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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
60.25 (As of Today)

As of today, Mettler-Toledo International Inc's current share price is $578.40. Mettler-Toledo International Inc's E10 for the quarter that ended in Mar. 2017 was $9.60. Mettler-Toledo International Inc's Shiller P/E Ratio for today is 60.25.

MTD' s Shiller PE Ratio Range Over the Past 10 Years
Min: 15.02   Max: 60.11
Current: 60.26

15.02
60.11

During the past 13 years, Mettler-Toledo International Inc's highest Shiller P/E Ratio was 60.11. The lowest was 15.02. And the median was 37.57.

MTD's Shiller PE Ratio is ranked lower than
60% of the 45 Companies
in the Global Medical Instruments & Supplies industry.

( Industry Median: 43.41 vs. MTD: 60.26 )

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. 2017 was $3.480. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $9.60 for the trailing ten years ended in Mar. 2017.


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
=578.40/9.60
=60.25

* 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 Mar. 2017 was:

Adj_EPS=Earnigns per Share/CPI of Mar. 2017 (Change)*Current CPI (Mar. 2017)
=3.48/243.985*243.985
=3.480

Current CPI (Mar. 2017) = 243.985.

Mettler-Toledo International Inc Quarterly Data

201412201503201506201509201512201603201606201609201612201703
per share eps 4.1402.1902.7303.1604.4102.4002.9303.7705.1403.480
CPI 234.812236.119238.638237.945236.525238.132241.018241.428241.432243.985
Adj_EPS 4.3022.2632.7913.2404.5492.4592.9663.8105.1943.480
201206201209201212201303201306201309201312201403201406201409
per share eps 1.9302.2803.3201.6902.2402.4303.6101.9302.4902.890
CPI 229.478231.407229.601232.773233.504234.149233.049236.293238.343238.031
Adj_EPS 2.0522.4043.5281.7712.3412.5323.7791.9932.5492.962
200912201003201006201009201012201103201106201109201112201203
per share eps 2.0101.1001.4901.8202.3901.4101.8202.0902.9001.620
CPI 215.949217.631217.965218.439219.179223.467225.722226.889225.672229.392
Adj_EPS 2.2711.2331.6682.0332.6601.5391.9672.2473.1351.723
200706200709200712200803200806200809200812200903200906200909
per share eps 1.0701.1601.6901.0601.3801.5201.8301.0000.8101.210
CPI 208.352208.490210.036213.528218.815218.783210.228212.709215.693215.969
Adj_EPS 1.2531.3571.9631.2111.5391.6952.1241.1470.9161.367

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 44.0522.2530.3237.8331.3235.5539.0342.4941.7244.80

Mettler-Toledo International Inc Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
ShillerPE 42.4944.7344.6936.4541.7241.5342.1547.1844.8049.89
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