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

As of today, Mettler-Toledo International Inc's current share price is $288.56. Mettler-Toledo International Inc's E10 for the quarter that ended in Sep. 2014 was $8.42. Mettler-Toledo International Inc's Shiller P/E Ratio for today is 34.27.

MTD' s 10-Year Shiller P/E Ratio Range
Min: 12.12   Max: 38.77
Current: 34.3

12.12
38.77

During the past 13 years, Mettler-Toledo International Inc's highest Shiller P/E Ratio was 38.77. The lowest was 12.12. And the median was 26.78.

MTD's Shiller P/E Ratiois ranked higher than
84% of the 300 Companies
in the Global Medical Instruments & Supplies industry.

( Industry Median: 139.22 vs. MTD: 34.30 )

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. 2014 was $2.877. 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 $8.42 for the trailing six years ended in Sep. 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
=288.56/8.42
=34.27

* 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 Sep. 2014 was:

Adj_EPS=Earnigns per Share/CPI of Sep. 2014*CPI of Current
=2.89/238.031*236.984
=2.877

Since most companies do not have as long as 10 years history, GuruFocus uses 6 years to do the calculation.

Current CPI = 236.984.

Mettler-Toledo International Inc Quarterly Data

201206201209201212201303201306201309201312201403201406201409
per share eps 1.9302.2803.3461.6902.2402.4303.6231.9302.4902.890
CPI 229.478231.407229.601232.773233.504234.149233.049236.293238.343238.031
Adj_EPS 1.9932.3353.4541.7212.2732.4593.6841.9362.4762.877
200912201003201006201009201012201103201106201109201112201203
per share eps 2.0091.1001.4901.8202.4061.4101.8202.0902.9111.620
CPI 215.949217.631217.965218.439219.179223.467225.722226.889225.672229.392
Adj_EPS 2.2051.1981.6201.9752.6011.4951.9112.1833.0571.674
200812200903200906200909
per share eps 1.8421.0000.8101.210
CPI 210.228212.709215.693215.969
Adj_EPS 2.0761.1140.8901.328

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 25.9924.5529.9835.7118.2324.8430.3324.5627.9431.24

Mettler-Toledo International Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
ShillerPE 24.1525.5827.9429.9427.3231.7931.2429.2930.5430.43
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