36.62 15.87 35.28 11.27 14.04
Gilead Sciences Inc. 5.98 15.91 67.92 5.70 4.79
Illumina Inc. 80.93 149.01 27.24 57.76 65.66
Johnson & Johnson 15.60 23.06 24.90 14.21 14.18
Merck & Co. Inc. 17.85 18.08 22.76 43.01 24.26
Pfizer Inc. 10.09 18.96 16.06 12.30
Regeneron Pharmaceuticals Inc. 13.30 21.00 24.51 32.42 41.47
Zoetis Inc. 32.86 51.91 13.91 23.76 291.75
P/FCFE, Sector
Pharmaceuticals, Biotechnology & Life Sciences 18.82 14.19 19.77 14.47 11.91
P/FCFE, Industry
Health Care 19.46 14.46 16.96 16.53 13.30

Based on: 10-K (filing date: 2021-02-25), 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).

1 Data adjusted for splits and stock dividends.

2 See details »

3 2020 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 9,570,000,000 ÷ 393,793,362 = 24.30

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

5 2020 Calculation
P/FCFE = Share price ÷ FCFE per share
= 451.47 ÷ 24.30 = 18.58

6 Click competitor name to see calculations.

Valuation ratio Description The company
P/FCFE Price to free cash flow to equity is cash valuation indicator of stockholders’ equity. Thermo Fisher Scientific Inc.’s P/FCFE ratio increased from 2018 to 2019 but then decreased significantly from 2019 to 2020.