Mettler-Toledo International Inc. (NYSE:MTD) saw significant share price movement during recent months on the NYSE, rising to highs of US$1,500 and falling 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$1,232 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.
Is Mettler-Toledo International Still Cheap?
The stock seems fairly valued at the moment according to our valuation model. It's trading around 6.6% 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 that the stock is really worth $1319.46, then there's not much of an upside to gain from mispricing. 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.
Can we expect growth from Mettler-Toledo International?
Future outlook is an important aspect when you're looking at buying a stock, especially if you are an investor looking for growth in your portfolio. 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 track record of its management team. 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 an eye 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 further examining 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. In terms of investment risks, we've identified 1 warning sign with Mettler-Toledo International, and understanding it should be part of your investment process.
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.
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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.
