TMO FCF Yield Analysis
Updated 275h ago·SEC filings & market data
Key Takeaway
A 2.9% FCF yield means the company generates free cash flow equal to 2.9% of its current market value, so for every $100 invested, it produces $2.90 in cash after operating and capital expenses.
Sector Performance
34th percentileTMO
2.9%
Sector Median
4.2%
Sector Avg
9.3%
Prior Period
3.1%(Jul 2026)
Deep Analysis
A 2.9% FCF yield means the company generates free cash flow equal to 2.9% of its current market value, so for every $100 invested, it produces $2.90 in cash after operating and capital expenses.
That figure sits below the sector median of 4.1%, placing TMO in the 34th percentile of peers, so a majority of similar companies offer higher cash returns for the same price. The trend is only partially available: year-over-year change is N/A, but the quarter-over-quarter change is -6.5%, with free cash flow yield falling from 3.1% to 2.9% in the latest period. This combination of below-median level and a recent quarterly decline suggests weaker cash generation relative to valuation, which could add risk or limit upside versus peers. The metric does not contradict the
Frequently Asked Questions
What does the FCF Yield tell investors about TMO?
One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.
How is the FCF Yield calculated?
FCF Yield is calculated as: Free Cash Flow / Market Cap.
Who are TMO's closest peers by FCF Yield?
The closest peers by FCF Yield include: RARE (-18.7%), CG (-19.3%), RXRX (-20.3%), PLUG (-22.0%), NTLA (-22.5%).
Learn More About FCF Yield
Understanding Free Cash Flow
Free cash flow is the lifeblood of any business. In this post, we explore why it matters more than net income for long-term investors.
Free Cash Flow Yield: Why It Matters More Than Earnings Per Share
EPS is accounting. FCF is reality. Here's how to calculate free cash flow yield, why Warren Buffett prioritizes it, and how to use it to spot genuinely profitable companies.
The Formula
Free Cash Flow / Market Cap
Why It Matters
One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.
Master TMO's Valuation
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2.9%
Sector Median
4.2%
Sector Avg
9.3%
How TMO's FCF Yield compares to sector peers.
Also Analyze
Not financial advice. Research tool only. Data may be delayed.