Thermo Fisher Scientific Inc. (NYSE:TMO)

Price to earnings (P/E) ratio

The P/E ratio data begins from December 31, 2020, showing a value of 27.89 and subsequently declining to 23.23 by June 27, 2021. Afterwards, there is a rising trend peaking at 37.81 on September 28, 2024, before experiencing a sharp decrease to 24.55 by June 28, 2025. This indicates an initial period of valuation moderation followed by optimism reflected in higher earnings multiples, but with notable volatility toward the end.

Price to operating profit (P/OP) ratio

The P/OP ratio follows a somewhat similar pattern to the P/E ratio, starting at 22.81 on December 31, 2020, dipping to 18.53 mid-2021, and then rising to a peak level of 32.66 on September 28, 2024. Post-peak, the ratio decreases to 21.64 by June 28, 2025. This suggests fluctuating market valuation in relation to operating profitability, with an expansion phase followed by revaluation.

Price to sales (P/S) ratio

The P/S ratio starts at 5.52 on December 31, 2020, slightly declining to 5.13 by April 3, 2021, then generally fluctuates around the 4.0 to 5.5 range. It peaks modestly at 5.55 in September 2024, followed by a decrease to 3.73 in June 2025. This pattern indicates relatively stable sales valuation multiples through the periods with mild volatility and a downward adjustment at the end.

Price to book value (P/BV) ratio

The P/BV ratio trends downward over the entire analyzed period, starting from 4.56 on March 28, 2020, rising to 6.51 by October 2, 2021, but then steadily declining to 3.24 by June 28, 2025. This reflects a long-term reduction in market valuation relative to the company’s book equity, suggesting either increased book value or a de-rating by the market.

Share Price

The share price exhibited an overall upward trend from March 2020 through mid-2021, increasing from approximately $330 to a peak near $640 in October 2021. Following this peak, the price saw fluctuations with some declines and recoveries, including a notable drop to around $454 in September 2023. In the most recent periods up to June 2025, the share price again shows variability, declining to approximately $423 before a modest recovery to $463 by June 2025. This indicates a period of volatility after a strong initial growth phase.

Earnings Per Share (EPS)

EPS data is not available for early 2020 but begins from the quarter ending April 2021 with a value of 16.19. From that point, EPS increased steadily, reaching a peak of 21.85 in October 2021. Subsequently, EPS shows a gradual downward trend with some fluctuations, falling to around 14.82 by July 2023. After this low, earnings appear to stabilize and slowly recover, ending at about 17.43 in June 2025. The EPS pattern suggests initial strong profitability followed by a moderate decline and partial recovery.

Price to Earnings (P/E) Ratio

The P/E ratio trends inversely to EPS initially, starting at 27.89 in April 2021 and declining to a low near 23.23 by June 2021 as EPS rose. It then increases steadily to a peak P/E of approximately 37 in mid-2023, coinciding with periods when share price was stabilizing or declining while EPS was decreasing. This elevated P/E indicates a higher valuation relative to earnings in that period. Toward the end of the data series, the P/E ratio decreases again to about 26.56 by June 2025, reflecting improved earnings relative to share price.

Summary of Relationships and Insights

The data suggest an initial phase where both share price and EPS were growing, with a decreasing P/E ratio indicating earnings growth outpacing price increases. After the peak in late 2021, EPS declined while share price remained volatile, causing the P/E ratio to rise, implying the market was pricing in expectations not yet reflected in earnings or other factors influencing valuation. More recently, the rise in EPS alongside a modest recovery in share price has resulted in a declining P/E ratio, signaling a potential revaluation based on improving profitability. Overall, the company's financial performance demonstrates cycles of growth, correction, and stabilization over the observed periods.

Share Price Trends

The share price experienced a notable increase from $329.81 in March 2020 reaching a peak of $639.76 in October 2021. Following this peak, the price showed fluctuations, including a significant drop to $454.74 in September 2023, then rebounded again to $615.69 by June 2024. However, toward the last periods there was another decline, with the share price reducing to $463.04 by June 2025. Overall, the trend reflects high volatility with substantial increases and corrections across the observed quarters.

Operating Profit Per Share (OP Per Share)

The operating profit per share data begins in December 2020 at $19.79 and generally showed an upward trend until October 2021, where it peaked at $27.22. Afterward, it declined gradually to $17.39 in September 2023. From this low point, it stabilized with modest increases, finishing around $19.61 by June 2025. This indicates a period of growth followed by a decline and then stabilization in operating profitability on a per-share basis.

Price to Operating Profit Ratio (P/OP)

The P/OP ratio initially decreased from 22.81 in December 2020 to a low of 18.53 in April 2021, indicating a relative increase in operating profit compared to share price. Subsequently, it rose steadily reaching a high of 32.66 in September 2024, implying the share price grew faster than operating profits or that investor expectations increased. The ratio then fell towards the end of the dataset, ending at 23.62 by June 2025. This pattern of fluctuation suggests variable market sentiment and valuation relative to operating profit over time.

Overall Analysis

The period from March 2020 to June 2025 shows considerable volatility in share price coupled with more moderate movements in operating profit per share. The divergence between share price and operating profit reflected in the fluctuating P/OP ratio suggests shifts in investors' valuation of the company beyond its core operating profitability. The data indicates phases of optimism and retreat in market perception, with operational performance showing more stable but less pronounced changes.

Share Price Trends

The share price exhibited notable volatility throughout the observed periods. It started at $329.81 in March 2020, followed by a substantial increase to a peak of $639.76 in October 2021. After reaching this peak, the price generally declined with intermittent rebounds, dropping to as low as $423.55 by March 2025 before a modest recovery to $463.04 in June 2025.

Sales Per Share Trends

Sales per share data commences from the period ending April 2021, showing a steady upward climb from $81.81 to a peak of $116.53 in December 2022. Beyond this peak, the sales per share remained relatively stable, fluctuating slightly but staying close to the $110 to $114 range through mid-2025.

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

The P/S ratio demonstrated variability that did not always correspond directly with changes in share price or sales per share. For example, it peaked at 6.45 in December 2021, despite sales per share gradually increasing, indicating higher market valuation relative to sales at that time. Subsequently, the P/S ratio declined to a low of 3.73 in March 2025, paralleling the share price's diminution, even though sales per share remained relatively stable.

Overall Financial Insights

The data reflects a period of growth in sales per share, which may indicate increased operational efficiency or revenue growth on a per-share basis. However, the share price volatility, particularly the sharp increase until late 2021 followed by a decrease, suggests market sentiment or external factors influenced valuation beyond fundamental sales metrics. The fluctuating P/S ratio implies changes in investor expectations and market conditions, potentially reflecting varying perceived growth prospects or risk factors over time.

The analyzed financial data reveals notable fluctuations and trends over the observed periods with respect to share price, book value per share (BVPS), and price-to-book value (P/BV) ratio.

Share Price (US$)

The share price exhibited an overall volatility with a general upward trend from March 2020 to July 2021, peaking at 639.76 US$ in October 2021. Following this peak, there was a decline to 454.74 US$ by September 2023, indicating a period of correction or market adjustment. Afterwards, the price showed signs of recovery reaching above 570 US$ in mid-2024 before trending downward again toward mid-2025, ending at 463.04 US$. The share price movements suggest sensitivity to market conditions and potential company performance factors.

Book Value Per Share (BVPS) (US$)

BVPS demonstrated a steady and consistent increase throughout the observed periods, rising from 72.31 US$ in March 2020 to 133.77 US$ by June 2025. This upward trajectory indicates progressive growth in shareholder equity on a per-share basis, reflecting retained earnings, asset growth, or prudent capital management by the company. The consistent rise in BVPS contrasts with the fluctuating share price, suggesting underlying asset values have steadily strengthened despite market price volatility.

Price-to-Book Value (P/BV) Ratio

The P/BV ratio mirrored the volatility seen in the share price, starting at 4.56 in March 2020, rising to a high of 6.51 in October 2021, then declining steadily thereafter to a low of 3.24 by June 2025. This decline indicates that the market valuation relative to the company's book value has contracted over time. The high P/BV ratio during 2020 and early 2021 may imply heightened investor optimism or speculative premium, whereas the lower values towards 2025 suggest more conservative market pricing or reassessment of growth prospects.

In summary, while the company demonstrated strong fundamental growth as evidenced by the steadily increasing BVPS, the share price and P/BV ratio exhibited pronounced fluctuations. This divergence points to varying market sentiment and revaluation cycles, potentially influenced by external market factors, investor confidence, or company-specific developments. The contraction in valuation multiples in recent periods suggests a more cautious market approach despite the company's solid equity growth.