Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Thermo Fisher Scientific Inc. (TMO)

Company Dividend Discount ModelIndustry: Medical - Diagnostics & ResearchSector: Healthcare

Valuation Snapshot

Stable Growth$814.32 - $3,442.97$2,031.03
Multi-Stage$400.16 - $438.16$418.81
Blended Fair Value$1,224.92
Current Price$464.24
Upside163.85%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS14.44%9.52%1.541.381.201.040.890.780.700.620.630.63
YoY Growth--11.47%14.95%15.19%17.21%13.47%11.65%12.24%-0.59%-0.91%2.47%
Dividend Yield--0.31%0.24%0.21%0.18%0.19%0.29%0.26%0.30%0.41%0.44%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)6,570.00
(-) Cash Dividends Paid (M)623.00
(=) Cash Retained (M)5,947.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)1,314.00821.25492.75
Cash Retained (M)5,947.005,947.005,947.00
(-) Cash Required (M)-1,314.00-821.25-492.75
(=) Excess Retained (M)4,633.005,125.755,454.25
(/) Shares Outstanding (M)379.50379.50379.50
(=) Excess Retained per Share12.2113.5114.37
LTM Dividend per Share1.641.641.64
(+) Excess Retained per Share12.2113.5114.37
(=) Adjusted Dividend13.8515.1516.01
WACC / Discount Rate7.29%7.29%7.29%
Growth Rate5.50%6.50%7.50%
Fair Value$814.32$2,031.03$3,442.97
Upside / Downside75.41%337.50%641.64%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)6,570.006,997.057,451.867,936.238,452.089,001.479,271.51
Payout Ratio9.48%25.59%41.69%57.79%73.90%90.00%92.50%
Projected Dividends (M)623.001,790.273,106.644,586.586,245.798,101.328,576.15

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate7.29%7.29%7.29%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)1,652.891,668.561,684.22
Year 2 PV (M)2,648.162,698.602,749.51
Year 3 PV (M)3,609.673,713.293,818.88
Year 4 PV (M)4,538.294,712.824,892.33
Year 5 PV (M)5,434.845,697.345,969.89
PV of Terminal Value (M)133,976.51140,447.62147,166.40
Equity Value (M)151,860.35158,938.23166,281.24
Shares Outstanding (M)379.50379.50379.50
Fair Value$400.16$418.81$438.16
Upside / Downside-13.80%-9.79%-5.62%

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