Is Thermo Fisher Scientific, Inc. overvalued or undervalued?

As of 23 July 2025, the valuation grade for Thermo Fisher Scientific, Inc. changed from attractive to fair, indicating a shift in its perceived value. The company appears to be fairly valued at this time, with a P/E ratio of 26, a Price to Book Value of 3.44, and an EV to EBITDA ratio of 18.39. In comparison to peers, Abbott Laboratories has a P/E of 18.36, while Intuitive Surgical, Inc. is considered expensive with a P/E of 63.32, highlighting that Thermo Fisher's valuation is more in line with industry averages.
Despite the fair valuation, Thermo Fisher has underperformed relative to the S&P 500, with a year-to-date return of -7.52% compared to the S&P 500's 12.22%. This trend continues over the longer term, as the company has had a one-year return of -21.15% against the S&P 500's 17.14%. Overall, while the stock is currently fairly valued, its recent performance suggests caution for potential investors.