Is Mettler-Toledo International Inc (MTD) overvalued?
On Equity Rank's model estimate, MTD trades 62% above its fair value. Mettler-Toledo International Inc (MTD) last closed at $1,722.15; the multi-method model fair value is $1,059.67.
| Price | Model fair value | Price vs model |
|---|---|---|
| $1722.15 | $1059.67 | 63% above |
What the answer rests on
- 0 of 7 valuation methods put MTD's value above its price and 7 put it below, so the methods mostly agree.
- To justify today's price, MTD's free cash flow would need to grow about 17.7% a year for ten years (a reverse discounted cash flow). Over the last three years it actually grew 4.8% a year.
- MTD trades at 38.8 times its last year's earnings, against a median of 37.5 for 26 profitable Life Sciences Tools companies.
- Over the past year the price sat below the model fair value on 0% of trading days. The gap ranged from 16% above to 71% above the model fair value.
Read this before relying on it
The model fair value is an estimate from published financial statements. It is not a forecast of where the price goes, and it can be wrong. Within 10% either side we call it close to fair value: valuation models are not precise enough to read more into a smaller gap. Our own lists have no proven edge over the market yet; the live record shows every result, misses included.
Every valuation method behind MTD's fair value · What prices assume · Other companies