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Thermo Fisher Scientific Inc (NYSE:TMO)
Price-to-Free-Cash-Flow Ratio
20.67 (As of Today)

As of today, Thermo Fisher Scientific Inc's share price is $141.85. Thermo Fisher Scientific Inc's Free Cash Flow per Share for the trailing twelve months (TTM) ended in Sep. 2016 was $6.86. Hence, Thermo Fisher Scientific Inc's Price-to-Free-Cash-Flow Ratio for today is 20.67.

TMO' s Price-to-Free-Cash-Flow ratio Range Over the Past 10 Years
Min: 10.23   Max: 31.02
Current: 21.01

10.23
31.02

During the past 13 years, Thermo Fisher Scientific Inc's highest Price-to-Free-Cash-Flow Ratio was 31.02. The lowest was 10.23. And the median was 20.20.

TMO's Price-to-Free-Cash-Flow ratio is ranked higher than
58% of the 62 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 23.06 vs. TMO: 21.01 )

Thermo Fisher Scientific Inc's Free Cash Flow per Share for the three months ended in Sep. 2016 was $1.74. Its Free Cash Flow per Share for the trailing twelve months (TTM) ended in Sep. 2016 was $6.86.

During the past 12 months, the average Free Cash Flow per Share Growth Rate of Thermo Fisher Scientific Inc was 31.80% per year. During the past 3 years, the average Free Cash Flow per Share Growth Rate was 8.20% per year. During the past 5 years, the average Free Cash Flow per Share Growth Rate was 14.00% per year. During the past 10 years, the average Free Cash Flow per Share Growth Rate was 14.40% per year.

During the past 13 years, Thermo Fisher Scientific Inc's highest 3-Year average Free Cash Flow per Share Growth Rate was 68.20% per year. The lowest was 0.70% per year. And the median was 16.20% per year.


Definition

Thermo Fisher Scientific Inc's Price-to-Free-Cash-Flow ratio for today is calculated as

Price-to-Free-Cash-Flow Ratio=Share Price/Free Cash Flow per Share (TTM)
=141.85/6.861
=20.67

Thermo Fisher Scientific Inc's Share Price of today is $141.85.
Thermo Fisher Scientific Inc's Free Cash Flow per Share for the trailing twelve months (TTM) ended in Sep. 2016 was 2.734 (Dec. 2015 ) + 0.436 (Mar. 2016 ) + 1.953 (Jun. 2016 ) + 1.738 (Sep. 2016 ) = $6.86.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

It can also be calculated from the numbers for the whole company:

Price-to-Free-Cash-Flow Ratio=Market Cap/Free Cash Flow

Explanation

Free Cash Flow is considered more important than earnings by value investors. The reason is because, in principle, only the net cash that can be taken from the business belongs to shareholders. This Free Cash Flow can be used to grow the business, reduce debt or return to shareholders in dividends or share buybacks.

In a DCF Calculation Free Cash Flow is used to determine the intrinsic value of companies.


Be Aware

In real business, Free Cash Flow can be affected by the change in accounts receivable, accounts payable, management’s decision on expansion, etc. Therefore, investors should look at the Free Cash Flow over the longer term. Long-term average of Free Cash Flow is a more reliable indicator for real free cash flow.


Related Terms

Free Cash Flow, Free Cash Flow per Share, P/S Ratio, P/B Ratio, P/E Ratio


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Thermo Fisher Scientific Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
pfcf 24.9519.6112.8713.8918.4712.2013.6023.5223.0423.81

Thermo Fisher Scientific Inc Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
pfcf 23.7723.4423.0424.8525.6623.4923.8122.0021.9823.18
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