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Today we're going to take a look at the well-established Mettler-Toledo International Inc. (NYSE:MTD). The company's stock received a lot of attention from a substantial price movement on the NYSE over the last few months, increasing to US$1,500 at one point, and dropping to the lows of US$1,161. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Mettler-Toledo International's current trading price of US$1,248 reflective of the actual value of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Mettler-Toledo International’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
Check out our latest analysis for Mettler-Toledo International
Is Mettler-Toledo International Still Cheap?
According to our valuation model, Mettler-Toledo International seems to be fairly priced at around 6.9% below our intrinsic value, which means if you buy Mettler-Toledo International today, you’d be paying a reasonable price for it. And if you believe the company’s true value is $1339.68, then there isn’t much room for the share price grow beyond what it’s currently trading. Is there another opportunity to buy low in the future? Since Mettler-Toledo International’s share price is quite volatile, we could potentially see it sink lower (or rise higher) in the future, giving us another chance to buy. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.
Can we expect growth from Mettler-Toledo International?
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. With profit expected to grow by 29% over the next couple of years, the future seems bright for Mettler-Toledo International. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.
What This Means For You
Are you a shareholder? MTD’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value?