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GuruFocus has detected 5 Warning Signs with Mettler-Toledo International Inc $MTD.
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Mettler-Toledo International Inc (NYSE:MTD)
Shiller P/E Ratio
46.73 (As of Today)

As of today, Mettler-Toledo International Inc's current share price is $415.00. Mettler-Toledo International Inc's E10 for the quarter that ended in Sep. 2016 was $8.88. Mettler-Toledo International Inc's Shiller P/E Ratio for today is 46.73.

MTD' s Shiller P/E Ratio Range Over the Past 10 Years
Min: 15.02   Max: 48.55
Current: 46.43

15.02
48.55

During the past 13 years, Mettler-Toledo International Inc's highest Shiller P/E Ratio was 48.55. The lowest was 15.02. And the median was 37.42.

MTD's Shiller P/E Ratio is ranked lower than
52% of the 46 Companies
in the Global Medical Instruments & Supplies industry.

( Industry Median: 47.08 vs. MTD: 46.43 )

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 Sep. 2016 was $3.770. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $8.88 for the trailing ten years ended in Sep. 2016.


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
=415.00/8.88
=46.73

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Mettler-Toledo International Inc's E10 for the fiscal year that ended in Dec15 is calculated as:

For example, Mettler-Toledo International Inc's adjusted earnings per share data for the three months ended in Sep. 2016 was:

Adj_EPS=Earnigns per Share/CPI of Sep. 2016 (Change)*Current CPI (Sep. 2016)
=3.77/241.428*241.428
=3.770

Current CPI (Sep. 2016) = 241.428.

Mettler-Toledo International Inc Quarterly Data

201406201409201412201503201506201509201512201603201606201609
per share eps 2.4902.8904.1402.1902.7303.1604.4102.4002.9303.770
CPI 238.343238.031234.812236.119238.638237.945236.525238.132241.018241.428
Adj_EPS 2.5222.9314.2572.2392.7623.2064.5012.4332.9353.770
201112201203201206201209201212201303201306201309201312201403
per share eps 2.9001.6201.9302.2803.3201.6902.2402.4303.6101.930
CPI 225.672229.392229.478231.407229.601232.773233.504234.149233.049236.293
Adj_EPS 3.1021.7052.0312.3793.4911.7532.3162.5063.7401.972
200906200909200912201003201006201009201012201103201106201109
per share eps 0.8101.2102.0101.1001.4901.8202.3901.4101.8202.090
CPI 215.693215.969215.949217.631217.965218.439219.179223.467225.722226.889
Adj_EPS 0.9071.3532.2471.2201.6502.0122.6331.5231.9472.224
200612200703200706200709200712200803200806200809200812200903
per share eps 1.3000.7801.0701.1601.6901.0601.3801.5201.8301.000
CPI 201.800205.352208.352208.490210.036213.528218.815218.783210.228212.709
Adj_EPS 1.5550.9171.2401.3431.9431.1991.5231.6772.1021.135

Add all the adjusted EPS together and divide 10 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 local exchange's currency.

Mettler-Toledo International Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
ShillerPE 0.0044.2222.3430.4237.9531.4035.6438.7642.6141.82

Mettler-Toledo International Inc Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
ShillerPE 37.8137.0242.6144.8444.7936.1941.8241.2442.2547.30
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