Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Mettler-Toledo International Inc.'s cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from 5.0% to 3.5% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 66, DPO 54, DIO 87). At a 7.5% WACC with mid-year discounting, the terminal value (83% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 18.5x to Year 6 EBITDA. After subtracting net debt, the equity value implies a fair price of $1097.81 per share, suggesting MTD is fairly valued by 13.6% at the current price of $1270.98.
Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.
| 2026 | 2027 | 2028 | 2029 | 2030 | Terminal | |
|---|---|---|---|---|---|---|
| Profit Before Tax | 1,122 | 1,177 | 1,242 | 1,306 | 1,351 | 1,385 |
| (−) Net Interest | 70 | 73 | 77 | 81 | 84 | 86 |
| (+) D&A | 109 | 111 | 112 | 118 | 125 | 128 |
| EBITDA | 1,301 | 1,362 | 1,432 | 1,505 | 1,560 | 1,599 |
| (−) Tax | 203 | 213 | 225 | 236 | 244 | — |
| (−) CapEx | 119 | 125 | 132 | 139 | 144 | — |
| (−) ΔWC | 29 | 46 | 54 | 53 | 37 | — |
| Free Cash Flow (FCF) | 949 | 978 | 1,021 | 1,077 | 1,134 | — |
| Peers' EBITDA Multiple | 18.5x | |||||
| Terminal Value | 29,598 | |||||
| WACC / Discount Rate | 7.51% | |||||
| Timing of FCF (mid year) | 0.5 | 1.5 | 2.5 | 3.5 | 4.5 | 5 |
| Present Value of FCF | 916 | 877 | 852 | 836 | 819 | 20,602 |
| Enterprise Value | 24,902 | |||||
| Projection Period | 4,299 | 17.3% | ||||
| Terminal Value | 20,602 | 82.7% | ||||
| (−) Current Net Debt | 2,276 | |||||
| Equity Value | 22,625 | |||||
| (÷) Outstanding Shares | 21M | |||||
| Fair Price | $1098 | -13.6% | ||||
| WACC \ EV/EBITDA Exit Multiple | 14.5x | 16.5x | 18.5x | 20.5x | 22.5x |
|---|---|---|---|---|---|
| 5.5% | $969 | $1087 | $1206 | $1325 | $1443 |
| 6.5% | $924 | $1037 | $1150 | $1264 | $1377 |
| 7.5% | $882 | $990 | $1098 | $1206 | $1314 |
| 8.5% | $842 | $945 | $1048 | $1151 | $1254 |
| 9.5% | $804 | $902 | $1001 | $1099 | $1198 |
Current price: $1270.98. Green = undervalued, Red = overvalued.
Based on default parameters
This is an unlevered Free Cash Flow to Firm (FCFF) model with a 5-year projection period. Revenue, expenses, D&A, and working capital are projected using the same line-by-line approach as the Growth Exit models. The key difference is the terminal value methodology: instead of assuming perpetual cash flow growth, the terminal value is calculated by applying the industry peer median EV/EBITDA multiple to the projected Year 6 EBITDA.
Using a peer exit multiple anchors the terminal value to how the market currently prices comparable companies, rather than relying on a theoretical perpetual growth assumption. This approach captures relative valuation dynamics and is particularly useful when a company is expected to converge toward industry-average profitability over time. The sensitivity matrix shows how fair value changes across different WACC and EV/EBITDA multiple scenarios.