Thermo Fisher Scientific Inc (TMO) is overvalued and Waters Corp (WAT) is overvalued.
Both trade above our estimate of their intrinsic value. TMO is the closer of the two: -138%, against -235% for WAT.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 9.2% (average of 3 methods) values the shares at $276.91; the price of $658.52 is 138% above that value, and 75% of that value comes from beyond year five.
Leak Score 45/100 on 10 of 12 signals
Discounting its cash flows at 10.4% (average of 3 methods) values the shares at $127.06; the price of $425.74 is 235% above that value, and 71% of that value comes from beyond year five.
Leak Score 45/100 on 10 of 12 signals
| Metric | TMO | WAT |
|---|---|---|
| Verdict | Overvalued | Overvalued |
| Price | $658.52 | $425.74 |
| Intrinsic value | $276.91 | $127.06 |
| Margin of safety | -138% | -235% |
| Leak Score | 45/100 (10/12) | 45/100 (10/12) |
| Market cap | $243.5B | $41.8B |
| Revenue growth, 5 years | 6.7% | 6.0% |
| Operating margin | 19.1% | 11.8% |
| Net margin | 15.0% | 3.6% |
| Return on equity | 13.5% | 1.9% |
| Debt to equity | 0.81 | 0.36 |
| P/E | 35.4x | 106.3x |
| Forward P/E | 24.0x | 25.8x |
| P/B | 4.6x | 2.8x |
| Dividend yield | 0.3% | — |