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DCF Valuation
Base-case fair value
$148.68
Intrinsic $198.24 · 25% MOS
Current price: $492.51
Base-case summary
Our base-case DCF for Thermo Fisher Scientific Inc. (TMO) projects 10 years of free cash flow growth at 2.0% for years 1–5 and 1.0% for years 6–10, anchored to a default 8% growth assumption, then applies a 2.5% perpetual growth rate and a 8.0% discount rate. Starting from $6.7B in trailing free cash flow, this produces an intrinsic value of $198.24 per share. A 25% safety margin gives a fair value of $148.68, suggesting the stock is currently 70% overvalued against the $492.51 market price.
See 3 scenarios side by side
Conservative, Base, and Optimistic fair values, plus the sensitivity matrix and FCF history. Free account.
Model inputs
TTM Free Cash Flow
$6.7B
Cash & equivalents
$3.3B
Total debt
$46.3B
Shares outstanding
373M