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Mettler-Toledo International Inc (NYSE:MTD)
Shiller P/E Ratio
32.80 (As of Today)

As of today, Mettler-Toledo International Inc's current share price is $263.55. Mettler-Toledo International Inc's E10 for the quarter that ended in Mar. 2014 was $8.04. Mettler-Toledo International Inc's Shiller P/E Ratio for today is 32.80.

MTD' s 10-Year Shiller P/E Ratio Range
Min: 12.15   Max: 38.77
Current: 32.8

12.15
38.77

During the past 13 years, Mettler-Toledo International Inc's highest Shiller P/E Ratio was 38.77. The lowest was 12.15. And the median was 26.57.

MTD's Shiller P/E Ratiois ranked higher than
87% of the 320 Companies
in the Global Medical Instruments & Supplies industry.

( Industry Median: 9999.00 vs. MTD: 32.80 )

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller P/E calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years.

Mettler-Toledo International Inc's adjusted earnings per share data for the three months ended in Mar. 2014 was $1.950. Since most companies do not have as long as 10 years history, here we use 6 years to calculate. Add all the adjusted EPS for the past 6 years together and divide 6 will get our E10, which is $8.04 for the trailing six years ended in Mar. 2014.


Definition

For the Shiller P/E, the earnings of the past 10 years are inflation-adjusted and averaged. The result is used for P/E calculation. Since it looks at the average over the last 10 years, the Shiller P/E is also called PE10.

The Shiller P/E was first used by professor Robert Shiller to measure the valuation of the overall market. The same calculation is applied here to individual companies.

Mettler-Toledo International Inc's Shiller P/E Ratio for today is calculated as

Shiller P/E Ratio=Share Price/E10
=263.55/8.04
=32.78

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Mettler-Toledo International Inc's E10 for the fiscal year that ended in Dec13 is calculated as:

For example, Mettler-Toledo International Inc's adjusted earnings per share data for the three months ended in Mar. 2014 was:

Adj_EPS=Earnigns per Share/CPI of Mar. 2014*CPI of Current
=1.93/236.293*238.786
=1.950

Since most companies do not have as long as 10 years history, here we use 6 years to calculate:

Current CPI = 238.786.

Mettler-Toledo International Inc Quarterly Data

201203201206201209201212201303201306201309201312201403201406
per share eps 1.6201.9302.2803.3461.6902.2402.4303.6231.9302.490
CPI 229.392229.478231.407229.601232.773233.504234.149233.049236.293238.343
Adj_EPS 1.6862.0082.3533.4801.7342.2912.4783.7121.9502.495
200909200912201003201006201009201012201103201106201109201112
per share eps 1.2102.0091.1001.4901.8202.4061.4101.8202.0902.911
CPI 215.969215.949217.631217.965218.439219.179223.467225.722226.889225.672
Adj_EPS 1.3382.2211.2071.6321.9902.6211.5071.9252.2003.080
200809200812200903200906
per share eps 1.5201.8421.0000.810
CPI 218.783210.228212.709215.693
Adj_EPS 1.6592.0921.1230.897

Add all the adjusted EPS together and divide 6 will get our E10.


Explanation

Compared with the regular P/E ratio, which works poorly for cyclical businesses, the Shiller P/E smoothed out the fluctuations of profit margins during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Shiller P/E should give similar results to regular P/E.

Compared with the P/S ratio, the Shiller P/E makes the comparison between different industries more meaningful.


Be Aware

The Shiller P/E assumes that over the long term, businesses and profitability revert to their means. If a company’s business model does not work in the future compared with the past, the Shiller P/E and P/S ratio will give false valuations.


Related Terms

P/E Ratio, P/B Ratio, P/S Ratio, Price-to-Free-Cash-Flow ratio, E10


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Mettler-Toledo International Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ShillerPE 25.8024.5730.0135.7518.2424.8630.3424.5727.9530.97

Mettler-Toledo International Inc Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
ShillerPE 29.3924.1625.5927.9529.9527.3331.8130.9729.330.00
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