Thermo Fisher Scientific Inc. (NYSE:TMO)

Price to Earnings (P/E) Ratio

The P/E ratio shows a fluctuating upward trend from April 2021 through mid-2024, peaking in June 2024 at 37.81. This indicates that the market valuation relative to earnings increased significantly over this period. Following this peak, the ratio declined notably, reaching a low around 24.55 in March 2025 before recovering slightly to 32.45 by September 2025. The pattern suggests periods of heightened investor optimism followed by some valuation corrections.

Price to Operating Profit (P/OP) Ratio

Similar to the P/E ratio, the P/OP ratio generally increased from 18.53 in April 2021 to a peak near 32.66 in June 2024. This rise reflects growing market expectations relative to operating profit. Post mid-2024, there was a marked decline down to approximately 21.64 in March 2025, after which the ratio experienced a moderate rebound. The trend indicates a cyclical valuation pattern with some compression in late periods.

Price to Sales (P/S) Ratio

The P/S ratio displayed a moderate increase from 5.13 in April 2021, reaching the highest level of 5.55 in June 2024. After this peak, the ratio decreased to as low as 3.73 in March 2025 before recovering modestly to 4.87 by September 2025. This pattern indicates that sales valuation multiples were relatively stable with some expansion and contraction phases aligned with broader market valuation trends.

Price to Book Value (P/BV) Ratio

The P/BV ratio started at 5.25 in April 2021 and increased to a peak of 4.96 in June 2024, though this peak is somewhat lower relative to earlier highs such as 6.51 in October 2021. After June 2024, the ratio declined substantially, dropping to a trough of 3.24 in March 2025 before a partial recovery to 4.18 by September 2025. This indicates a decreasing market valuation relative to book value in the most recent periods, signaling potential market reassessment of underlying asset values or profitability expectations.

General Observations

Across all valuation ratios, there is a pronounced pattern of growth and peak around mid-2024 followed by a period of decline through early 2025, then moderate recovery afterwards. This cyclical behavior suggests the influence of market conditions impacting investor sentiment and valuation multiples. The price-based ratios relative to earnings and operating profit show higher volatility compared to price to sales and book value metrics, reflecting sensitivity to profitability and earnings expectations over time.

The analysis of the quarterly financial indicators reveals distinct trends and fluctuations over the observed periods. The share price exhibits considerable volatility with a general pattern of increases and decreases across quarters. Initially, a steady upward trend is noted, reaching a peak around October 2021, followed by declines and subsequent recoveries. The most recent quarters reflect a rise after a significant dip, indicating periods of market adjustment and renewed investor confidence.

Earnings per share (EPS) demonstrate a different trend. EPS peaked early in the timeframe and then showed a decline throughout 2022 and into early 2023. From mid-2023 onward, a gradual recovery is evident, with EPS values rising steadily, signaling improvements in profitability or operational efficiency in later quarters.

The price-to-earnings (P/E) ratio corresponds closely with the fluctuations observed in share price and EPS. It shows an overall increasing trend with some pronounced spikes, particularly when share price remains relatively high while EPS is declining or stabilizing. This indicates periods where market valuation outpaced earnings performance, potentially reflecting investor optimism or growth expectations despite short-term earnings pressures. More recent quarters suggest a moderation in the P/E ratio, aligning with the stabilization and growth of EPS alongside share price adjustments.

Share Price Trends

Initial upward momentum followed by volatility; recent quarters show recovery from lows.

Earnings per Share (EPS) Trends

High early values with declines during mid-period; steady recovery noted in the latest quarters.

Price-to-Earnings (P/E) Ratio Trends

Increasing trend with spikes indicating valuation sensitivity; recent moderation reflects earnings growth and price adjustments.

Overall, the data reflect a cyclical pattern in the company’s financial performance and market valuation, with clear signs of recovery and stabilization in profitability accompanied by fluctuating investor sentiment as captured by share price movements and valuation multiples.

The analysis of the financial data reveals several notable trends across the periods under consideration. The share price exhibited considerable variability, with a general pattern of fluctuation rather than a consistent increase or decrease. After peaking at 639.76 US$ in October 2021, the share price declined significantly to 454.74 US$ by September 2023, followed by a recovery to 567.39 US$ by September 2025. This indicates periods of both market confidence and volatility.

Operating profit per share (OP) showed a declining trend from April 2021 through to about July 2023, decreasing from 25.28 US$ to around 17.39 US$. From this point onward, however, there is a gradual recovery and stabilization, with values rising steadily to 19.98 US$ by September 2025. This pattern suggests initial operational challenges or margin pressures, followed by a period of operational improvement or cost management.

The Price to Operating Profit (P/OP) ratio was relatively stable and moderate in 2021, fluctuating in a range of approximately 18.53 to 23.99. However, starting from April 2023, this ratio showed a marked increase, reaching a peak above 32 in mid-2024, before declining again towards a level near 28 by September 2025. The rising P/OP ratio during this period reflects the combination of a falling operating profit and fluctuating share prices, implying an increasing market valuation relative to operational earnings.

Share Price:

Displayed high volatility with peaks and troughs; notably dropped significantly in late 2023 before gradual recovery through 2025.

Operating Profit Per Share:

Experienced a decline through mid-2023 followed by a gradual and consistent recovery, indicating some operational improvement over time.

Price to Operating Profit Ratio (P/OP):

Maintained moderate levels initially, sharply increased in 2023-2024, reflecting higher valuation relative to earnings, before decreasing moderately by late 2025.

Overall, the data suggests that the company faced operational profitability pressures in the earlier part of the timeframe, which was mirrored in fluctuating market valuations. Although these pressures led to a temporarily higher valuation multiple, the subsequent recovery in operating profit per share and share price indicates strengthening performance and possibly improved investor sentiment towards the end of the observed period.

Share Price Trend

The share price exhibited notable fluctuations over the observed periods. Initially, there was an increasing trend from $468.45 to a peak around $639.76 by October 2021, followed by a significant decline to approximately $495.55 by October 2022. Subsequently, the price showed a cyclical pattern with moderate rises and falls, peaking again near $615.69 in June 2024 before declining to around $423.55 by March 2025 and recovering slightly to $567.39 by September 2025. Overall, the share price displayed volatility with multiple intermediate peaks and troughs.

Sales Per Share (SPS) Trend

Sales per share demonstrated a steady and gradual upward trend, increasing from $91.33 in April 2021 to $116.41 by September 2025. The growth rate appears consistent with no significant drops, indicating a stable increase in revenue generation per share over time. Minor fluctuations occurred in some quarters, but overall the progression was positive and linear.

Price-to-Sales Ratio (P/S) Trend

The price-to-sales ratio showed a variable but generally declining tendency. It started at 5.13 in April 2021, reached a high near 6.45 in October 2021, and then entered a downward phase with some intermittent recoveries. By March 2025, the ratio hit a low point of 3.73 before rebounding to 4.87 by September 2025. This downward trend suggests that, relative to sales, the market valuation per share decreased over time, potentially reflecting changes in investor sentiment or underlying market conditions affecting valuation multiples.

Relationship Between Share Price, Sales Per Share, and P/S

The share price and price-to-sales ratio trends appear correlated, as both experienced peaks in late 2021 followed by declines through 2022 and early 2023. Meanwhile, sales per share steadily increased, indicating that the declines in share price and P/S ratio were not due to deteriorating sales performance. Instead, this divergence suggests that stock market valuation multiples contracted, possibly due to broader market factors or company-specific considerations unrelated to top-line revenue growth.

Overall Insights

The data reflects a company with consistent revenue growth per share but experiencing notable volatility in its share price and valuation multiples over the periods. The declining P/S ratio despite rising sales per share points to investor caution or adjustments in market expectations. The share price volatility suggests sensitivity to market conditions or other external factors, while the underlying business performance, as represented by sales per share, remains robust and steadily improving.

The share price of the company exhibited notable fluctuations over the analyzed periods. Initially, there was a steady increase from approximately $468 in early April 2021 to a peak nearing $640 by October 2021. This was followed by a decline in the last quarter of 2021 to around $540. Throughout 2022, the share price showed some volatility, with a noticeable dip to about $495 in October 2022 before rebounding towards the end of the year. In 2023, the share price remained relatively stable in the first half but experienced a significant drop by September 2023 to approximately $455, later recovering to the levels around $560 by December. The first half of 2024 again saw volatility with a peak of about $616 in June but a decline thereafter, culminating in a lower value of about $423 by March 2025. The last quarters show a moderate recovery to roughly $567 by September 2025.

The book value per share (BVPS) demonstrated a consistent upward trend throughout the entire period. Starting at $89.20 in early April 2021, the BVPS steadily increased quarter over quarter, reaching a value of about $135.79 by September 2025. This indicates gradual growth in the company’s net asset value per share over time, reflecting accumulation of equity or retained earnings.

The price-to-book value ratio (P/BV) showed considerable variability, reflecting the interplay between the share price movements and BVPS growth. Initially, the P/BV rose from 5.25 in April 2021 to a high of 6.51 in October 2021, coinciding with the peak in share price. This ratio then declined notably to approximately 3.88 by September 2023, indicating that the share price fell relative to the book value per share during this period. Following this trough, the P/BV ratio experienced fluctuations, reaching near 4.96 in June 2024 before declining again and subsequently recovering to about 4.18 by September 2025. The variations suggest changing market sentiment or valuation adjustments relative to the company’s net assets.

Overall, the data indicate that while the company’s book value per share has shown steady growth and stability, the market valuation as reflected in share price and P/BV ratio has been subject to significant volatility. This disparity between stable underlying value growth and fluctuating market pricing could imply external market conditions or investor sentiment factors influencing the share price in various periods.

Share Price Trends

Experienced initial growth, followed by multiple episodes of decline and recovery, with peak near $640 in late 2021 and trough near $423 in early 2025.

Book Value per Share (BVPS)

Displayed consistent and steady increase from $89.20 to $135.79 across the entire timeline.

Price-to-Book Ratio (P/BV)

Varied significantly in response to share price fluctuations, peaking above 6.5 in late 2021 and declining to below 4 at times, indicating shifting market valuations relative to net assets.

Overall Insight

Stable growth in intrinsic value contrasted by volatility in market pricing, pointing towards external factors influencing investor perceptions rather than fundamental value changes.