Is Johnson & Johnson or Thermo Fisher Scientific more undervalued?

As of Oct 23, 2026, Johnson & Johnson is at −36.9% to fair value and Thermo Fisher Scientific at +1.4%. Thermo Fisher Scientific is the more undervalued of the two. Model-based estimate, not financial advice.

Which has higher quality, Johnson & Johnson or Thermo Fisher Scientific?

Johnson & Johnson has a quality score of 80/100 and Thermo Fisher Scientific 62/100. Johnson & Johnson leads on quality.

STOCK COMPARISON

Johnson & Johnson vs Thermo Fisher Scientific: Fair Value & Quality

Both stocks run through our valuation models. Here is how Johnson & Johnson (JNJ) and Thermo Fisher Scientific (TMO) compare, as of Oct 23, 2026.

As of Oct 23, 2026, Fair Value Calculator sees Thermo Fisher Scientific as the more attractively valued of the two: Johnson & Johnson trades at $268 versus a fair value of $169 (−36.9%), while Thermo Fisher Scientific trades at $677 versus $686 (+1.4%).

Johnson & Johnson

JNJ · USD · Health Care

−36.9%

upside to fair value

overvalued

Price$268

Fair Value$169

Quality80/100

Thermo Fisher Scientific

TMO · USD · Health Care

+1.4%

upside to fair value

fairly valued

Price$677

Fair Value$686

Quality62/100

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Head-to-head numbers

Green is the better side of a row, red the weaker one (for valuation multiples: lower = cheaper). Grey rows are for reference only and are not scored.

betterweakerfor reference, not scored

Johnson & JohnsonThermo Fisher Scientific

Valuation

39.1×P/E (TTM)37.4×

23.0×Forward P/E (FY2027)24.5×

24.5×Median P/E at FY-end (ex one-offs where documented)31.6×

6.33×P/S (TTM)5.56×

7.71× · book value is mostly goodwillP/B4.82× · book value is mostly goodwill

19.0×EV/EBITDA24.2×

2.82×PEG1.98×

−36.9%Fair value upside+1.4%

0.5%Dividend yield0.3%

$1.30Dividend per share$1.80

Profitability

25.1%Operating margin18.8%

1.14×EBIT margin trend (5Y)0.74×

25.7%Return on equity13.5%

13.5%Return on assets6.1%

Growth

5.9%Revenue growth (YoY)10.5%

5.6%Avg. growth/yr (3Y)-0.3%

2.7%Avg. growth/yr (5Y)6.7%

+13.8%Value creation/yr+2.6%

Balance & size

26.4×Interest coverage (EBIT/interest)5.7×

0.48×Debt / equity0.67×

$629BMarket cap$257B

healthyGrowth qualityhealthy

Johnson & Johnson, median P/E at fiscal year-end, 9 fiscal years (2016 to 2025), reported earnings, 8 of the years ex one-offs: 24.5. Thermo Fisher Scientific, median P/E at fiscal year-end, 10 fiscal years (2016 to 2025), reported earnings, 6 of the years ex one-offs: 31.6.

Forward P/E: price divided by the analyst consensus for the first fiscal year that has not started yet. The current year carries special items from quarters already reported.

Johnson & Johnson leads: 9 to 5 metric wins.

n/a = not meaningfully computable, for example with negative equity.

Quality in detail

The quality score, broken down into the same factor families as on the stock page, 0 to 100 per family.

Johnson & Johnson Thermo Fisher Scientific

ProfitabilityHow much profit the company makes from its sales and capital

Quality GrowthAre margins and returns getting better?

CashflowDo the profits arrive as real cash?

Financial strengthDebt, balance sheet and risk of trouble

InvestmentDoes it invest with discipline instead of growing at any price?

Low VolatilityHow calm the share price moves, does not count

MomentumPrice trend of the last 3 to 12 months, does not count

Near the 52-week highDistance to the 52-week high, does not count

New sharesBuys back shares or issues new ones?

What the models say

How far the median fair value (base case) per model family sits from the current price, in percent. The amount in the currency of the trading venue is shown underneath.

above the price, more than 15% above close to the price, 85% to 115% of the price below the price, more than 15% below

Model family	Johnson & JohnsonPrice $268	Thermo Fisher ScientificPrice $677
DCF Models	−36.4%below the price$170	−38.8%below the price$414
Earnings-Based	−70.6%below the price$78.71	−69.9%below the price$204
Dividend Discount	−59.0%below the price$110	n/a
Multiples	−36.9%below the price$169	−54.2%below the price$310
Growth DCF	−45.2%below the price$147	−46.4%below the price$363
Economic Profit	−62.3%below the price$101	−73.6%below the price$178
Growth Earnings	−22.8%below the price$207	−49.3%below the price$343
Minimum	−70.6%below the price$78.71	−73.6%below the price$178
Maximum	−22.8%below the price$207	−38.8%below the price$414
Median	−45.2%below the price$147	−51.8%below the price$326
Geometric mean	−50.1%below the price$134	−57.3%below the price$289

Minimum, maximum, median and geometric mean refer to the family values in this table. Geometric because deviations are ratios: half the price and twice the price average to 100%, not 125%.

Johnson & Johnson: 24 of 24 models see the stock below the current price.

Thermo Fisher Scientific: 22 of 22 models see the stock below the current price.

Scenario ranges

From our cautious bear scenario to the optimistic bull scenario. The white tick is the current price (value above it), the green tick the fair value (value below it): if the price sits left of the fair value, there is room to rise.

Johnson & Johnson

Price $268

Fair Value $169

Bear $108Bull $255

Thermo Fisher Scientific

Price $677

Fair Value $686

Bear $411Bull $892

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Ranked within their sector

Where each stock sits within its sector peer group. Band = middle 50% of peers, tick = median, dot = this stock.

Johnson & Johnson · Health Care

Quality score80 · Top 25%

Fair value upside−36.9% · below median

Thermo Fisher Scientific · Health Care

Quality score62 · above median

Fair value upside+1.4% · above median

Bottom line

Johnson & Johnson has the higher quality score (80/100).

Open Thermo Fisher Scientific live analysis →

Johnson & Johnson · Thermo Fisher Scientific

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A model-based valuation snapshot from 26 models. Values change with price and fundamentals; the date shown above applies.