Mettler-Toledo International Inc. (MTD) Intrinsic Value

DCF-based fair value calculation with Bear, Base, and Bull scenarios

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Mettler-Toledo International Inc. (MTD)

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Intrinsic Value (DCF)

Current$1,496.61
Intrinsic$790.85
-47%
$509.24$790.85$1,325.98
Market implies 28% growth for 5 years
Current price reflects execution expectations above 13% growth — not unreasonable for quality businesses.
At $1497, the market prices in continued strong cash flow growth (28%) — likely reflecting buybacks, margin stability, and ecosystem strength.
Range: Bear $509 → Bull $1326. Current price implies expectations above the base case, closer to bull expectations.
Discount ↓Growth →9%11%13%15%
8%$968$1061$1162$1269
10%$657$722$791$865
12%$486$534$585$641
14%$376$414$455$498

Bull Case

  • Bull case ($1326) with 15% growth, 9% discount rate
  • Conservative 13% growth assumption is achievable based on track record

Bear Case

  • Bear case ($509) implies 66% downside at 10% growth, 12% discount
  • Price reflects 28% growth expectations vs 13% historical — high bar to clear
  • Trading 47% above base case — execution must exceed assumptions to justify
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5-Year Free Cash Flow Projection

Year 1$973.36M
Year 2$1.10B
Year 3$1.23B
Year 4$1.39B
Year 5$1.56B
Terminal$23.02B

📐 Model Inputs

Growth Rate12.6%5Y CAGR (cascade: 5Y→3Y→TTM)
Discount Rate10.0%WACC estimate
Terminal Growth3.0%Perpetuity rate
Base Free Cash Flow$864.45MTTM actual
Bear g×0.8, r+2%
Base Historical CAGR
Bull g×1.2, r−1.5%
ℹ️

DCF estimates based on historical growth rates extrapolated forward. See FAQ below for full methodology.

Frequently Asked Questions

Is MTD stock undervalued or overvalued?
🔴 OVERVALUED

MTD trades at $1496.61 vs. our DCF-derived intrinsic value of $790.85, implying -47% downside. Using a 10.0% WACC and 12.6% FCF growth assumption, the current price requires growth rates above our estimates to be justified. Even our bull case ($1166.72) suggests limited upside.

What is MTD's intrinsic value?

Using a 5-year DCF model: Base FCF of $864M, projected at 12.6% 5Y CAGR (best of revenue, EPS, or FCF growth), discounted at 10.0% WACC, with 3.0% terminal growth. Terminal value calculated via Gordon Growth Model: TV = FCF₅ × (1+g) / (WACC−g). After deducting $2.07B net debt and dividing by 0.02B shares: Bear $520.92 | Base $790.85 | Bull $1166.72. Current price $1496.61 implies -47% to base case.

How is MTD's fair value calculated?

DCF Methodology:

① Project FCF years 1-5 using 12.6% growth derived from 5-year historical CAGR (best of revenue, EPS, or FCF growth, with 8% floor and 25% cap).

② Calculate terminal value at year 5 using perpetuity growth model with g=3.0%.

③ Discount all cash flows to PV using WACC=10.0%.

④ Sum PV of explicit period + PV of terminal value = Enterprise Value ($18.93B).

⑤ Subtract net debt, divide by shares outstanding.

Sensitivity analysis available above—adjust WACC ±2% or growth ±3% to stress-test the valuation. Implied EV/FCF multiple: 21.9x.