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Thermo Fisher Scientific, Inc. (TMO) — WACC Analysis

WACC Breakdown

Thermo Fisher Scientific, Inc. (TMO) has a weighted average cost of capital (WACC) of 8.2%. The cost of equity is 9.1%, derived from a beta of 0.85 and a risk-free rate of 5.3%. The after-tax cost of debt is 3.0%. The capital structure is 86.2% equity and 13.8% debt.

Interpretation

A WACC of 8.2% is moderate, reflecting the market's balanced risk assessment of Thermo Fisher Scientific, Inc..

Investors can compare TMO's WACC of 8.2% against industry peers to gauge its relative financing costs. A beta of 0.85 reflects the stock's volatility relative to the broader market.

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VALUATION

TMO WACC: 8.24% for Thermo Fisher Scientific, Inc.

Current inputs imply a 9.09% cost of equity and a 3.74% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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WACC Calculation Process
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Market Data Loaded
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Company Data Fetched
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Beta Calculated (5Y)
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Inputs Auto-Populated
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WACC Calculated
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Step 2: Enter Ticker Symbol
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Step 4: Review Auto-Populated WACC Inputs

Values are automatically populated from real data. You can adjust them manually if needed.

4.30%
1.000
4.23%
5.00%
21.00%
70.00%
Debt: 30.00%Equity: 70.00%

Please enter a valid company ticker to calculate WACC

Thermo Fisher Scientific, Inc. Common Stock (TMO) WACC Results
Weighted Average Cost of Capital
8.24%
Cost of Equity
9.09%
Risk-Free Rate5.28%
Beta0.85
Market Risk Premium4.23%
Cost of Debt
2.96%
Pre-Tax Cost of Debt3.74%
Tax Rate21.00%
Tax Shield0.79%
Capital Structure
Equity: 86.20%($244.79B)
Debt: 13.80%($39.18B)
Equity Component
7.83%
86.20% × 9.09%
Debt Component
0.41%
13.80% × 2.96%

Thermo Fisher Scientific, Inc. (TMO) WACC in context

Thermo Fisher Scientific, Inc. (TMO) currently screens with an estimated WACC of 8.24%. That blends a 9.09% cost of equity, a 3.74% pre-tax cost of debt, and a 86.20% equity weight into the discount rate you would typically use in a DCF model.

falls into a common range for established public companies and is a practical DCF starting point.

What TMO WACC implies

A 8.24% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates TMO

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.85 and equity accounts for 86.20% of capital.

What to do next

Validate business quality on the company page, then carry the same discount-rate assumptions into the DCF page to test fair value sensitivity.

Disclaimer: This is not financial advice. Data sourced from SEC EDGAR and Polygon.io. Past performance does not guarantee future results. Always conduct your own research before making investment decisions.