Thermo Fisher Scientific - Comparative Multiple Analysis

Thermo Fisher Scientific (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Thermo Fisher Scientific

WikiWealth compares Thermo Fisher Scientific's revenue, EBITDA, and EBIT multiples to their peers in order to determine the appropriate fair valuation. Click in the top right corner to experiment with Thermo Fisher Scientific's comparative analysis.

Notes from the analysis:

1. WikiWealth uses quantitative measures to determine the multiple range for Thermo Fisher Scientific.
2. Free cash flow to the firm (FCF) multiple is free cash flow to equity holders plus interest owed to Thermo Fisher Scientific's debt holders.
3. Multiples incorporate benefits due to economies of scale; WikiWealth compares absolute enterprise value multiples to competitor's multiples.
4. WikiWealth excludes outliers when calculating individual company multiples.

Helpful Information for Thermo Fisher Scientific's Analysis

How does this work? The Comparative Investment Analysis determines the value of Thermo Fisher Scientific by comparing Thermo Fisher Scientific financial ratios, prices, growth rates, margins, etc. to those of relevant peer groups.

Value Investing Importance? This method is widely used by investment professionals to determine the correct price of investments, especially initial public offerings (IPOs). It is one element of WikiWealth's three Wall Street approaches used to determine the correct fair value of Thermo Fisher Scientific.

See the Thermo Fisher Scientific cash flow (DCF) analysis for a completely different approach that's popular on Wall Street for determining the value of an investment in Thermo Fisher Scientific.

Also, see the Thermo Fisher Scientific's buffett intrinsic valuation analysis for WikiWealth's attempt to replicate the investing formula's used by Warren Buffett and Thermo Fisher Scientific's valuation conclusion for a quick summary.