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Mettler-Toledo International Inc  (NYSE:MTD) E10: $9.93 (As of Jun. 2017)

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 Jun. 2017 was $3.840. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $9.93 for the trailing ten years ended in Jun. 2017.

As of today, Mettler-Toledo International Inc's current stock price is $668.72. Mettler-Toledo International Inc's E10 for the quarter that ended in Jun. 2017 was $9.93. Mettler-Toledo International Inc's Shiller PE Ratio of today is 67.34.

During the past 13 years, the highest Shiller PE Ratio of Mettler-Toledo International Inc was 66.59. The lowest was 15.02. And the median was 37.75.


Historical Data

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

* Premium members only.

Mettler-Toledo International Inc Annual Data

Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16
E10 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.43 6.20 7.10 8.11 9.23

Mettler-Toledo International Inc Quarterly Data

Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17
E10 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 8.64 8.88 9.23 9.58 9.93

Competitive Comparison
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap.


Calculation

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller P/E calculation. When we calculate the today's Shiller P/E ratio of a stock, we use today’s price divided by E10.

What is E10? How do we calculate E10?

E10 is the average of the inflation adjusted earnings of a company over the past 10 years. Let's use an example to explain.

If we want to calculate the E10 of Wal-Mart (WMT) for Dec. 31, 2010, we need to have the inflation data and the earnings from 2001 through 2010.

We adjusted the earnings of 2001 earnings data with the total inflation from 2001 through 2010 to the equivalent earnings in 2010. If the total inflation from 2001 to 2010 is 40%, and Wal-Mart earned $1 a share in 2001, then the 2001's equivalent earnings in 2010 is $1.4 a share. If Wal-Mart earns $1 again in 2002, and the total inflation from 2002 through 2010 is 35%, then the equivalent 2002 earnings in 2010 is $1.35. So on and so forth, you get the equivalent earnings of past 10 years. Then you add them together and divided the sum by 10 to get E10.

For example, Mettler-Toledo International Inc's adjusted earnings per share data for the three months ended in Jun. 2017 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Jun. 2017 (Change)*Current CPI (Jun. 2017)
=3.84/244.955*244.955
=3.840

Current CPI (Jun. 2017) = 244.955.

Mettler-Toledo International Inc Quarterly Data

per share eps CPI Adj_EPS
200709 1.160 208.490 1.363
200712 1.690 210.036 1.971
200803 1.060 213.528 1.216
200806 1.380 218.815 1.545
200809 1.520 218.783 1.702
200812 1.830 210.228 2.132
200903 1.000 212.709 1.152
200906 0.810 215.693 0.920
200909 1.210 215.969 1.372
200912 2.010 215.949 2.280
201003 1.100 217.631 1.238
201006 1.490 217.965 1.675
201009 1.820 218.439 2.041
201012 2.390 219.179 2.671
201103 1.410 223.467 1.546
201106 1.820 225.722 1.975
201109 2.090 226.889 2.256
201112 2.900 225.672 3.148
201203 1.620 229.392 1.730
201206 1.930 229.478 2.060
201209 2.280 231.407 2.413
201212 3.320 229.601 3.542
201303 1.690 232.773 1.778
201306 2.240 233.504 2.350
201309 2.430 234.149 2.542
201312 3.610 233.049 3.794
201403 1.930 236.293 2.001
201406 2.490 238.343 2.559
201409 2.890 238.031 2.974
201412 4.140 234.812 4.319
201503 2.190 236.119 2.272
201506 2.730 238.638 2.802
201509 3.160 237.945 3.253
201512 4.410 236.525 4.567
201603 2.400 238.132 2.469
201606 2.930 241.018 2.978
201609 3.770 241.428 3.825
201612 5.140 241.432 5.215
201703 3.480 243.801 3.496
201706 3.840 244.955 3.840

Add all the adjusted EPS together and divide 10 will get our e10.


Explanation

If a company grows much fast than inflation, E10 may underestimate the company's earnings power. Shiller PE Ratio can seem to be too high even the actual P/E is low.

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 of today is calculated as

Shiller PE Ratio=Share Price/E10
=668.72/9.93
=67.34

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

During the past 13 years, the highest Shiller P/E Ratio of Mettler-Toledo International Inc was 66.59. The lowest was 15.02. And the median was 37.75.


Be Aware

Shiller PE Ratio works better for cyclical companies. It gives you a better idea on the company's real earnings power.


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