Yahoo Finance Is There Now An Opportunity In Mettler-Toledo International Inc. (NYSE:MTD)?
Mettler-Toledo International Inc. (NYSE:MTD) saw a decent share price growth in the teens level on the NYSE over the last few months. With many analysts covering the large-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. But what if there is still an 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 the opportunity still exists.
See our latest analysis for Mettler-Toledo International
Is Mettler-Toledo International Still Cheap?
According to my valuation model, Mettler-Toledo International seems to be fairly priced at around 9.93% above my intrinsic value, which means if you buy Mettler-Toledo International today, you’d be paying a relatively reasonable price for it. And if you believe the company’s true value is $1195.91, there’s only an insignificant downside when the price falls to its real value. So, is there another chance to buy low in the future? Given that Mettler-Toledo International’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us an opportunity to buy later on. This is based on its high beta, which is a good indicator for share price volatility.
What kind of growth will Mettler-Toledo International generate?
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. With profit expected to grow by a double-digit 19% over the next couple of years, the outlook is positive 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?
Are you a potential investor? If you’ve been keeping tabs on MTD, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the positive outlook is encouraging for the company, which means it’s worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.
If you'd like to know more about Mettler-Toledo International as a business, it's important to be aware of any risks it's facing. At Simply Wall St, we found 2 warning signs for Mettler-Toledo International and we think they deserve your attention.
If you are no longer interested in Mettler-Toledo International, you can use our free platform to see our list of over 50 other stocks with a high growth potential.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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