TMONEUTRAL

TMO P/E Ratio Analysis

26.9x

Updated 275h ago·SEC filings & market data

Key Takeaway

The P/E ratio of 26.9x means investors pay $26.90 for every $1.00 of the company's annual earnings per share, a common gauge of how expensive a stock is relative to its profitability.

Sector Performance

58th percentile

TMO

26.9x

Sector Median

23.1x

Sector Avg

33.8x

Prior Period

27.5x(Jul 2026)

↑ Improving

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Deep Analysis

The P/E ratio of 26.9x means investors pay $26.90 for every $1.00 of the company's annual earnings per share, a common gauge of how expensive a stock is relative to its profitability.

This is above the sector median of 23.3x, placing the stock at the 58th percentile among peers, so it is pricier than most comparable companies. The year-over-year change is N/A, but on a quarter-over-quarter basis the ratio fell 2.1%, from 27.5x to 26.9x. A valuation above the sector median but trending lower suggests the stock is not cheap, yet the recent decline does not signal a sharp repricing. This combination points to moderate risk: the market still expects solid earnings, while the slight downward drift offers a touch more room for error. On balance, this metric supports the overall NEUTRAL verdict because the P/E is neither unusually stretched nor a clear bargain relative to peers.

Frequently Asked Questions

What does the P/E Ratio tell investors about TMO?

Measures how much investors pay per dollar of earnings. A high P/E signals growth expectations; a low P/E may indicate undervaluation or slow growth.

How is the P/E Ratio calculated?

P/E Ratio is calculated as: Price / EPS.

Who are TMO's closest peers by P/E Ratio?

The closest peers by P/E Ratio include: CMCSA (7.8x), EG (7.8x), CHRD (7.7x), OXY (7.4x), THC (7.3x).

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The Formula

Price / EPS

Why It Matters

Measures how much investors pay per dollar of earnings. A high P/E signals growth expectations; a low P/E may indicate undervaluation or slow growth.