Should You Think About Buying Mettler-Toledo International Inc. (NYSE:MTD) Now?

Mettler-Toledo International Inc. (NYSE:MTD) received a lot of attention from a substantial price increase on the NYSE over the last few months. The recent share price gains has brought the company back closer to its yearly peak. 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. However, could the stock still be trading at a relatively cheap price? Let’s examine Mettler-Toledo International’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.

See our latest analysis for Mettler-Toledo International

Is Mettler-Toledo International Still Cheap?

The stock is currently trading at US$1,438 on the share market, which means it is overvalued by 27% compared to our intrinsic value of $1129.49. This means that the buying opportunity has probably disappeared for now. But, is there another opportunity 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 another chance to buy in the future. 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?

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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. 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. Mettler-Toledo International's earnings over the next few years are expected to increase by 30%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.

What This Means For You

Are you a shareholder? It seems like the market has well and truly priced in MTD’s positive outlook, with shares trading above its fair value. However, this brings up another question – is now the right time to sell? If you believe MTD should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable. But before you make this decision, take a look at whether its fundamentals have changed.

Are you a potential investor? If you’ve been keeping tabs on MTD for some time, now may not be the best time to enter into the stock. The price has surpassed its true value, which means there’s no upside from mispricing. However, the positive outlook is encouraging for MTD, which means it’s worth diving deeper into other factors in order to take advantage of the next price drop.

So while earnings quality is important, it's equally important to consider the risks facing Mettler-Toledo International at this point in time. Every company has risks, and we've spotted 1 warning sign for Mettler-Toledo International you should know about.

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.