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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 PE Ratio
51.46 (As of Today)

As of today, Mettler-Toledo International Inc's current share price is $475.46. Mettler-Toledo International Inc's E10 for the quarter that ended in Dec. 2016 was $9.24. Mettler-Toledo International Inc's Shiller P/E Ratio for today is 51.46.

MTD' s Shiller PE Ratio Range Over the Past 10 Years
Min: 15.07   Max: 51.46
Current: 51.44

15.07
51.46

During the past 13 years, Mettler-Toledo International Inc's highest Shiller P/E Ratio was 51.46. The lowest was 15.07. And the median was 37.33.

MTD's Shiller PE Ratio is ranked lower than
57% of the 47 Companies
in the Global Medical Instruments & Supplies industry.

( Industry Median: 41.26 vs. MTD: 51.44 )

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 Dec. 2016 was $5.140. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $9.24 for the trailing ten years ended in Dec. 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
=475.46/9.24
=51.46

* 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 Dec16 is calculated as:

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

Adj_EPS=Earnigns per Share/CPI of Dec. 2016 (Change)*Current CPI (Dec. 2016)
=5.14/241.432*241.432
=5.140

Current CPI (Dec. 2016) = 241.432.

Mettler-Toledo International Inc Quarterly Data

201409201412201503201506201509201512201603201606201609201612
per share eps 2.8904.1402.1902.7303.1604.4102.4002.9303.7705.140
CPI 238.031234.812236.119238.638237.945236.525238.132241.018241.428241.432
Adj_EPS 2.9314.2572.2392.7623.2064.5012.4332.9353.7705.140
201203201206201209201212201303201306201309201312201403201406
per share eps 1.6201.9302.2803.3201.6902.2402.4303.6101.9302.490
CPI 229.392229.478231.407229.601232.773233.504234.149233.049236.293238.343
Adj_EPS 1.7052.0312.3793.4911.7532.3162.5063.7401.9722.522
200909200912201003201006201009201012201103201106201109201112
per share eps 1.2102.0101.1001.4901.8202.3901.4101.8202.0902.900
CPI 215.969215.949217.631217.965218.439219.179223.467225.722226.889225.672
Adj_EPS 1.3532.2471.2201.6502.0122.6331.5231.9472.2243.103
200703200706200709200712200803200806200809200812200903200906
per share eps 0.7801.0701.1601.6901.0601.3801.5201.8301.0000.810
CPI 205.352208.352208.490210.036213.528218.815218.783210.228212.709215.693
Adj_EPS 0.9171.2401.3431.9431.1991.5231.6772.1021.1350.907

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

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ShillerPE 44.1622.3130.3837.8931.3635.6039.0842.5541.7845.29

Mettler-Toledo International Inc Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
ShillerPE 36.9742.5544.7844.7336.1541.7841.1942.2147.2545.29
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