MTD
Mettler-Toledo International Inc.
$1,316.55
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Overvalued
Trading 58.0% above fair value
You pay
$1,316.55
Bear
$666.58
Fair
$833.23
Bull
$999.88
Bear
$666.58
-49.4%
$43.31 × 12x P/E
Fair
$833.23
-36.7%
$43.31 × 15x P/E
Bull
$999.88
-24.1%
$43.31 × 18x P/E
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
30.4x
Summary
Our base-case estimate uses a valuation based on adjusted earnings per share and a normalized price-to-earnings multiple. We then blend that result with the average analyst price target of $1383.80 from 19 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $833.23 per share.
Warnings
Wall Street's average price target is $1383.80 (from 19 analysts). Our estimate is 53% below the consensus -- consider that gap carefully.
Key Risks
- Growth DCF inappropriate — terminal value assumptions dominate
- EV/EBITDA misleading for regulated businesses where capex is mandated
- Regulatory risk is a fat tail not visible in normal multiples